Financial crisis: Kerala defaults on payments to farmers and endosulfan victims

The 6,000-odd endosulfan victims in Kasaragod are the worst affected as the monthly payment due to them under the Snehasanthwanam relief scheme has been pending since April.
Image used for representational purpose.
Image used for representational purpose.

THIRUVANANTHAPURAM:  Fiscal constraints of the government are likely to deny Onam festivities to many. The unprecedented financial crisis being faced by the Kerala government has led to payment defaults, affecting the lives of thousands of people, from farmers, and school noon-meal workers to beneficiaries of various welfare schemes.

The 6,000-odd endosulfan victims in Kasaragod are the worst affected as the monthly payment due to them under the Snehasanthwanam relief scheme has been pending since April. “Its beneficiaries include children and senior citizens. Most of them are disabled or suffering from cancer and other serious illnesses, and are dependent on others for personal needs. These families are in dire straits,” says activist P Krishnan.

Bearing the brunt of the crisis are paddy farmers. Nearly 28,000 of them are yet to get payment for the grains procured by the government. The government owed a total of Rs 433 crore to 54,000 farmers. Recently, Rs 72 crore was sanctioned for 26,000 farmers. 

“We are into the next cropping season and the government is yet to give the money for the previous season. Many farmers did not sow this season owing to financial issues,” said Muthalamcode Mani, Palakkad president of Desiya Karshaka Samajam.

‘School noon-meal staff not paid since June’

The government contractors are also feeling the heat. The bill payments to government contractors are made payments through a Bill Discounting System (BDS). Under this, the government arranges loans for contractors from banks or the Kerala Financial Corporation for the bill amount. “Banks charge 10% interest and the government would provide half of it.

We have to bear 5 per cent interest for no fault of ours. The government is yet to issue this month’s order on BDS. This month, we have to make extra payments to workers as it’s festival season,” said Sunny Chennikkara, general secretary of the Kerala Government Contractors Association. The government has also defaulted on payments to contract workers and daily wagers under different programmes. Among them are 13,400-odd school noon-meal workers who have not been paid since June.

“Most of us are the lone earning members of our families. We are in a real crisis this Onam,” says S Shakunthala, state president of School Pachaka Thozhilali Sanghadana. The 1,671 Saksharata Preraks have not been paid since April.

“The government had cleared the previous backlog in payment after the suicide of a prerak. But, things are back to square one again,” said Saksharata Prerak Association state secretary A A Santhosh. July’s payment to social security and welfare fund board pension for about 50.90 lakh beneficiaries is pending.

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