Bad loans of farmers in Gujarat have almost quadrupled in 4 years, consistent with the latest banking document.
Farmers’ representatives and specialists say that the records depict the misery experienced by using farmers. They say this is evidence that farmers’ earnings have fallen to the extent that they’re not able to repay their loans.
According to the record of State Level Bankers Committee (SLBC) for the October – December region of the monetary 12 months 2018-19, total bad loans measured in phrases of gross Non Performing Assets (NPA) stood at Rs five,536 crores, up from Rs 1,474 crore recorded within the corresponding zone in monetary 2014-15.
NPA for crop mortgage, or loans to satisfy the everyday necessities – together with costs of seeds, fertilizers, pesticides – has risen from Rs 528 crore to Rs 2,156 crore and NPA for time period loan – used to buy tractors and create belongings for farmers — stands at Rs 3,380 crore towards Rs 946 crore witnessed in the corresponding region in 2014-15.
“The figures of NPA correctly mirror farmers’ distress. If steps aren’t taken to improve farmers’ incomes, instances of suicides will upward thrust notably, or they may turn violent,” stated Sagar Rabari, founder president of Gujarat Khedut Ekta Samiti.
He attributes the trend to the dual effect of growing enter charges and stagnating or falling incomes. “When farmers had been getting Rs 1, three hundred – 1,400 in line with 20 kg of cotton, their input expenses were to the song of Rs 500-six hundred according to 20 kg. Now farmers are getting approximately Rs 1,000 in keeping with 20 kg, and their cost is likewise close to their promoting rate. They are barely capable of getting better their price. Under such circumstances, it’s far apparent that they may be now not able to repay loans and therefore, NPA is growing,” said Rabari.
Economist Hemantkumar Shah said that the present situation makes a case to waive off farm loans, that have grown to become awful and on the same time, efforts should be made to boom the profits of farmers, which isn’t going on.
“If the state authorities decide to waive off farm loans, it isn’t always greater than three according to cent of the country finances. Steps along with depositing Rs 2,000 in financial institution money owed of farmers will now not improve farmers’ incomes. This isn’t always a sustainable answer,” said Shah.
Rabari said that indiscriminate import of meals merchandise and reduction in exports have additionally reduced farmers’ profits.