Banks refusal to give interest free crop loans sparked outrage in farmers of Vadodara district

Farmers said not nature but government is rude to them

The lockdown due to outbreak of Coronavirus has caused extensive damage to farmers and government has announced interest free crop loans to offset the losses incurred by them. However the outright refusal from banks to provide interest free loans has sparked outrage among farmers. They said nature is not rude but government is rude to them and due to the double policy of government the time is to drink poison.

Melabhai Rabari, a farmer from Vyara village in Waghodia taluka said, the lockdown has caused extensive damage to farmers and as the monsoon is about to arrive they need money for sowing. The government has made big announcements to give zero percent interest but the banks are saying about not receiving any circulars. The double policy of the government force them to drink poison in such difficult times.

Naranbhai Patel farmer and sarpanch of Vyara village said, the government has announced an interest-free loan of Rs 3 lakh to farmers. They goes to different banks for loan but the banks say there has been no circular from the government on zero interest loans. Secondly there is no interest waiver from their existing loans and the banks say to repay the amount and no circular has been issued on loan interest waivers. I have been forced to pay interest of Rs 21000 on my Rs 3 lakh loan. The government announced that central government will pay 4 per cent and the state government 3 per cent interest for farmers, But all are just proving to be on paper.

Farmer Jayantibhai Patel said the government has not yet started buying at support prices. The government has fixed the price of maize at Rs 1,800, but the government is not purchasing and hence the helpless farmers sell maize to traders in Rs. 1200. The same is true of cotton. Government has announced interest-free crop loans but are not given to farmers by banks. Banks say the circular has not arrived and government is fooling the farmers. Farmers have suffered extensive losses in bananas during the lockdown and it continues during the recent effects of cyclone accompanied by rains.

Farmers said only announcements are being made by the government but not implemented. The answer from the banks also sparked a widespread resentment among farmers.