MUMBAI, 3 March 2008 — Two days after the Congress-led United Progressive Alliance(UPA) government rolled out a 600 billion-rupee debt waiver scheme for farmers, federal Agriculture Minister and President of Nationalist Congress Party (NCP) Sharad Pawar yesterday asked farmers not to replay money taken from unauthorized moneylenders and urged state governments to devise a comprehensive mechanism for protecting farmers from loan sharks.
“Farmers need not pay a single penny to these moneylenders. Several private moneylenders carry out lending illegally with no authority or license,” Pawar told at a press conference here.
Pawar said he would soon write to all state governments to set up “mechanism and machinery” at tehsil and block levels to protect the farmer. “Action should be taken against such illegal moneylenders,” he said.
“They carry out lending illegally and use muscle power and harass farmers,” the minister said, pointing out that at block and tehsil levels, police and revenue officials can look into the problem.
He appealed to farmers not to go to moneylenders and added that the government has not taken any decision in respect of licensed moneylenders, who had provided credit to the farmers. However, stringent action will be taken against unauthorized moneylenders, he said.
“I will instruct my party workers and others to stop farmers from paying money to these illegal moneylenders. We will establish a committee at the taluka level to free the farmers from the clutches of these evil forces,” Pawar said.
The NCP chief took a swipe at Shiv Sena working President Uddhav Thackeray for his attempts to seek credit for the loan waiver announced by the UPA government. Major political parties in Maharashtra are on a back-patting spree after the announcement of the loan waiver decision by the federal government. While the NCP has launched a publicity blitzkrieg in the form of a full-page advertisement in the print and audiovisual media, the Shiv Sena is staking credit for the loan waiver through party mouthpiece Saamna.
The opposition Bharatiya Janata Party (BJP) too is taking credit for the loan waiver through strategically placed hoardings all over Maharashtra. Basking in the glory of a voter-friendly budget, Congress in the state is yet to react to the publicity gimmicks launched by its opponents and coalition partners.
On an earlier occasion, Deputy Chief Minister R.R. Patil too had made a similar announcement. But faced with threats from the moneylenders and mounting interest on the loans, farmers caught in the debt trap chose to pay off whatever sums they could.
In some cases, the amount of interest worked out to more than the principal, forcing farmers to give away their land to the moneylenders. Even after they gave away their lands, many farmers are being forced to pay off the debt.
