‘Financial assistance for flood relief not enough’: Farm outfits demand complete loan waiver to help farmers with rabi sowing

It entails Rs 48,000 per hectare financial assistance to farmers and under MNREGA, upto Rs 3 lakh to farmers for soil errosion among other relief. Farm organizations believe unless loans are written off, farmers will not be able to avail fresh loans from banks and financial institutions.

Pressing the demand for a complete loan waiver, president of Swabhimani Shetkari Sanghatana Raju Shetti said, “The one-time package to farmers appear promising on paper. But for lakhs of farmers whose kharif crop has been washed out, it is irreconcilable loss. With some flood relief funds, farmers may cope temporarily, but how do they get back to fields? Where will they get money to buy seeds, fertilizers and other materials needed for sowing?”

“The Centre and state has written off loans running into crores for the corporate sector. Now, farmers are reeling under financial distress for reasons beyond their control,” said Shetkari acknowledging that while loan waiver will not be enough, it will at least help farmers make a fresh start.

Shrikant Umrikar, a leader of Shetkari Sanghatana, said, “The loan waiver is the only way out to help farmers avail crop loans for rabi sowing.”

While acknowledging the floods have caused havoc in Maharashtra, specially drought-hit Marathwada region, Umrikar said, “Unlike in the past, the good monsoon and moisture retained in the soil could prove advantageous to the farmers. The state government should come forward to ensure farmers don’t face any problems in rabi sowing… good moisture and sufficient water should help farmers cultivate two crops instead of one in large tracts of agricultural land.”

The India Meteorological Department (IMD) has announced monsoon’s retreat from Maharashtra from October 10. According to agriculture department officials, the sowing of rabi crops begins from mid- September. This year, due to heavy rains, the rabi sowing will get delayed.

In Maharashtra, the area under kharif sowing (June to September) is 156 lakh hectares and rabi (October to March) is 61 lakh hectares.

Last year, the area under rabi sowing increased upto 62.81 lakh hectares. Major crops sown in rabi season include wheat, jowar, bajri, chickpeas.

About the financial assistance for flood-relief, Chief Minister Devendra Fadnavis said, “This is a one-time flood relief package, the highest in the history of Maharashtra by any government.” Responding to growing demand for loan waiver over and above the package, Fadnavis said, ” The state government will look into it at an appropriate time.”

In June 2017, the then Fadnavis-led government had announced the biggest loan waiver of Rs 34,000 crore for 89 lakh farmers. In 2019-2022, Uddhav Thackeray-led Maha Vikas Aghadi had announced Rs 21,000 crore loan waiver to farmers.
The government’s decision to provide financial assitance but not offer a loan waiver is being used by the Opposition to attack the Mahayuti.

At a public rally in Chhatrapati Sambhajinagar, Shiv Sena ( UBT) president Uddhav Thackeray said, “Why should the government wait for an appropriate time? It should immediately announce a complete loan waiver…Moreover, the much touted package of Rs 31,628 crore is an “eye wash”. If they are so sincere, let them credit Rs 1 lakh in the accounts of farmers before Diwali.”

Farm leader Umrikar said, “The policies of the Centre and the state are always driven to help industries…textile, mills, poultry… As a result, farmers are left at the mercy of agents who exploit them. Why not allow free market to determine rates? Let farmers strike a deal with traders. The government should provide logistics such as warehouses where farmers can keep their stock and not be forced into distress sale of crops.”

Vijay Jawandhia, another farmer leader from Vidarbha, said, “Unless farmers get higher renumeration for their crops, they will not be able to withstand calamities—natural or man-made. In the present case , they have been subjected to both.”

Stating that Centre’s flip flop policies on import and export has caused huge damage to farmers, Raju Shetti said, “However, what we witnessed in recent months should be a wake up call for everyone. We have to make our farmers ready to combat climatic challenges.”

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