"Implementation of PM’s Package for Farmers Ineffective,” Says Study
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, May 24: Implementation of the Prime Minister’s Rehabilitation Package for Farmers in four suicide-prone districts of four states is ineffective and the Karnataka has failed in spending the allocations, says an Evaluation Study conducted by Institute for Social and Economic Change (ISEC), Bangalore.
The package was announced on July 1, 2010 and implemented in six districts each of Karnataka and Maharashtra, three in Kerala and 16 districts of Andhra Pradesh. Under the package, Rs 9650.55 crore (56.84 %) has been allotted to Andhra Pradesh, Rs 2689.64 crore (15.84 %) to Karnataka, Rs 765.24 crore (4.51 %) to Kerala and Rs 3873.26 crore (22.81 %) to Maharashtra.
The Prime Minister’s Rehabilitation Package was implemented in the six districts of Belgaum, Chikmagalur, Chitradurga, Hassan, Kodagu and Shimoga.
The Karnataka Government had failed in spending the allocations made for payment of ex-gratia amount to distressed families of farmers, evaluation study said. Under ex-gratia payment, the State Government has disbursed Rs. 1.77 crore of the total allocation of Rs. 3 crore by the Centre.
Institute for Social and Economic Change, Bangalore
A total of 4570 families from six districts received the payment by March 2009. The average ex-gratia payment disbursed ranged from Rs. 2420 in Chitradurga to Rs. 10,000 per beneficiary in Hassan.
Besides collusion between local leaders and government officials, many rich farmers received ex-gratia payment bypassing the poor, they said.
The centre sanctioned Rs 50 lakh per each district for payment of ex-gratia to the families of distressed farmers for meeting contingent expenditure on healthcare and education needs of their children.
The evaluation study on implementation of the rehabilitation package in Andhra Pradesh, Karnataka, Kerala and Maharashtra conducted by ISEC, noted that a good number of better-off households availed the benefits under the ex-gratia payment scheme.
Prof M J Bhende and Prof P Thippaiah of ISEC, who conducted the study, said that most of the farmers in the suicide-prone districts benefited from one or the other scheme of the PM package.
The study noted that a few small and marginal farmers had purchased subsidised certified seeds from the Raitha Samparka Kendras and sold them to large farmers at some premium.
Delay in the supply of seed and inadequate infrastructure (cold storages, transport and market) are major constraints faced by the farmers in the selected districts.
The actual rate of interest waived is more than the overdue interest “to be waived” in Karnataka.
The State Government waived off interest on farm loans amounting to Rs 639.75 crore benefiting over 4.29 lakh farmers in six districts. Very few farmers opted for fresh loans, the study said.
The study pointed out that almost all the beneficiaries in Karnataka have reported that they have not received payments for purchase of feed for rearing calves.
"Some of the beneficiaries were either office-bearers of milk cooperative society or had some connections with officials in the KMF or the officials from the Animal Husbandry Department,” the study said.
However, the existing policy ‘penalises’ the borrowers who promptly repay loans. The government should not waive the loans of all the borrowers and should pursue the policy of selective loan waiver based on socio-economic condition of the farmer, they said.