The Hindu : Kerala / Thiruvananthapuram News : Task force to submit report before March 31

Online edition of India's National Newspaper
Sunday, Jan 24, 2010
ePaper | Mobile/PDA Version

Kerala

Kerala - Thiruvananthapuram

Task force to submit report before March 31

Special Correspondent

‘Large number of farmers have borrowed from private moneylenders’

Suggestions will be submitted to amend Money Lenders Act
Only 500 had reported indebtedness to relief panel

THIRUVANANTHAPURAM: The task force constituted by the Centre for studying the problems of farmers who have borrowed money from private moneylenders and are not covered by the agriculture debt waiver scheme will submit its recommendations for amending the Money Lenders Act in all States before March 31.

The sub-group of the task force for the southern region, comprising Shashi Rekha Rajagopalan, Director, National Bank for Agriculture and Rural Development (NABARD), and H.S. Shylendra of the Institute of Rural Management, toured the State to study the problems of small and marginal farmers who have secured financial assistance from private moneylenders.

They told reporters here on Saturday that a large number of farmers in the State had borrowed from private moneylenders, but only 500 had reported that to the Agriculture Debt Relief Commission. The farmers were afraid of declaring that they had borrowed money from them. This situation should change. Farmers should come forward to declare their dependence on moneylenders. The recommendations would be submitted for amending the Money Lenders Act, they said.

The sub-group met Finance Minister T.M. Thomas Isaac, officials of the NABARD, farmers and academic institutions. The sub-groups were expected to file their recommendations together, but they would also consider the unique characteristics in each State and report it to the Centre, they said.

They would also suggest measures for covering all farmers, especially small and marginal farmers, tenant farmers, share croppers and oral lessees, within the institutional credit fold and making the Kisan Credit Card Scheme more effective.

It was in pursuance of the announcement made by the Union Finance Minister in his budget speech for 2009-10 that the Union government constituted the task force to look into the non-coverage of farmers indebted to moneylenders under the loan waiver scheme.

The terms of reference of the task force are: overview of the existing legislation in the States for regulating loans from moneylenders in the country; a review of existing policy measures for addressing the issue of indebtedness arising out of loans from moneylenders and status of its implementation; and suggestion of measures for covering all categories of farmers, more particularly small and marginal farmers, tenant farmers, share croppers and oral lessees within the institutional credit fold to meet their credit requirements in order to reduce their dependence on informal sources. It was also asked to examine and suggest measures for improving the effectiveness of the Kisan Credit Card (KCC) scheme, including revised operational guidelines for distribution and sanction of KCC credit limits and to suggest measures for providing relief to farmers indebted to moneylenders.

The 16-member task force is headed by the Chairman, NABARD.

The sub-group for the southern region held broad-based discussions with senior officials of the State government, NABARD, the Reserve Bank of India, the cooperative and the commercial banks and non-governmental organisations (NGOs), farmers and academic institutions during its two-day visit in the State.

Printer friendly page
Send this article to Friends by E-Mail

Kerala