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Farmer-the most endangered species

Maharashtra govt. accuses PMO of delay in releasing funds for farmers

Posted by Ramoo on February 28, 2007

http://www.hindustantimes.com/news/181_1941183,000…
Satya Prakash

New Delhi, February 28, 2007

The Maharashtra Government has accused the Prime Minister’s Office of delay in releasing additional funds for ex-gratia assistance to suicide-affected farmers’ families in the state.
Due to undue delay in release of money from the Prime Minister’s National Relief Fund for this purpose, an amount of Rs 1.80 crore had to be earmarked from the chief minister’s fund for the purpose, the Maharashtra Government said in an affidavit filed in the Supreme Court.
This component of the package authorised district collectors to sanction Rs 10,000 for a suicide-affected family for health and education related expenses, it said, adding an amount of Rs 50 lakh each was placed for disposal with the six District Collectors for this purpose in August 2006.
“This amount has fully been disbursed to the needy families and the state government has been requesting the Prime Minister’s Office for additional funds. The state government has even earmarked Rs 1.80 crore from the chief minister’s fund, with a view to keep the scheme running…otherwise the scheme had to be stopped due to delay in receiving grants from the Prime Minister’s Office,” the Maharashtra Government said in its affidavit.
The affidavit has been filed in response to a PIL by advocate Sanjiv Bhatnagar seeking review of the current agriculture policy in view of suicides committed by thousands of farmers in various parts of the country.
The court had on August 14, 2006 issued notices to the Union Agriculture Ministry and the governments of Maharashtra, Karnataka, Andhra Pradesh and Kerala on the petition that also sought modifications in the agriculture policy to check suicides by farmers.
Maharashtra also complained that NABARD has shown its unwillingness to provide loans under the Rural Infrastructure Development Fund.
On crop loan too, it said that NABARD refinance at the rate of 2.5 per cent would be available only to the tune of the total crop loan requirement and the remaining finance had to be made available by the state agencies which would put them in huge loss.
“Thus, the State Government will have to bear this financial burden of about Rs 200 crore for implementing the decision of the Government of India for providing crop loan at the rate of 7 per cent. The Government of India needs to immediately take the decision of giving 100 per cent refinance at the rate of 2.5 per cent,” the state government said.
It said that 75 per cent of the suicides in the last five years took place in Amravati, Yavatmal, Akola, Buldhana and Wasim districts of Amarawati Division and Wardha District of Nagpur Division of the state. Yavatmal district alone accounted for 27 per cent of the total suicides, it added.
On the reasons behind farmers’ suicide, the affidavit said that it “is a complex problem and need not be understood in the light of indebtedness alone, which is only one of the multiple socio-economic and psychological factors”.
Quoting from a study by Mumbai-based Indira Gandhi Institute of Development Research, it said the main reasons behind farmers’ suicide were indebtedness, crop failure and low return, illness of family members, inability to arrange finance for marriage of daughter and lack of income earning opportunities from subsidiary occupations.
However, the state government asserted that it “is wholly committed to mitigate the problem of farmers’ suicides by comprehensive, scientific and realistic policy package but said impact on the ground certainly would take some time to show.”
Quoting the data released by the government, the petitioner had pointed out that in the last five years an alarming number of 8927 farmers committed suicide in the said four states-Karnataka (5910) Andhra Pradesh (1835), Maharashtra (981) and Kerala (201).
Email Satya Prakash: satya.prakash@hindustantimes.com

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