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Farm loan waiver in Rajasthan yet to kick in


New Delhi, Jan 3: On one hand Rajasthan chief minister Ashok Gehlot has announced loan waiver for farmers in the state, on the other hand banks are denying loan for the Kharif crops that has intensified the trouble of farmers.


Actually, land of 32 lakh farmers is mortgaged with the commercial banks. Banks give loan to farmers only after mortgaging their land. Rajasthan chief minister had around 10 days ago announced loan waiver but the process of it has not yet started.

The chief minister has announced waiving of loan of farmers up to Rs two lakh to fulfill its election promises but the process has not yet been initiated to provide them the benefit. However, the CM has constituted a committee for it but no meeting has taken place so far. Finance and cooperative department suggest that around Rs 9500 crore debt of farmers is with cooperative banks and around Rs 11000 crore is with the Land Development Bank. Banks have already taken loan to the tune of Rs 2200 crore from NCDC.

[RBI expresses its reservation over loan waiver of farmers; political parties promises it]

Besides cooperative banks, lakhs of farmers have borrowed money from commercial banks, gramin banks and many other banks operational in the rural areas. Around 24 lakh farmers have borrowed money from 21 nationalized banks and around 7 lakh farmers have taken loans from private banks.

Similarly, 7500 farmers have taken loan from Overseas Banks. All these banks have taken land document of farmers as collateral. A report by Rajasthan State Level Bankers Committee tells that around 58 lakh farmers in Rajasthan are under debt and on an average a farmer has a debt of Rs 1.69 lakh.

Around 32 lakh farmers have taken loan from commercial banks which is Rs 2.20 lakh crore on an average. As per the commitment made by the Congress, the government will have to bear the burden of Rs 38000 crore for waiving loan up to Rs two lakhs.

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