Patna, (Bihar Times): Bihar would not be benefited much by the waiving
of farmers’ loans. Hours after the presentation of budget in Parliament
Bihar’s agriculture minister told the state assembly
that loans worth Rs 800 crore of Bihar farmers would
be waived against the total national figure of Rs
60,000 crore. Thus the share of Bihari farmers who
have taken loan from the banks is just 1.33 per cent.
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As most of the farmers to be benefited belong to
western and southern states where banking institutions are prompt in credit delivery to the farmers particularly for the cash crop cultivation.
Interestingly, ninety percent population of the state is dependent on agriculture and credit deposit ratio for rural Bihar is about 24 percent, one of the lowest in the country. The most ruralised state wouldn’t have much effect of the historical loan waiver scheme for farmers announced in the recent budget.
“The attitude of Banks towards farmers is mainly responsible for low credit deposit ratio in Bihar” admitted the agriculture minister. So whole agriculture credit system is dependent on private moneylenders who charge exorbitant ten to fifteen percent interest per month. The insurance coverage is only for three percent of the farmers and that is mostly for those who have taken some agriculture loan from the bank.
“Recently distributed input subsidy in flood affected areas was a better targeting for helping farmers than simply waiving the loans. Small and marginal farmers never visit banks for agriculture loan at least in rural Bihar” expressing is anguish narrated Rajesh Nandan a young farmer from Samartha village of Samastipur.” Its simply a political gimmick and it won’t help in changing the face of rual Bihar at least.” he further added.
comments...
I don’t understand the budget . Someone please explain it to me . This budget is said to be helping poor with so many means and one of them is waving off the 60,000 crores loans . This loan amount waiver will benefit the poor and everybody knows many people in Bihar are poor . Still from this loan waiver , Bihar is only getting 1.33 % . How come ? FM is saying it is going to poor and poorest state is not benefited out of it ??? This is ridicules . I request FM to review his stand and find out some better ways to help poor which will really reach to the needy person .
Sanjay Kumar
sanjay.kumar@oman-pp.com
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