File photo of the floods that ravaged Kerala in 2018
The State government has also decided to allocate ₹ 85 crores to compensate farmers who suffered crop losses in the recent floods.
The Kerala Government on Tuesday temporarily prohibited banks from recovering loans from farmers plagued by the loss of livelihood caused by the catastrophic floods that ravaged the State last year.
Chief Minister Pinarayi Vijayan, who chaired a special cabinet meeting to address the humanitarian crisis caused by crop loss and plummeting prices for agriculture produce, said the moratorium on recovery of debt from farmers would remain in place till December 31.
He ordered nationalised, commercial and cooperative banks to fall in line with the State's decision immediately. The freeze on repossession of loans and attachment of property as part of revenue recovery by banks would apply to all categories of loans taken by farmers and not agricultural debt alone.
The cabinet decision has effectively put a brake on the controversial move by banks to recover loans from impoverished farmers by invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act.
The banks had initiated their recovery process, which entailed attachment and auction of assets of debtors, by sending notices to thousands of farmers already burdened by the loss of income due to the floods.
The situation was most grim in Idukki district, which lost nearly 12,000 hectares of arable land to mudslides and floodwaters.
The monsoon havoc had reduced an estimated 35,000 farmers to penury in Idukki alone. More than 15,000 them had recently received recovery notices, prompting at least six farmers to commit suicide. The situation of farmers in Wayanad was equally bleak. Saddled with debt, they had been at the receiving end of aggressive moves by banks to recover loans.
The Government and the Opposition had slammed the move on the part of the creditors as inhumane and socially disruptive.
The decisive move by the State to stop the banks in their tracks came barely a day before Opposition Leader Ramesh Chennithala was set to stage a fast in Idukki demanding urgent debt relief for dispossessed farmers.
Compensation for farmers
The cabinet has also decided to allocate ₹ 85 crores to compensate farmers who suffered crop losses in the recent floods.
Mr. Vijayan said the Kerala Farmer's Debt Relief Commission (KFRDC) had doubled the benefit to distressed farmers.
The cabinet also decided to use the Chief Minister's Disaster Relief Fund to underwrite the interest (up to 9%) on recently availed agriculture loans for long-term cash crops such as rubber, coconut, coffee, cocoa and arecanut.
The cabinet also tasked the Agriculture and Planning Departments to examine whether commercial banks could be brought under the Commission.
Mr. Vijayan also blamed the Centre for not having any plan to mitigate the suffering of crores of farmers burdened by crop loss, low prices, demonitisation and the GST regime.
No comments:
Post a Comment