Merely waiving off loans may not benefit farmers as it was temporary relief: Director, Institute for Development and Communication, Prof Pramod Kumar | Photo from REUTERS

There are nearly 10.5 lakh farmers' families and 20 lakh people engaged in the avocation of agriculture in Punjab who are living under a huge debt trap of Rs 80,000 crore raised from private money lenders and banks.

The Congress, in its election manifesto, had promised to waive off all farm loans but it scaled down the eligibility criteria when it came to power and said it will only waive off loans upto Rs 2 lakh that too raised from co-operative and nationalised banks.

The fund-starved Punjab Congress government in its 21 month-old rule has waived of debts of some 4,27,000 farmers by spending a whopping Rs 3,586 crore. The first phase of loan waiver scheme was launched in January, 2018 under which loans of some 3,18,0003 farmers raised from co-operative banks were waived off. Additional Rs 1,771 crore was spent to benefit additional 1,09,000 farmers in the second phase.

Awaiting for closure of their loan accounts are still some 2,69,752 farmers.

OPPOSITION CALLS WAIVER A CRUEL JOKE

For opposition Shiromani Akali Dal, the loan waiver scheme was a cruel joke as those having raised loans above Rs 2 lakh were not covered under the scheme.

Spokesperson and General Secretary, Shiromani Akali Dal Dr Daljeet Singh Cheema says the government deliberately chose a section of farmers whose loan was below Rs 2 lakh.

"During elections the Congress said it will waive-off all farmer loans but it only waived-off loans of farmers who owe a small amount. Majority of farmers have loans above Rs 2 lakh who are committing suicides. They do not have any plan to write off loans raised from private money lenders. Farmers stopped paying their loan installments when the government announced the loan waiver. However, loans of only a few farmers were waived and those waiting for their turn were charged panel interest by the banks," Dr Daljeet Singh Cheema said.

CONGRESS COUNTERS AKALI DAL

Congress Spokesperson Jagpal Singh Abulkhurana countering the Akali Dal says the farmers were compelled to resort to suicides as they did not get any respite from the Akali Dal-Bharatiya Janata Party government.

"Majority of farmers who were committing suicides belong to the category of very poor and marginal farmers. We decided to waive their loans first to save them from distress. The government may think to waive-off loans above Rs 2 lakh when four phases of the current loan waiver scheme are over," Jagpal Singh Abulkhurana said.

EXPERTS AGAINST THE LOAN WAIVER

Director, Institute for Development and Communication, Prof Pramod Kumar said that merely waiving-off the loans may not benefit the farmers as it was a temporary relief. Their lot, says Professor Pramod, will not change till their income increases and they get social security.

"The answer does not lie in debt waiver, it lies in increasing the MSP [Minimum Support price] to increase the productivity. Therefore, the need is to rethink over the agriculture policy. The basic question is that how to double the income of farmers that is the fundamental question which all these governments have started addressing now. The need is to involve policies which can increase the farmer's income or to double it so that farming as a venture becomes profitable or liveable," Prof Pramod Kumar said.

Prof Pramod Kumar said that more emphasis should be given on technology transfer also by providing the farmers the social security and safety cover so that the farmers are not compelled to borrow money from private money lenders which will again get them into a debt trap.

"If this is not done they [farmers] will never be able to emancipate themselves from the vicious debt cycle. The governments will come and waive-off loans but the farmers will continue to live under a debt trap till their income is not doubled," Prof Pramod Kumar said.

Each Punjab resident is under a debt of Rs 55,314 and state's outstanding debt is likely to be Rs 2,11,523 crore in 2018-19.