885 Crore for Cooperatives Insufficient to Free Farmers from Loan Burden: BKU

The farmer leaders on Saturday said that the funds allocated for the Punjab State Cooperative Agricultural Development Bank (PSCADB) and District Central Cooperative Banks (DCCBs) during the Budget 2023–24 were insufficient to carry out any useful work. This comes a day after Finance Minister Harpal Singh Cheema said that the Punjab government wants them to stand on their own.

According to Jagmohan Singh Patiala of Bharti Kisan Union (Dakuanda), Rs 885 crore has been set aside for PSCADB, which includes 89 banks. “So, each bank will only get around Rs 10 crore each and this is not enough to pay back its NABARD loan and clear terminal benefits of its pensioners that were stopped 2013. Some funds were allocated to these banks before the budget and the amount is being mentioned in the budget now,” he added.

The farmer leader continued by saying that many small and marginal farmers as well as farm labourers owe cooperative societies, the Agricultural Development Bank (ADB), and the Central Cooperative Bank a sizable sum of money.

“In this budget, nothing has been done to ease this huge debt. Farmers who took loans from ADB are the worst affected as their interest amount is much more than the principal,” he said adding that CM Bhagwant Mann assured to look into the matter when it was brought to his attention.

“However, with this meagre allocation, how will the cooperatives even pay back to NABARD or pay pensions and other benefits to their employees,” he asked. In order to free farmers from their debt burden, Mann had promised a one-time payment, but "this budget doesn't meet the promise," the speaker continued. Farmers have defaulted on their payments, he continued, and are now dealing with "Kurki cases" (attachment of their farmlands).

The Assistant Registrar Cooperatives and Deputy Registrars have the authority to seize ownership of farmers' land and attach it to the bank in accordance with Section 67(C) of the Punjab Cooperative Societies Act, 1961.