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Budget 2008




On waiver of Agriculture loans in Budget
From the article by P. Sainath in The Hindu, March 10, 2008
In Vidharbha the average land holding is 7.5 acres (3.03 hectares), way above the cut-off mark of 2 hectares for bank loan waiver. 50% of the farmers are above the cut off mark not because they are big landlords. Their holdings are unproductive and unirrigated. The farmers get Rs.4,400 loan per acre. For those above the waiver limit, one time settlement of 75% repayment is the deal. They wouldnt be drowning debts, if at all they are able to repay 75%. In reality, the farmers are in the grip of private moneylenders, who account for about 3/4ths of their debts.
In contrast, for the farmers of Western Maharashtra, the holdings are small, well irrigated and more productive. The average credit loan is Rs.13,000/- per acre. In addition they receive Rs.18,000/- for drip irrigation. For grape growers, the loan is as high as Rs.80,000/- per acre.
Each year, nationalized banks write off 1000s of crores as bad debts, which are money owed by tiny number of rich businessmen. During NDA rule between 2000 and 2004, the banks wrote off Rs.44,000 crores for these businessmen. In 2004, the last year of NDA, the write-off went up by 16%. One beneficiary was Ketan Parikh group Co. that saw Rs.60 crore knocked off. The loan outstanding of farmers in scheduled commercial banks as of 2006-07, is 20,499 crores, but of 13 million account holders.
The media discussions about farmers are by CEOs, stockbrokers, business editors, corporate lobbyists and touts in 3 piece suits Will the Budget be pro-poor aam aadmi Budget or will Mr. Chidambaram use the opportunity to do good (for the country) in terms of reforms. If the Budget is pro poor it cannot be good for the country. . And now for the bad news, a plea for cut in corporate taxes went unheeded. If it does not give the corporate world more goodies, it is bad.
But for the election year, there will not even be an admission that the farmer is in misery, the suicides are mounting and that a loan waiver is possible.

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ramar2005

Senior Desi
Member since: Sep 04
Posts: 1233
Location: India.

Post ID: 117432 16-03-08 05:15:44
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JATINRAHI
Desi
Member since: Mar 08




Posts: 52
Location:


Cannot forget, writing off debts of rich businessman is not a case of poor governance by political parties. It is simple case of corruption. Loans are given to people knowingly, for a cut. Then, written off.

This can be prevented by honest administration and stricter laws.

Whereas the farmers, who even otherwise get subsidies in fertilisers, pesticides, power supply, and even get a guaranteed price for their products, and WHO DO NOT HAVE TO PAY INCOME TAX are poor because their forefathers started multiplying like ants, reducing the size of farms per heir.

The whole issue is just political.


 
Last edited by: JATINRAHI on 17-03-08 04:41:37
Post ID: 117487 17-03-08 04:38:03
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