Bhopal: Rahul Gandhi’s announcement in MP on Wednesday has made the loan waiver a big issue not only for the state polls but also for the Lok Sabha polls. Congress national president Rahul Gandhi’s announcement of waiving off farmers’ loan, if Congress comes to power, has shot up the political temperature in MP. Rahul’s announcement may be totally political in nature but it has put the state government in troubled waters.
Farmers’ loan is estimated to be around Rs.70, 000 crore, covering public sector, cooperatives and private banks, in the state. Such a huge waiver may disturb the states’ budget. Looking at the impact of Rahul’s announcement government is now busy crunching numbers on loans.
While Cooperatives minister Vishwas Sarang had clearly said on Wednesday that the government is already giving interest-free loan and several other benefits to the farmers so there is no question of loan waiver. But according to the sources the BJP government in MP is has started to assess the financial burden accompanying waiver for loans up to Rs 25,000.
The government is afraid that Congress may attract farmers on the issue of loan waiver. As an estimated 67 lakh farmers had taken loans. But the state government, considering upcoming elections in the state, is not willing to allow them to go into Congress’ fold easily. But at the same time it has to figure out how to manage it finances as after waving off the loans it would have to repay the loans to these banks.
While Congress media committee chairman Manak Agarwal said complete loan of farmers, without using any formula, would be waived off if Congress comes to power in the state. Agarwal said that they had promised for loan waiver, which would be fulfilled. On the other hand many believe, it would be difficult for the Congress, if it comes to power in the state, to waive off full loans.
Announcement concerns bankers
Public sector banks offer loans to farmers at 3% interest. These banks renew loan every year by getting interest deposited. Cooperative banks give interest-free loan to farmers. A farmer gets next loan only when he pays the principal amount borrowed. The bankers of these sectors fear that the farmers who were repaying the loan, will now not repay the loans, post Gandhi’s announcement.
Farmers did not show interest in ‘Rin Samadhan Yojana’
The state government had launched ‘Rin Samadhan Yojana’ for the farmers who had turned loan defaulters. The scheme gives the facility of waiving off interest on loan on not paying principal loan amount on time. But the said scheme has failed to attract the farmers.
Loan waivers different measures
Congress government in Punjab had waived off farmers’ loan up to Rs 25000. The same formula is being used in Karnataka. BJP during Uttar Pradesh assembly polls, had raised loan waiving issue for the farmers. The BJP government in Uttar Pradesh has waived off farmers loan up to Rs 1 lac. Loans up to Rs 50,000 have also been waived off in Rajasthan. Farmers loan have also been waived off in Maharashtra.
