YSR urged to press for interest waiver on loans
Posted by Ramoo on January 26, 2007
Opposition wants him to lead all-party delegation to Delhi
HYDERABAD: Three major Opposition parties and farmers’ unions affiliated to the Left parties urged Chief Minister Y.S. Rajasekhara Reddy on Thursday to prevail upon the Centre to extend the benefit of interest waiver to the loans obtained by farmers that were rescheduled without their consent.
The TDP, CPI (M) and CPI and others asked the Chief Minister to lead a delegation of political parties and farmers’ organisations to the Prime Minister Manmohan Singh to appraise him of the problems faced by the farmers who were not able to pay the compounding and penal interest.
Ryots in dire straits
Though the Prime Minister had announced a special package of financial assistance to put an end to the farmers’ suicides, its benefit was not reaching the desired sections due to the technicalities involved in it.
Participating in a round-table convened by the CPI-affiliated AP Ryotu Sangham here on Thursday, TDP leader K. Vidyadhara Rao, S. Sudhakar Reddy, MP (CPI), CPI (M) leader S. Malla Reddy and others lamented that the Government’s packages were benefiting wilful defaulters at the expense of farmers who were in dire need of assistance.
While the Government had announced that farmers would be eligible for fresh credit, NABARD was refusing to finance them citing technical reasons.
Mr. Vidyadhara Rao said a majority of farmers were still not covered under institutional credit and efforts should be made to revive the cooperative credit structure. Mr. Sudhakar Reddy suggested that the State could invoke the Rural Indebtedness Relief Act incorporating provisions like waiver of interests and deferment of loan.
Mr. Malla Reddy said the Centre should control the interest charged by private lenders by taking steps like writing off the loans once the interest exceeded the principal.
APCC spokesman N. Tulasi Reddy assured that he would take the matter to the notice of the Government seeking its immediate action into it. Ryotu Sangham representative K. Ramakrishna presided over the event.