The Hindu : Tamil Nadu News : Budget failure to write off loans deplorable: ryots

Online edition of India's National Newspaper
Wednesday, Mar 02, 2005

Tamil Nadu

Tamil Nadu

Budget failure to write off loans deplorable: ryots

By Our Special Correspondent

COIMBATORE, MARCH 1. Various farmers' associations in the State have expressed disappointment over the Union Budget for failing to write off the agricultural loans.

In a statement, M.R. Sivasamy, State president of the Tamilaga Vivasayigal Sangham, termed the announcement of the Union Finance Minister that 30 per cent new loans would be extended to the agriculturists "ridiculous."

He contended that it would be impossible for the farming community to repay the loans as drought continued for the fifth year in succession.

The budget, which envisaged a revenue of Rs. 3.61 lakh crores, could have easily written off Rs. 50,000 crores of farmers' dues. "Failure to do so is deplorable."

Besides, when bank officials refused to give new loans for those who had not settled their arrears, it was ridiculous to say that new loans would be extended to the tune of 30 per cent, he observed.

No special scheme

He lamented that there was no special scheme for alleviating the problems of the farmers of Tamil Nadu.

He said the prices of paddy, maize, cotton and pulses had crashed because of liberalisation in global trade.

To prevent the fall in prices, to encourage exports and to discourage imports and to procure directly at the local level, the Centre had failed to come out with any scheme in the budget.

No rationale

The State general secretary of the Tamil Nadu Maanila Vivasaya Sangham, V.K. Ramasamy, deplored the failure of the Centre to allocate anything for linking of at least peninsular rivers.

When there was no scope for water at all and with borewells drying up everywhere, he found no rationale behind allocating Rs. 400 crores for micro irrigation and Rs. 100 crores for improving the minor irrigation schemes.

`Painful'

Similarly, claiming that agricultural loans would be increased was "really painful" as a number of agriculturists were committing suicide because of their inability to repay their dues.

He contended that the Centre could have allocated some amount towards writing off the loans as done by Rajaji in 1936.

The earmarking of Rs. 72 crores for agricultural marketing infrastructure was inadequate.

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