Farmer organisations in Wayanad district have urged the government to adopt steps against the move of financial institutions, including nationalised banks, to invoke the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act against those who have availed farm loans.
It is reported that financial establishments, including Kerala Bank, started revenue recovery proceedings invoking the SARFAESI Act in various parts of the district. As many as 2,000 revenue recovery notices have been issued to farmers in Pulpally, Mullankolly and Poothady grama panchayats by invoking the Act.
According to the norms of the SARFAESI Act, agricultural land did not come under the purview of the Act, but the banks were now intimidating the debt-ridden farming community by invoking the Act, said P.N. Sudhakara Swamy, convener of Haritha Sena. The government should intervene in the issue and adopt legal action against such banks, said Mr. Swamy.
Successive governments announced a moratorium on the recovery of farmers’ loans by saying that it would give interim relief to the farming community, but it was only an eyewash, as it would not make any positive change in the lives of impoverished farmers, he said. The farmers were forced to pay interest during the moratorium period and it burdened them, he added. As the farmers were not in a position to repay the huge debt, including the penal interest, the bankers should consider either restructuring the loans by exempting the interest of the loan or at least writing off the interest on their loans during the moratorium period, he said.
The burden of the community increased further due to the impact of the pandemic and the lockdown-like situations, said Karshika Purogamana Samithi chairman P. Lakshmanan.
The government should either write off their loans, including non-agricultural loans, or waive the interest for five years, he said. Only that would help farmers tide over the crisis caused by declining crop prices and the crop loss in the recent floods, he added.
Wayanad District Collector A. Geetha said the issue would be brought to the attention of the government. The district administration would also try to organise a one-time settlement to address the issue, she added.
