The Rs 60,000-crore debt waiver package, though intended to make the farming community happy, has triggered discontent among a large section of farmers. Farmers in and around the Karnal district of Punjab were among those who repaid their dues to the banks in 2007-08. However, there is a feeling of deceit. They clearly feel that have been punished for repayment. And as a result, farmers who have paid their dues in 2007-08 are already in a non-repayment mode.
The debt waiver is likely to trigger a culture of non-payment. A group of farmers pointed out that they paid back the dues to the banks by through loans from non-institutional sources including distant family members and even moneylenders. “We took a loan from another set of people to pay back the dues and this clearly indicates that we are still in debt and the waiver package is of no use,” one of them pointed out. In addition, it is not clear whether farmers who took loans for purchases of farming equipment like tractors would be eligible for the waiver package.
Cases of non-payment of dues are set to rise significantly this year. The farming community as a whole would defer payment for dues from this year onwards. “We will definitely not make our payments of dues this year as we too hope to get a dole from the government,” a farmer residing in the region said.
Meanwhile, farmers who paid their dues in the months of February and March are likely to get a refund of the paid sum from the government, as the package would be applicable for bad assets as of December 31, 2007. “The issue has been raised and no concrete decision has been taken by the government,” an insider pointed out.