Ruling party, opposition spar over crop loan waiver, paddy procurement

CHENNAI: The announcement of a crop loan waiver for farmers by the ruling Tamilaga Vettri Kazhagam (TVK) government triggered a verbal exchange between the ruling party and the Opposition DMK during the Assembly on Monday.

Participating in the debate on the General Budget and Agriculture Budget, former Minister and DMK MLA MRK Panneerselvam questioned the government's decision not to waive crop loans for farmers as assured during polls.

He said the TVK had announced during the election campaign that all farmers' crop loans would be waived. "Based on this announcement, the government would have to waive loans worth around Rs 21,000 crore, but it has allocated only Rs 6,000 crore. Since crop loans have not been waived, farmers are unable to obtain fresh loans," Panneerselvam alleged.

Responding to Panneerselvam's allegation that private traders were procuring paddy from farmers at higher prices than the government, Food Minister P Venkataramanan said the government had procured around 65 lakh metric tonnes of paddy from farmers over the past three months.

He said procurement had been increased to ensure adequate stocks and avoid shortages during natural calamities.

"During the DMK regime, Direct Procurement Centres were operated by DMK functionaries. The situation has changed now," the minister alleged.

Former Food Minister and DMK MLA R Chakrapani rejected the charge, saying that during the DMK regime, Direct Procurement Centres were operated under committees headed by the respective District Collectors.

Defending the DMK's position on crop loan waiver, former Minister and DMK MLA EV Velu explained why the previous DMK government had not promised a complete crop loan waiver.

He said the then Finance Secretary had not given consent to the proposal, citing difficulties in distinguishing between small, marginal and large farmers.

"The Finance Secretary told us that the government could not differentiate between small, marginal and large farmers. If the scheme had been implemented, the government would have had to spend around Rs 19,000 crore. Due to financial constraints, we did not include the proposal in the DMK's election manifesto," Velu said.

The debate subsequently shifted to paddy procurement.