Andhra Pradesh - Anantapur   

Rythu Sangham picks holes in moratorium Bill

By Our Staff Reporter

ANANTAPUR, JUNE 22. The Andhra Pradesh Rythu Sangham (APRS), affiliated to the CPI, termed the AP Farmers' Agricultural Debts (Moratorium) Bill adopted by the State Assembly as incomprehensive and not of much utility to the farming community.

Talking to newspersons here today, the State secretary of APRS, K. Ramakrishna, said the Bill had several shortcomings. As a majority of private moneylenders in rural areas were not licensed they would not come under the purview of the Bill. The Government could not proceed legally against them even if they harass the farmers for repayment of loans, he observed. Besides, the Bill did not include commercial banks and cooperative societies. As such, farmers who had taken loans from them would not be benefited by the Government's decision, he said. The Bill would provide relief to a very small section of farmers as neither the moneylenders in rural areas nor the banks and societies come under its purview. The credit flow to the farmers would come down drastically as the moneylenders in rural areas think that they would be penalised, due to lack of awareness that they are not covered under the Bill. They would fear to ask the farmers to repay the old loans and may not issue fresh loans, he explained. To overcome the situation the commercial banks were required to lend the farmers on a massive scale, as about 80 per cent of them were depending on moneylenders. The cooperative societies were not in a position to issue new loans as they are financially weak, he said.

Mr. Ramakrishna stated that out of 4,600 PACSs in the State, 2,400 were sick. He requested the State Government to talk to the Centre to waive farmers' loans up to Rs. 30,000 and provide them with real relief. The APRS would stage dharna in front of all banks on June 30 demanding waiver of loans and issuance of fresh loans all over the State.

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