Has the Maharashtra Government Formed a Nine-Member Panel to Address Farm Loan Waivers?
Synopsis
Key Takeaways
Mumbai, Oct 30 (NationPress) The Maharashtra government has established a nine-member committee aimed at analyzing and proposing solutions for the politically sensitive topic of farm loan waivers. This committee will be led by the retired bureaucrat and current CEO of the Maharashtra Institution for Transformation (MITRA), Pravin Pardeshi.
The official government notice reveals that the committee comprises additional chief secretaries from various departments including revenue, finance, agriculture, cooperation, and marketing, in addition to representatives from the Maharashtra State Cooperative Bank and the Bank of Maharashtra.
This panel is expected to deliver its recommendations within six months, detailing both immediate and long-term strategies to alleviate the burden on indebted farmers. This initiative comes amidst ongoing protests in Nagpur led by Bachchu Kadu, head of the Prahar Sanghatana and a former minister, who is advocating for an immediate farm loan waiver.
During the monsoon session, the then Agriculture Minister, Manikrao Kokate, had indicated the government's intention to form a committee to initiate a “radical change” in the lives of farmers and liberate them from escalating debts. Although this announcement was made on July 18, the formal notification was released today, coinciding with Kadu’s intensified protests.
Kadu welcomed this government action but emphasized that only genuinely needy farmers should qualify for the waiver. He stated, “Farmers who are financially stable—government employees, pensioners, or businessmen farming for tax benefits—should be excluded. With Digital India, identifying the true beneficiaries is straightforward.”
He urged for an unconditional waiver of all loans for needy farmers, including a seven-year grace period for those who regularly repay loans. The waiver should encompass not only crop loans but also medium-term and development loans related to polyhouses, shade nets, irrigation, and land enhancement.
Kadu also called for a 20 percent subsidy on the Minimum Support Price (MSP) for agricultural products, a Rs 5 lakh housing subsidy for rural families in line with urban standards, and the inclusion of all farming expenses—from sowing to harvesting—under the Maharashtra Rural Employment Guarantee Scheme.
Additionally, he demanded the cancellation of the Nagpur–Goa Shaktipeeth highway, a Rs 6,000 monthly honorarium for the disabled, widows, women, and orphans, along with distinct welfare policies for shepherds and fishermen. He also sought a permanent resolution to the salary issues of Gram Panchayat employees.
Kadu proposed fair returns for farmers, advocating for a Fair and Remunerative Price (FRP) of Rs 4,300 per tonne for sugarcane at a 9 percent recovery rate, Rs 40 per kg for onions without export restrictions, and a minimum milk price of Rs 50 per litre for cow’s milk and Rs 65 for buffalo milk. “The government must ensure equitable pricing and adopt FRP and revenue-sharing models in the milk sector,” he stated.