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Money lenders still lord over Vidharba region: CAG
MUMBAI: In 2007-08 more than six hundred distressed farmers have died in Vidharbha region as they continue to be dependent on money lenders with government relief work failing to attain its objectives.
The Comptroller and Auditor General of India (CAG) in its report said that nearly 75% of farmers were unaware of the "ban on illegal money lending" and many farmers continued to pay high interest rates despite these debts being declared illegal.
The rate of farmer suicides in India's Maharashtra state has gone up in recent years despite expensive relief schemes.
Over the past week more than nine farmers have committed suicide. Social activists said despite recent government aid packages, over 200 farmers have committed suicide in the region since January.
At least 10,000 debt-ridden farmers have committed suicide in India each year over the last decade.
Drought, a fall in crop prices and an increase in the cost of cultivation are cited as reasons for the farmers' plight.
P Chidambaram’s huge loan waiver is not likely to benefit a majority of these hapless indebted farmers, they said.
CAG report blames poor implementation and lack of co-ordination between government agencies for the failures.
There have been "serious efficiency lapses in implementation of the relief schemes".
"Considering the deficiencies noticed in the various components of the packages, underutilisation of available funds, important areas of agrarian distress not being covered under the packages, and coverage of only a fraction of distressed farmers, reduction in farmers' distress in Vidarbha region does not inspire confidence," the report said
In 2005, the Maharashtra state government announced a relief package for "farmers in distress" after the number of suicides went up from 146 in 2003-2004 to 455 the next year.
In 2006, the central government also announced a "special rehabilitation package" which covered the six most affected districts in the Vidarbha region of Maharashtra and 25 other districts from four different states. Vidarbha is the area of Maharashtra where the farmer suicide problem is worst.
There have been also instances of banks claiming higher interest rates than permitted, CAG report adds.
In many cases, banks did not give out fresh loans to farmers which meant they ended up without having enough seeds and other farming assistance. The worst-hit states for farmer suicides are Andhra Pradesh,
MUMBAI: In 2007-08 more than six hundred distressed farmers have died in Vidharbha region as they continue to be dependent on money lenders with government relief work failing to attain its objectives.
The Comptroller and Auditor General of India (CAG) in its report said that nearly 75% of farmers were unaware of the "ban on illegal money lending" and many farmers continued to pay high interest rates despite these debts being declared illegal.
The rate of farmer suicides in India's Maharashtra state has gone up in recent years despite expensive relief schemes.
Over the past week more than nine farmers have committed suicide. Social activists said despite recent government aid packages, over 200 farmers have committed suicide in the region since January.
At least 10,000 debt-ridden farmers have committed suicide in India each year over the last decade.
Drought, a fall in crop prices and an increase in the cost of cultivation are cited as reasons for the farmers' plight.
P Chidambaram’s huge loan waiver is not likely to benefit a majority of these hapless indebted farmers, they said.
CAG report blames poor implementation and lack of co-ordination between government agencies for the failures.
There have been "serious efficiency lapses in implementation of the relief schemes".
"Considering the deficiencies noticed in the various components of the packages, underutilisation of available funds, important areas of agrarian distress not being covered under the packages, and coverage of only a fraction of distressed farmers, reduction in farmers' distress in Vidarbha region does not inspire confidence," the report said
In 2005, the Maharashtra state government announced a relief package for "farmers in distress" after the number of suicides went up from 146 in 2003-2004 to 455 the next year.
In 2006, the central government also announced a "special rehabilitation package" which covered the six most affected districts in the Vidarbha region of Maharashtra and 25 other districts from four different states. Vidarbha is the area of Maharashtra where the farmer suicide problem is worst.
There have been also instances of banks claiming higher interest rates than permitted, CAG report adds.
In many cases, banks did not give out fresh loans to farmers which meant they ended up without having enough seeds and other farming assistance. The worst-hit states for farmer suicides are Andhra Pradesh,
