CHANDIGARH: Facing pressure to exempt farmers from paying loans after the BJP government in Uttar Pradesh decided to waive loans of up to Rs 1 lakh, Punjab chief minister Amarinder Singh has set up an expert group to assess the quantum of agricultural debt and suggest ways for crop loan waiver.
Dr T Haque, former chairman of Commission for Agricultural Costs and Prices, has been appointed the chairman of the Group, which has been asked to submit its report within 60 days. The two other members of the group are Dr Pramod Kumar Joshi, director – South Asia of International Food Policy Research Institute, South Asia Regional Office, and Dr BS Dhillon, vice-chancellor of Punjab Agricultural University in Ludhiana.
A notification issued by additional chief secretary (development) stated that the group would be assisted by state government officials, including additional chief secretary (development) and principal secretary of finance department.
Dr Balwinder Singh Sidhu, commissioner and director of agriculture department will assist the group as convener. He will convene meetings of the group, which may include officers from the banking sector, including chief general manager of NABARD (Chandigarh) and convener of State Level Bankers’ Committee.
There are 10.57 lakh cultivators in Punjab and 18 lakh farmers who own land, and almost all of them are under debt. The total agricultural loan, which the government proposes to waive, is estimated to be Rs 35,000 crore. Many debt-ridden farmers have committed suicide in the past few months.
Besides assessing the total amount of credit including institutional and non-institutional credit availed by different categories of farmers, the group will assess the quantum of bad loans or debt and suggest methods for remission of debt. It will also suggest ways and means to raise resources for the debt waiver, the notification said.
The Punjab Mandi Board will provide both secretariat assistance and financial support including payment of allowance to the non-official members for effective and proper functioning of the group.