With inclement weather, including untimely rain and hailstorm, badly affecting the standing crops over the past few days, the cash-strapped Punjab government Monday announced a moratorium on the repayment of loans taken by farmers from Punjab State Cooperative Agriculture Development Bank (PSCADB).

The decision was taken at a meeting chaired by Chief Minister Bhagwant Mann, who ordered the department of cooperatives to give an interest waiver to the farmers on the crop loan taken before wheat cultivation season.

Mann expressed hope that the move will provide the much-needed relief to farmers in this hour of crisis. In an official statement, Mann said the farmers can pay back this amount later after they recover from losses. He said that as a result of this move, a large number of farmers will be saved from becoming defaulters and will remain eligible to take loans for the next crop season.

On Sunday, the CM had announced enhancement of compensation by 25 per cent for the farmers.

The delay in repayment of loan by the farmers would cost the state exchequer Rs 150 crore. The state government will have to pay this interest to the PSCADB. The state’s cooperative bank has an outstanding of Rs 7700 crore out of which Rs 2600 crore is an outstanding of the previous season and Rs 5100 crore of the current season. The farmers had to repay this loan by the end of this fiscal.

During the meeting, Mann also asked the agriculture department to work on insuring the crop of the farmers. Earlier, the previous SAD-BJP and the Congress governments had not accepted Centre’s riders on crop insurance despite paying premium. The Centre had, among the several riders, stated that insurance claim would only be given if state’s 70 per cent area under cultivation has no source of irrigation. But Punjab has 14 lakh tubewells and land is irrigated with canal system.

Earlier in the day, Mann said he had issued directions for a special ‘girdawari’ (field inspection) to assess crop damage because of recent rain and ordered it to be completed within a week.

Mann on Sunday had toured rain-affected fields in Moga, Muktsar, Bathinda and Patiala districts.

Untimely rain accompanied by hail and high-velocity winds caused damage to wheat and other crops in several parts of the state.

With Mann enhancing the compensation for crop damage due to inclement weather by 25 per cent, Punjab will have to pay Rs 2,000, Rs 2,750 and Rs 9,600 per acre for damage up to 33 per cent, 75 per cent and 100 per cent respectively to each farmer.

While the girdawari report is expected in 10 days, the government will be able to work out the exact amount that will have to be paid by the government. After a whirlwind tour of villages in Moga, Muktsar, Bathinda and Patiala, Mann made the announcement on Sunday. He held a meeting on Monday to work out how the compensation will be paid.

Earlier, the state used to pay Rs 2,000 per acre for 26 to 33 per cent crop damage from its exchequer. Now, the chief minister has extended the benefit to farmers with 20 per cent crop damage as well.

For farmers with 33 to 75 per cent crop damage, the government will pay Rs 6,750 per acre. Earlier it was Rs 5,400 per acre. While Rs 4,000 will come from the State Disaster Response Fund supported by the central government, Rs 2,750 will be paid by the state. Earlier, the state had to pay only Rs 1,400 per acre.

For crop damage between 75 per cent to 100 per cent, farmers will be given compensation of Rs 15,000 per acre, out of which Rs 9,600 will be paid by the state and Rs 5,400 by the Centre.

Earlier, the compensation was Rs 12,000, out of which Rs 6,600 was paid by the state.

After the meeting, Mann said in a video that he had ordered deputy commissioners to make announcements from gurdwaras in every village before the girdawari (harvest inspection) started.

Mann said that earlier only announcements were made. Sometimes, it was only a cheque for Rs 54 per acre, he said. “We will make the issue of compensation transparent. All DCs have been ordered to make the announcements from a gurdwara a day before. Whenever the patwari will go for the girdawari, he will not sit at any special person’s house. He will make an announcement in a gurdwara and then the entire village can show him the damage. Those who have taken land on contract will be paid the compensation and not the owner of the land. Damaged houses will be reconstructed. Agriculture labourers will also be compensated,” the chief minister said.

“I want to tell the farmers who have not stepped out of their homes after the crop damage to have faith in the government and come forward. The government is your partner now,” he added.

Mann said the money would be disbursed very soon as “we believe in applying balms on wounds as and when required”.

Source - https://indianexpress.com