885 crore for cooperatives, but this will not ease loan burden of farmers: Unions

Jagmohan Singh Patiala of Bharti Kisan Union (Dakuanda) said that Rs 885 crore has been allocated for PSCADB, under which 89 banks come.

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Finance Minister Harpal Singh Cheema. (File)

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A day after Finance Minister Harpal Singh Cheema allocated funds for Punjab State Cooperative Agricultural Development Bank (PSCADB) and District Central Cooperative Banks (DCCBs) during the Budget 2023-24 and said that the Punjab government wants them to stand on their feet, farmer leaders on Saturday said that the amount was not enough to do any good work.

Jagmohan Singh Patiala of Bharti Kisan Union (Dakuanda) said that Rs 885 crore has been allocated for PSCADB, under which 89 banks come. “So each bank will only get around Rs 10 crore each and this is not enough to pay back its NABARD loan and clear terminal benefits of its pensioners that were stopped 2013. Some funds were allocated to these banks before the budget and the amount is being mentioned in the budget now,” he said.

The farmer leader added that a large number of small & marginal farmers and farm labourers owe a lot of money to cooperative societies, Agricultural Development Bank (ADB) and Central Cooperative Bank. “In this budget, nothing has been done to ease this huge debt. Farmers who took loans from ADB are the worst affected as their interest amount is much more than the principal,” he said, adding that they had brought this to CM Bhagwant Mann’s notice and he had assured to look into this. “However, with this meager allocation, how will the cooperatives even pay back to NABARD or pay pensions and other benefits to their employees,” he asked.

He added that Mann had assured a one-time settlement to bring farmers out of the debt trap, “but this budget doesn’t fulfill the promise”. He added that due to the huge debts, farmers have become defaulters and are facing “Kurki cases” (attachment of their farm lands).

Under Section 67 (C) of Punjab Cooperative Societies Act, 1961, Assistant Registrar Cooperatives and Deputy Registrars have the power to take the ownership of farmers’ land and attach those to the bank.

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