Memorandum to AP Chief Secretary on Loan Waiver

140622 Chief Secretary Telangana final Download

Rytu Swarajya Vedhika has a submitted a memorandum with the following demands.

  1. As a first measure, the Government must delink the loan waiver proposal from distribution of Kharif loans for the current agricultural season and should immediately take action to disburse crop loans  without delay to all the farmers including Tenant farmers.
  2. While the farming community is in deep crisis due to indebtedness, loan waiver is not a solution to end the crisis. The crisis is still continuing even after the debt waiver and relief extended during 2008.   A comprehensive solution lies in bringing in policy changes related to all aspects of agriculture (Credit, input support, extension and marketing) as well as pursuing the land reforms agenda with renewed vigour to bring about a meaningful change in the agriculture sector to help close to 85% ofsmall and marginal farmersto secure and sustain their livelihoods. . A piecemeal, myopic solution to the problem in the form of loan waivers alone is a grossly inadequate solution to the larger, complex set of problems ailing the farming sector in the State.
  3. Tenant farmers, dalits, tribal and women farmers who received lands under various land distributionschemes do not have access to institutional credit. They are taking loans from private money lenders, input dealers or Microfinance Institutions at a higher interest rate (as high as 60% Rs. 5 per Rs. 100 per month).  These farmers  are in deep crisis and constitute a large chunk of farmers committing suicides. This loan waiver is of no help  to them.
  4. Government should make immediate effort to increase access to institutional credit to real cultivators.  One of the problems often expressed by the bankers in giving crop loans to these farmers is the lack of a guarantee for repayment. The state government should establish a Credit Guarantee Fund for small and marginal farmers which can give collateral security to the tenant farmers.
  5. All the real cultivators who are not covered under institutional credit are to be organised into cooperatives and linked to the institutional credit.  All their high interest private loans can be swapped with low interest bank loans.
  6. Loans of all farmers who have committed suicides since 1997 have to be waived and their private loans be swapped with no interest bank loans.
  7. Government should introduce special budget for agriculture with an allocation of atleast 10% of the total budget.
  8. Government must ensure that the loan waiver does not benefit non-cultivating, absentee land owners who have other major sources of income or livelihood and have taken loans in the name of agriculture. Specific mechanisms must be evolved to identify and eliminate the above categories of landowners from the purview of the loan waiver scheme. Further, steps must be taken to identify the actual cultivators and update the revenue records accordingly. Government must also actively explore mechanisms (e.g. setting up a separate Committee) for evolving a set of criteria to enable eligible farmers benefit from the loan waiver scheme in a meaningful manner.
  9. Government should also take care that the loan waiver does not apply to ineligible loanees through the following measures
    1. Restricting the loan waiver only to crop loans
    2. In case government decides to waive short term and allied sector loans, it should be restricted to small and marginal farmers only (up to 4 ha in rainfed areas, 2 ha in irrigated areas)
    3. Exempting Hyderabad district from the purview of the loan waiver. A thorough enquiry should be conducted and if need be waiver can be extended in the second phase. Pending this, the crop loan waiver up to one lakh for all farmers in the other district should be done immediately.
  10. Government should with stain from any effort to impose additional taxes or issue bonds and transfer the burden on to people or the next government.

Complaint to EC asking right to move to court on unfulfilled promises from Manifestos

140407 on political parties-1

EC complaint press release telugu

To

The Chief Election Commissioner                                                                                           07-04-2014

Election Commission

New Delhi

 

Respected sir

Sub: Poll promises of political parties request to enforce model code of conduct reg.

Ref: 1. TDP, TRS, YSRCP Manifestos for 2014 Assembly elections and promises by Sri. Chandra Babu Naidu, K. Chandra Sekhara Rao and YS Jagan and their party leaders during election campaign

2. Model Code of Conduct issued by Election Commission section VIII on Manifestos

As the elections are approaching we the Farmers Organisations working with lakhs of farmers in Andhra Pradesh (including Telangana) find that the political parties are making poll promises to woo the voters violating the model code of conduct issued by the EC.  Some of the promises made are impossible to fulfil and have huge burden on the exchequer.

In this situation, we request the Election Commission to immediately intervene and order all the political parties

  • to detail out the terms and conditions of all poll promises and the budgetary implications and sources of the funds as per the Model Code of Conduct issued by Election Commission section VIII on Manifestos based on Supreme court judgement.
  • As the voting would be influenced by these promises we also request you to kindly issue guidelines to ensure that the election promises are fulfilled by the Party/Party alliances which forms the government, otherwise the voters can move to court requesting the implementation of the same.
  • If the political parties are not abiding the model code of conduct regarding the manifestos, we request the Election Commission to cancel their party registration and bar their leaders from contesting in further elections.

Thanking you sir

Yours sincerely

TDP poll promise: Farm Loan and Women SHG loan Waiver is impractical

Telugu Desam Party has been promising loan waiver to farmers and DWRCA women self help groups immediately after coming to power.  On 24th March, TDP leader has released the Manifesto for 2014 local body elections and promised to waive the loans of Farmers and SHG women.   These promises Rs. 90,146.87 crore (Rs. 67,224.28 cr of farm loans and Rs. 22,922.59 cr of Credit to Women Self Help Groups) will cost about 50% of the total budget (Rs. 1,83,129.00 crores) proposed for the year 2014-15.  While indebtedness among farmers itself is high, institutional credit to agriculture is only around 21%.  Most of the institutional credit only goes to land owners and not the real cultivators who take land on lease and cultivate. In this regard we feel that spending half of the budget to raise hopes and votes from many and finally helping only few is completely unjustified.

The TDP leader is also asking farmers and women self-help groups not to repay the loans as he would waive all of them when comes to power. This will also affect the credibility of the farmers and women SHGs and effect their Credit worthiness.

A.      On Farmers Loan Waiver

  1. The total loans to farmers planned during 2013-14 were Rs. 67,224.28 crore against which Rs. 38,491.65 crores were disbursed till 30th September, 2013. Rest would be distributed in the next during the rabi season (October, 2013 to March, 2014).

Agriculture Credit during 2013-14 (Rs. In Crores)

  Target 2013-14 Achieved till 30th sept 2013
Crop loans 49,988.69 28,820.19
Term loans 7217.50 6276.79
Agril allied loans 10018.08 3394.67
Total 67,224.28 38,491.65

Source: State Level Bankers Committee, http://www.slbcap.nic.in

If this target has to be met, the total budget requirement would be around

The loans are also not evenly or equitably distributed. Based on the data available the variations as follows. The region which is going to be formed as Andhra Pradesh (13 districts) had 61% of cultivated area while the total agriculture credit given till 30th September, 2013 is 69% whereas the state of Telangana which has 39% area got only 31% of the agricultural credit.

Regional Variation in Agriculture Credit (2013-14)

Region/New State 

Total Cropped area

Total Agriculture Credit

in ha

% to total

Target

% to total

Achieved*

% to total

Andhra Pradesh

7662000

61%

47016.95

70%

26486.21

69%

Telangana

4899001

39%

20207.33

30%

12005.44

31%

Total

12561001

100%

67224.28

100%

38491.65

100%

* till 30th September, 2013

Variations are also seen between districts within the two going to be formed states. For example in the 13 districts which are going to be formed as Andhra Pradesh the distribution is as follows. The four districts of Krishna, Guntur, East and West Godavari districts which have only 36% of the cultivated area got about 50% of agriculture credit.  Some people will get undue advantage compared to others.  The details of others districts is given in the annexure.

Regional variation within the newly forming state of Andhra Pradesh (2013-14)

Districts % cultivated area % agril credit target % agril credit achieved
Utterandhra: Srikakulam+Vijayanagaram+Vishaka patnam

14%

11%

9%

Coastal: Krishna+ E& W. Godavari+Guntur

36%

50%

49%

Coastal: Prakasham+ Nellore

14%

14%

11%

Rayalaseema: Chittor+Kadapa+Ananthpur+Kurnool

36%

26%

31%

 

The data of 2012-13 (annexure A) also showed the same trend.

  1. The access to institutional credit is as low as 21% in the combined state of Andhra Pradesh. The government estimation is that the state has 40 lakh tenant farmers and they do not have access to institutional credit. AP government has enacted Loan Eligibility Card scheme Act which identifies Tenant Farmers and issues Identity card which can be used to get access to credit. During 2013-14 only 4.43 lakh cards were issued and among them only 20% of them got access to crop loans. Rest of the farmers had to depend on the private loans at higher rates.
  2. Before going for 2009 elections the UPA government throughAgricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 has waived about Rs. 52,000 crores across the country.  In AP, the total number of farmers who benefited from the scheme was 77,55,227 and the total loan waiver and relief given to them was Rs 11,353.75 crore.  CAG found that in AP, a sum of Rs 40.76 lakh went to ineligible beneficiaries (132 accounts) and reimbursement was made for an amount of Rs 26.55 lakh though loans had not been disbursed (96 accounts).

B. Loans to DWRCA/Women Self Help Groups

  1. Total loans to Women SHGs in Andhra Pradesh are Rs. 22,922.59 crore.
Loans to Women SHGs In crore (as on 30th September, 2013)
Total out standing Rs. 21,245.19
Over dues Rs. 946.15
Non Performing Assets (NPAs) Rs.731.25
Total Rs. 22,922.59

http://www.slbcap.nic.in

The TDP leader also promised the waiver of loans to women self help groups and is asking them not to pay the loans in every meeting.

TDP should make clear

a. Whose loans and what loans will waived.   Otherwise many farmers are now not paying their dues and at the end they all end up in problems.

b. what would be the quantum of loans that would be waived and what is the source of the resources.

Annexure A

The Agriculture Credit Target and Disbursed during 2012-13

Districts Net cropped area % to total Target Disbursed % of achivement % to total

1

Srikakulam

405000

3%

1003.27

1297.49

129.33%

3%

2

Vijayanagaram

373000

3%

650.85

976.44

150.03%

2%

3

Vishakapatnam

315000

3%

666.71

1257.18

188.56%

3%

4

East godavari

598000

5%

2862.44

5089.93

177.82%

10%

5

West godavari

618000

5%

3074.45

5157.56

167.76%

10%

6

Krishna

716000

6%

2178.14

2975.34

136.60%

6%

7

Guntur

796000

6%

3660.46

4597.55

125.60%

9%

8

Prakasham

628000

5%

2039.86

2940.49

144.15%

6%

9

Nellore

429000

3%

1418.68

2316.99

163.32%

5%

10

Chittor

404000

3%

1767.24

2360.35

133.56%

5%

11

Kadapa

473000

4%

1656.70

2056.82

124.15%

4%

12

Anantapur

901000

7%

2476.06

2704.79

109.24%

5%

13

Kurnool

1006000

8%

2049.00

2361.68

115.26%

5%

14

Mahaboobnagar

917000

8%

1980.00

1061.92

53.63%

2%

15

Medak

554000

4%

945.00

1474.03

155.98%

3%

16

Nizamabad

420000

3%

1668.00

1255.41

75.26%

3%

17

Adilabad

634000

5%

920.00

2046.19

222.41%

4%

18

Karimnagar

563000

4%

1688.00

2046.19

121.22%

4%

19

Warangal

557000

4%

1345.00

1436.43

106.80%

3%

20

Khammam

439000

3%

1055.77

1514.07

143.41%

3%

21

Nalgonda

585000

5%

1351.38

1684.31

124.64%

3%

22

Ranga reddy

230000

2%

669.47

1059.62

158.28%

2%

23

Hyderabad

100%

0%

1.30

434.42

33416.77%

1%

Total

12561001

101%

37127.78

50105.2

134.95%

 


Total Agriculture credit to Farmers during 2013-14

Name of the District 

Total Cropped area

Crop Loans (Rs. In Crore)

Agrl.Term Loans (Rs. In Crore)

Agrl.Allied (Rs. In Crore)

 

Total Agriculture loans (Rs. In Crore)

 

in ha

%

Target

achieved

% to total

Target

Achieved

% to total

Target

Achieved

% to total

Target

% to total

achieved

% to total

Andhra Pradesh 

1

Srikakulam

405000.00

5%

1435.80

819.44

4%

495.74

129.21

4%

132.42

60.09

3%

2063.96

4%

1008.74

4%

2

Vizianagaram

373000.00

5%

1000.00

370.00

2%

180.00

60.05

2%

350.00

141.45

6%

1530.00

3%

571.50

2%

3

Visakhapatnam

315000.00

4%

800.10

699.33

3%

452.50

128.03

3%

160.29

70.58

3%

1412.89

3%

897.94

3%

4

East Godavari

598000.00

8%

4765.73

2356.78

11%

463.81

510.64

14%

1224.98

234.70

10%

6454.53

14%

3102.12

12%

5

West Godavari

618000.00

8%

4374.08

3025.54

15%

411.90

353.71

10%

1452.05

157.67

7%

6238.04

13%

3536.92

13%

6

Krishna

716000.00

9%

3049.39

2026.06

10%

453.80

260.75

7%

728.65

304.13

13%

4231.84

9%

2590.94

10%

7

Guntur

796000.00

10%

5191.61

2649.77

13%

210.71

579.90

16%

980.70

443.06

20%

6383.01

14%

3672.73

14%

8

Prakasam

628000.00

8%

2600.32

1241.90

6%

747.38

319.68

9%

66.42

23.91

1%

3414.13

7%

1585.49

6%

9

Nellore

429000.00

6%

2402.84

893.45

4%

142.01

262.35

7%

460.38

144.63

6%

3005.22

6%

1300.43

5%

10

Chittoor

404000.00

5%

2044.87

1597.00

8%

109.99

168.29

5%

577.60

395.22

17%

2732.46

6%

2160.51

8%

11

Kadapa

473000.00

6%

2004.60

1260.11

6%

253.90

605.92

16%

563.20

47.03

2%

2821.70

6%

1913.06

7%

12

Ananthapur

901000.00

12%

3127.31

2085.56

10%

290.49

84.19

2%

123.38

144.08

6%

3541.17

8%

2313.83

9%

13

Kurnool

1006000.00

13%

2752.00

1505.00

7%

189.00

228.45

6%

247.00

98.55

4%

3188.00

7%

1832.00

7%

 

Total

7662000.00

100%

35548.65

20529.94

 

4401.23

3691.17

 

7067.07

2265.1

 

47016.95

 

26486.21

 
Telangana 

1

Mahabubnagar

917000.00

19%

2405.70

1120.16

14%

452.01

298.07

12%

137.00

104.13

9%

2994.71

15%

1522.36

13%

2

Medak

554000.00

11%

1134.00

740.19

9%

198.00

203.85

8%

126.00

91.21

8%

1458.00

7%

1035.25

9%

3

Nizamabad

420000.00

9%

1921.00

950.25

11%

482.00

210.08

8%

708.00

89.86

8%

3111.00

15%

1250.19

10%

4

Adilabad

634000.00

13%

1656.50

704.05

8%

114.33

30.00

1%

19.79

24.82

2%

1790.62

9%

758.87

6%

5

Karimnagar

563000.00

11%

1772.40

1033.33

12%

473.26

411.31

16%

267.91

177.95

16%

2513.57

12%

1622.59

14%

6

Warangal

557000.00

11%

1800.00

985.31

12%

210.00

71.15

3%

280.00

74.13

7%

2290.00

11%

1130.59

9%

7

Khammam

439000.00

9%

1598.34

1020.99

12%

192.15

205.05

8%

997.79

279.64

25%

2788.28

14%

1505.68

13%

8

Nalgonda

585000.00

12%

1445.41

778.92

9%

456.84

322.83

12%

114.92

78.09

7%

2017.17

10%

1179.84

10%

9

Ranga Reddy

230000.00

5%

706.70

765.86

9%

237.68

229.05

9%

299.60

135.66

12%

1243.98

6%

1130.57

9%

10

Hyderabad

1.00

0%

0.00

191.19

2%

0.00

604.23

23%

0.00

74.08

7%

0.00

0%

869.50

7%

TOTAL

4899001.00

 

14440.05

8290.25

 

2816.27

2585.62

 

2951.01

1129.57

 

20207.33

 

12005.44

 

Andhra Pradesh

7662000.00

61%

35548.65

20529.94

71%

4401.23

3691.17

59%

7067.07

2265.10

67%

47016.95

70%

26486.21

69%

Telangana

4899001.00

39%

14440.05

8290.25

29%

2816.27

2585.62

41%

2951.01

1129.57

33%

20207.33

30%

12005.44

31%

Total

12561001.00

 

49988.70

28820.19

7217.50

6276.79

10018.08

3394.67

67224.28

38491.65

 

http://www.slbcap.nic.in