VIDARBHA JANANDOLAN SAMITI
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Ref : VJAS/relief package-08 PRESSS-NOTE 11th MAY, 2008
364 FARMERS SUICIDES IN VIDARBHA IN 2008 TOO: DISTRESS IS ON RISE DUE TO GLOOMY SENSE ON COST AND CREDIT FRONT
VJAS DEMANDS PMO TO ACT OF CAG REPORT
Nagpur-11th MAY, 2008
Eknath Gawande is one 22nd farm victims of may 2008 month and fourth in the kosara in zari taluka in yavatmal district earlier in june-sept 2005 three cotton farmers committed suicides to bring vidarbha agrarian crisis in discussion .as per official reports agrarian distress in more than million of cotton farmers is at it’s peak and even official survey of CAG warn the administration that due it’s failure to provide relief in the area of cotton cost ,bank credit and non implementation of secondary support measures more rise in farm suicides in expected inwest vidarbha as 364 farmers have already committed suicides till date informed in press release by kishor tiwari of vidarbha janandolan samiti (VJAS) today.here is the monwise and district wise details of 364 farm suicides of vidarbha in 2008.
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Net result Relief Package as per CAG report
CAG certified that the money did not help mitigate the gargantuan agrarian crisis or even
reduce farmers' suicides."Farmers' suicides shot up dramatically even when the two packages were in vogue," says the report, which was tabled before the state
legislature on April 27, just hours before the end of its budget
One of the important deficiencies of the packages, as the CAG foundout, was the fact that they did not improve agricultural prices.In its observation, the implementation of recommendations of the FactFinding Committee (of Planning Commission of India) could have helped in reduction of farmers' distress and the consequent suicides.
The committee had recommended in March 2006, shortly after its visits
to the region, that the minimum support price for agriculture crops
should carry appropriate variation for the region so that it reflected
the actual input cost and was not an estimated figure.
Despite this, the CAG observes, the MSP for the four major crops of
the region declared by the Government of India during the years
2003-06 was 29-38 per cent less than the MSPs proposed by the state
agriculture price committee (SAPC) of Maharashtra Government. During
2006-07, the MSP was 31 to 40 per cent less than that proposed by the
as per CAG report now it clear that GOVT. failed on relief work front more over lost of corruption and malpractices have been observed in CAG survey but at cost and credit front administration just forced more distress farmers to commit suicides by exploiting more and more .CAG report is nothing but warning to the Indian govt. regarding mass farm suicides due accumulated distress in more than million cotton farmers of vidarbha,kishor tiwari informed
NON-PROFESSIONAL APPROACH TO ADDRESS THE ISSUE
Our distress report analysis and relief work delay has been just reproduced 1.4.34 lacs distress class A farmers were not given serious attention and not single G.R. was issued for utilization of rs.3750 crore and every scheme was made on paper will of concern deptt. And collector and Banks were free act to exploit the dying farmers , the CAG report found that the nationalized and cooperative banks not only levied interest more than the principle amount to the tune of Rs 29 crore, but also wrongly claimed it in waiver of effected six district in west vidarbha.
For instance, the seven branches of district central cooperative (DCC)bank test-checked by the surveyors had levied an interest of Rs 5.13crore as against principal of Rs 3.19crore, resulting in excess claimof Rs 1.94 crore.
The CAG found that the DCC banks and rural cooperative societies charged an interest at the rate of 17 per cent per annum instead of 14 in over four lakh accounts involving principal amount of Rs 514.64 crore. This resulted in excess claim of interest at three
per cent per annum. The penal interest of three per cent per annum works out to Rs 15.44 crore, it says. report says farmers did not benefit from interestwaiver. For, their incomes did not augment in any way.The PM package had waived interest on all agricultural loans
overdue as on June 2006 and reschedule the loans.Banks claimed a total interest waiver of Rs 824.99 crore, with the state's share being Rs 356 crore.However, as the CAG report says, the banks extended crop loans to only 4.84 lakh farmers out of a total 17.64-lakh farmers in the six most affected districts. So only about 35 per cent farmers got institutional credit, when the proposal was to reschedule the loans of 9.29 lakh cases (about 60 per cent), which had an outstanding principal amount of Rs 1369.85 crore.
The CAG says fresh crop loan disbursement actually dipped to 637.88crore in 2007 from Rs 9.29 crore in 2006, when the PM, Dr ManmohanSingh, announced the package in Nagpur.The CAG report about crop loan disbursement after relief package that it decline in the number offresh loan cases that 1,92,745 borrowers were landless farm workers
who did not require any crop loan, 26,400 borrowers had died, 25,129 farmers had sold their land (in that year), 21,125 had left villagesand 30,715 did not require any loan. The 62,807 cases were marred by disputes of lack of essential documents while in 85,975 cases the farmers had long-term loans.The CAG has objected to the fact that the government should not have waived the interest on the loans outstanding on the nearly two-lakh landless labourers.the CAG report states that the government's ban on illegal money lending did not stand before the high court.
FAILED TO MANAGED TO DISTRESS LEVEL OF DYING FARMERS OF
please look at the CAG's evaluation, it says "the possibility that agrarian distress
essentially caused by un-remunerative agriculture would start rising
again in the closing years of the package (2008-09)." It warns that
distress could increase significantly after the expiry of the
moratorium on loan recovery. now CAG has officially confirmed that not only the chief minister and prime minister in 2005 and 2006 have flopped but has raised serious issue of
THE RETURN ON INVESTMENT(ROI)
The return on investment(RoI) of a typical cotton farmer, the CAG found, was a shocking minus two per cent before the implementation of packages. Which meant a farmer was in losses the day he went for sowing of seeds. It shot up to seven per cent in the first year of the package, and then dwindled to five per cent in the second and two per cent in the
CAG REPORT – GOVT.FAILED TO ADRESS IRIGATION ISSUE
THE CAG report finds a serious problem with the micro-irrigation and
assured irrigation projects worth over Rs 2300 crore in the packages.
The PM package has a component of Rs 2177 crore to create irrigation potential for 1.6 lakh hectares in six suicide-prone districts. Of this, Rs 2085.38 crore was to fund eight major, nine medium and 65minor irrigation projects as grant from the Centre.
However, the Government of India revised in December 2006 the eligibility criteria for funding. According to the revised criteria,if the state government fails to comply with the agreed date of completion, the amount released would be treated as loan and recovered
as per usual terms of central loan recovery.The CAG report states that the possibility of completion of projects within the stipulated time is remote. "This presents the risk of Rs2085.38 crore (or 56 per cent of total package amount) becoming loan instead of grant."As the CAG's performance audit of farmers' packages finds that not
only were the packages tardy in implementation, but also mindless in
conceptualization and "inconsistent with local needs."
as per CAG report now it clear that GOVT. failed on relief work front more over lost of corruption and malpractices have been observed in CAG survey but at cost and credit front administration just forced more distress farmers to commit suicides by exploiting more and more .CAG report is nothing but warning to the Indian govt. regarding mass farm suicides due accumulated distress in more than million cotton farmers of vidarbha.
VJAS DEMANDS PMO TO ACT OF CAG REPORT
Vidarbha jan andolan samiti (VJAS) has once again asked PMO to serious importance to recently tabled CAG report on farmers relief package worth Rs.5000 crore and requested to take remedial measures to stop on going farm suicides in vidarbha ,kishor tiwari informed.
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