The bad debts on farmers continue to mount as the Punjab Government has failed to resettle their debts even after the lapse of four months since the passing of “The Punjab Settlement of Agricultural Indebtedness Bill, 2016”.
Having cleared the “The Punjab Settlement of Agricultural Indebtedness Bill, 2016” in the Budget session, Punjab Government was to decide on two major issues for the resettlement of bad loans of farmers taken from private money lenders. The issues to be decided are the Rate of Interest (RoI) besides setting up of committees at District level and State level to decide the cases of bad debts.
So far, the authorities concerned have failed to take any steps on both fronts. Sources said the Government has not yet decided on the constitution of committees for settlement of debt disputes between farmers and money lenders.
The authorities are yet to determine the terms and conditions for constitution of committees at State level. The Government is to constitute 22 district level committees, which would be headed by a retired session judge. The committees will have a member each from money-lenders and farmer bodies.
Besides the district level committees, a State level committee is to be constituted, that would take appeals against the settlements, decided by district level committees. A retired High Court Judge would preside the committee. The issues like the terms and conditions of the appointment of the chairpersons and members of the committees, their salaries and their terms are all still pending with the concerned authorities.
Sources said the issue of determining RoI for settlement of bad debts of farmers is also pending with the Government. The file relating to the decision of the Rate of interest for settlement of disputed loans of debt ridden farmers has been making rounds in the Agriculture, Revenue and Planning departments but it is yet to be decided that who will take a final call on it.
Fixing a RoI is a big issue. In deciding the new RoI, the date for implementing the new rate will be required to be fixed. In case the new RoI is fixed, since the off-take of loan, a number of money-lenders may not get anything as the debtors’ might prove to have paid excess amount since the grant of loan.
Agriculture Minister Tota Singh says that determining the RoI for re-settlement of debts will not be a big issue. The Government has planned to keep a RoI, 2 or 3 percent above the RoI of nationalised banks and the money-lender lobby has given its nod in principle, on the RoI suggested by the government, adds Tota Singh.
As the next assembly elections are scheduled to be held in the first quarter of 2017, the Government is left with only little time to decide on the implementation of the bill and then make its benefits reach the debt ridden farmers.