THIRUVANANTHAPURAM: The Kerala Assembly on Thursday referred to its Select Committee the Bill for a landmark legislation meant to provide support to the farmers reduced to penury under the impact of the policy of economic liberalisation being pursued by the country.

Piloting the Bill, titled `The Kerala Farmers' Debt Relief Commission Bill, 2006,' Revenue Minister K. P. Rajendran said the proposed legislation was but part of the efforts set in motion by the Left Democratic Front (LDF) Government to check the growing tendency of the farmers, burdened with debt, to commit suicide.

The Bill envisages the setting up of a Farmers' Debt Relief Commission with judicial status and extensive powers to help debt-ridden farmers.

The commission will examine the grievances of agricultural debtors and take such measures as are necessary to assist them to recover from their obligations to non-institutional lenders.

Commission's powers

It will have powers to fix one-time settlement of loans, interfere in cases where the creditors are unreasonable or exploitative, reduce or waive interest, declare moratorium on repayment and even write off the principal amount of the loan in the case of heavily indebted farmers.

Chief Minister V. S. Achuthanandan told the House that due to obvious reasons, a State legislation could not address the problem of the farmers having heavy debts with institutional lenders such as banks.

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