While the government is trying to increase the area under paddy cultivation through new initiatives, for Kuttanad farmers its a tough way forward in the absence of any tangible help from the State administration.
Most farmers are yet to get the price for the paddy procured by the Supplyco. The cash crunch triggered by the recent demonetisation of high-value currency notes has added to their woes, as they are unable to repay the loans that are due in November and December.
Over 14,700 farmers in Alappuzha district had registered with Supplyco for the second paddy crop in 2015-16 under the government’s procurement scheme. A sum of Rs.13.97 crore has been disbursed so far and Rs.89.25 crore is still pending, the Supplyco paddy payment officer told The Hindu . A similar situation exists in other districts as well.
Centre-State share
The procurement price consists of the Central share of Rs.14.70 and the State share of Rs.7.80 per kg of paddy. The Central share till November 5 has been paid whereas the State share has not been paid at all for the second crop.
“Many of the farmers are in distress as they have no money to take up farming operations,” says Kuttanad Vikasana Samithy Executive Director Thomas Peelianikkal. Operations for the next crop has already begun.
“Farmers are at the receiving end of the monetary reforms ushered in by the Centre. Most of the farmers have taken agricultural loans at an interest rate of 4 per cent. They are not in a position to repay the loans that were due for repayment in November and December owing to non-availability of cash from banks,” Fr. Peelianikkal said.
Penal interest
“Non-repayment would be liable for penal interest and compound interest, which would come around 12 per cent. Penal action has been postponed in the aftermath of the currency demonetisation only in the case of loans with monthly instalments of repayment and not for the one-time annual repayment scheme to which most farmers in Kuttanad have subscribed,” he said.
The farmers are in no position to avail themselves of gold loans as an emergency measure as there are restrictions on cash transactions. “The present loan repayment regime will affect the farmers badly as they could be liable for penal action for no fault of theirs,” Fr. Peelianikkal said.
He demanded that the farmers be permitted to repay the loans without penalty till March 31, under the prevailing conditions. A petition in this connection has been forwarded to Union Finance Minister Arun Jaitley and a reply is being awaited.
