The Hindu : Kerala / Thiruvananthapuram News : Powers and functions of proposed farm panel

Online edition of India's National Newspaper
Friday, Oct 27, 2006
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Kerala

Kerala - Thiruvananthapuram

Powers and functions of proposed farm panel

Special Correspondent

THIRUVANANTHAPURAM: The Farmers' Debt Relief Commission envisaged under the Bill introduced in the State Assembly on Thursday is to have a retired High Court Judge as its chairperson.

The Bill proposes as its members an agriculture economist, a farm scientist, a farmer, and a person nominated by the Government from the cooperative sector. In addition, it will also have a farmer nominated from each district with powers to exercise the powers given to him in matters relating to his/her district alone.

The panel will have powers to recommend to the Government districts or specific areas within the districts as `distress affected.' It can fix, in the case of non-institutional creditors, a fair rate of interest and appropriate level of debt, according to its appraisal of what is just and reasonable, to be repaid by the indebted farmers.

The commission will undertake conciliation to settle disputes between the farmers and the creditors and adjudicate on the disputes to pass awards that will be binding on both parties. It will also negotiate with the creditors for loan waiver, interest rate relief, loan rescheduling or loan moratorium in distress-affected areas.

Another key function of the commission is to determine the extent and the manner in which debt relief shall be provided to the farmers. It can recommend to the Government the takeover of the entire debt or part of it and relieve heavily indebted farmers of the burden of their debts.

The commission will recommend to the Government the steps required to ensure future credit requirements of the farmers. It will further make periodical reports to the Government on matters pertaining to farmers' indebtedness.

The commission will hold sittings in places where it deems necessary, inviting to the sittings the local MP, MLAs, District Collector, district panchayat president and chairpersons of the local bodies in the area.

In the case of loans given by institutional lenders such as banks, the commission can authorise one of its members to enter into negotiations with the institution concerned on behalf of the debtors.

The negotiations will be for rescheduling repayments, waiving penal interest etc. as permitted under the guidelines of the Reserve Bank of India. In the case of loans from financial institutions owned or fully controlled by the Government, the commission can reschedule the repayments in distress situations.

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