Farmer organisations have urged the State government to allocate ₹ 1,000 crore from the Wayanad Package to the debt-ridden farming community in the district.
Chief Minister Pinarayi Vijayan had announced a ₹7,000-crore special package in 2021 for the comprehensive development of Wayanad in five years.
Various financial institutions in the district, including Kerala Bank, have issued revenue recovery notices to more than 10,000 farmers, invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act after a moratorium announced by the government on farmer loans ended on December 31, M. Surendran, president, Haritha Sena, said.
Though the moratorium had been announced in 2018 for a year, it was extended to December 31 2021, citing reasons such as recurring floods and the pandemic, he added.
“Farmers have to pay only 4% interest if they repay their debt in time to nationalised banks. However, they will be forced to pay more than 14%, including penal charges, if the debt is repaid after the moratorium period,” said E.P. Philipkutty, president, Wayanad Karshaka Kootayma. The farming community is in crisis owing to the sharp fall in prices of annual crops like ginger, yam, and plantain this year and huge crop loss of coffee, pepper, and rubber owing to climate vagaries, he said.
Since farmers are not in a position to repay the huge debt, including penal interest, the government should consider allocating ₹1,000 crore from the Wayanad Package for writing off interests on loans during the moratorium period and restructuring loans, Mr. Surendran said.
