State's waiver won't cover 'small' loans of 17.5 lakh Maharashtra farmers

Mumbai: The Maharashtra government's ambitious loan waiver scheme has left out the weakest section of farmers in the state.

There are nearly 17.5 lakh small and marginal farmers in the state who have taken loans of nearly Rs 2,150 crore in the last two years from government-recognized moneylenders. However, their outstanding loans will not be covered in the Rs 34,022 crore loan waiver scheme announced by the chief minister. Farm activists say the government decision has left a large section of needy farmers in the lurch.

Data accessed by TOI shows there are over 12,000 licensed moneylenders in the state who gave out loans amounting to Rs 893 crore in 2015-16 and Rs 1,254 crore in 2016-17. An official said that nearly 40% of farmers in the droughtand suicide-prone areas of Vidarbha and Marathawada rely on moneylenders for crop loans. These farmers have extremely small land holdings, which is one of the key reasons for them not being eligible for bank loans--banks typically keep plots as mortgage against agricultural loans. Read More.

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