The Hindu : Karnataka News : Deve Gowda demands waiver of interest on farm loans

Online edition of India's National Newspaper
Sunday, Jul 04, 2004

Karnataka

Karnataka

Deve Gowda demands waiver of interest on farm loans

By Our Special Correspondent

BANGALORE, JULY 3. The former Prime Minister, H.D. Deve Gowda, today said the interest and penal interest on all farm loans of last year should be waived even if it was opposed by the National Bank for Agriculture and Rural Development or even the Reserve Bank of India.

The Prime Minister, Manmohan Singh, who made a statement during his recent visit to Andhra Pradesh that he would do his best for the welfare of farmers, should stand by the commitment made by the former Prime Minister, A.B. Vajpayee, who had announced that the interest on farm loans of the past one year would be waived. Similarly, the State Government should fulfil a similar commitment made in the last budget.

Mr. Deve Gowda told presspersons here that the State Government should waive all such farm loans for which farmers had paid interest and penal interest. In the case of farm loans obtained 10 years ago, farmers had paid interest and penal interest that was more than double the principal amount. Yet the cooperative banks claimed dues from them.

The former Prime Minister expressed confidence that the Dharam Singh-led coalition Government would announce relief measures for farmers shortly. The Congress and the Janata Dal (Secular) had stated in their election manifestoes that interest and penal interest on farm loans would be waived. This was likely to figure in the Common Minimum Programme of the two parties that would be finalised. The waiver of farm loans and the interest and penal interest on loans would not cost more than Rs. 100 crore. The previous Government had assured small coffee growers on waiver of interest and this should be honoured.

He said with the Congress heading the coalition Government at the Centre, the State was expected to benefit and it was for the Chief Minister to impress upon the Prime Minister to help the State. "I appreciate the measures taken by the Deputy Chief Minister and Finance Minister, Siddaramaiah, to plug the revenue leaks. This will help in additional resource mobilisation which will go a long way in the implementation of the Common Minimum Programme".

The CMP would be for a five-year term and would be backed by necessary budgetary support. The Congress and the Janata Dal (S) would do their best to fulfil the assurances given to the people.

On whether he agreed with the assurance of the Congress that the Government would pay Rs. 500 a month to the unemployed youth, Mr. Deve Gowda said the Government could do this if it had funds.

According to an estimate, it would cost Rs. 2,000 crore and the distribution of 20 kg of rice per family per month to the people below the poverty line would cost another Rs. 1,000 crore.

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