When farmers got Rs. 1 loan waiver

By TheHindu on 14 Sep 2017 | read

Over 17,260 farmers in Uttar Pradesh have received loan waiver certificates for only Rs. 1,000 or less under a scheme in which the BJP government had promised to waive farm loans of up to Rs. 1 lakh.

Of the 17,262 farmers, 4,814 got loan waivers of amounts between Rs. 1 and Rs. 100, while 6,895 received waivers of amounts between Rs. 100 and Rs. 500 and another 5,553 got waivers between Rs. 500 and Rs. 1,000.

Under the first phase of its farm loan waiver scheme, the BJP government said it had so far distributed loan waiver certificates amounting to Rs. 7,371 crore of more than 11.93 lakh farmers in the State.

According to a statement issued by the government, 41,690 farmers have received loan waiver certificates of Rs. 1,000-10,000 while the largest chunk, 11.28 lakh farmers, received waiver certificates of more than Rs. 10,000 each.

The government was forced to issue a clarification after criticism that some farmers received loan waiver certificates of inconsequential amounts under the loan waiver scheme.

A farmer in Hamirpur’s Maudaha tehsil, Shanti, was shocked to receive a loan waiver certificate of Rs. 10.37 even though she had a debt of more than Rs. 50,000.

Some farmers also reportedly received waiver certificates of less than Rs. 1, provoking the Samajwadi Party to accuse the Yogi Adityanath government of “cheating and humiliating” farmers.

‘It’s interest component’

Pressed to explain the low amounts of loan waiver in some certificates, the government issued a vague clarification. It said that apart from the loans, the interest outstanding too had been waived. “Due to this, in some cases the amount reflected is extremely low,” the government said.