india

Updated: Dec 12, 2016 11:11 IST

Kalawati Bandurkar had thought her hardships had ended in July 2008 when Congress vice-president Rahul Gandhi visited her, propelling her to national headlines.

In a speech in Parliament, the Congress leader promised to empower her and thousands like her with progressive policies such as the India-United States nuclear deal.

Overnight, her humble house in Maharashtra’s parched Vidarbha region was swarming with journalists and Congress workers offering her financial assistance. She was given a fixed deposit that was supposed to give her Rs 14,000 every month – just enough to sustain her family of seven.

But the government’s shock recall of Rs 500 and Rs 1000 notes over a month ago has left her a pauper again. The 61-year-old is having great difficulty in accessing any cash in a region ravaged by a decades-old agrarian crisis and a spate of farmer suicides.

Facts Millions of crisis-ridden farmers across the Vidarbha region in Maharashtra are caught in a pincer grip between the banks and local money lenders.

At least 300 farmers have killed themselves this year in six districts – Amravati, Yavatmal, Wardha, Washim, Akola and Buldhana.

Farmers say since demonetisation, they have had to sell their produce at a loss, further squeezing their economic condition.

“I have travelled 25km to my bank at least ten times but got money on only three occasions – Rs 2,000 twice, and Rs 3,000 – and that too in Rs 2,000 currency note,” says an agitated Kalawati, a resident of Jalka village in Yavatmal district.

She lost her husband Parshuram in 2005 after he committed suicide, unable to bear the burden of crippling debts and back-to-back crop failure.

He had borrowed Rs 25,000 in crop loan from a local bank and more than Rs 1.50 lakh from private money lender. With the debts still not paid and little cash coming her way, Kalawati is wondering how to make ends meet.

The government usually waives off loans if farmers kill themselves. But Kalawati said that has also changed. “When I went to the bank on December 2, I was told the bank deducted Rs 10,000 from my account as repayment of a crop-loan taken by my husband in 2004,” says Kalawati.

She isn’t the only one. Millions of crisis-ridden farmers across the Vidarbha region are caught in a pincer grip between the banks and local money lenders who are the mainstay in an economy broken by years of crop failure.

Moneylenders – who govern the local economy by lending small sums without solid collaterals as demanded by banks – have also been badly hit by the demonetisation move.

.hthighlightswrap {width:40%; height:auto; background-color:#f1f1f1; font-family:Roboto, "Roboto Black", "Roboto Light", "Roboto Medium", "Roboto Thin"; margin-right: 20px; margin-top:10px; margin-

bottom:10px; border-bottom:2px solid #40a3d3; float:left}

.hthighlight_top { width:92%; background-color:#40a3d3; font-size:110%; text-transform:lowercase; padding:4%; font-weight:700; color:#FFF; float:left}

.hthighlight_story a {width:96%; margin-bottom:5px; text-transform:none; text-decoration:none; font-weight:normal; color:#262626; padding:4%; float:left}

.hthighlight_story a:hover {color:#40a3d3}

.hthighlight_story a:visited {color:#939598}

@media only screen and (max-width:360px) {

.hthighlightswrap {width:100%; height:auto; background-color:#f1f1f1; font-family:Roboto, "Roboto Black", "Roboto Light", "Roboto Medium", "Roboto Thin"; border-bottom:2px solid #40a3d3; margin-top:5px; margin-bottom:10px; float:left}

.hthighlight_top { width:92%; background-color:#40a3d3; font-size:110%; text-transform:lowercase; padding:4%; font-weight:bold; color:#FFF; float:left}

.hthighlight_story a {width:96%; margin-bottom:5px; text-transform:none; text-decoration:none; font-weight:normal; color:#262626; padding:4%; float:left}

.hthighlight_story a:hover {color:#40a3d3}

.hthighlight_story a:visited {color:#939598}

}