In Punjab, seven farmers’ organisations have written to the State Level Bankers Committee (SLBC) asking for its intervention after numerous incidents of farmers facing criminal cases from private as well as nationalised banks over delay in recovery of farm loans.
The seven organisations i.e. BKU Ekta, Kirti Kisan Union, Dakaunda, Kisan Sangharsh Committee, BKU (Ugahan), Bharti Kisan Union, Kisan Sangharsh Committee Azad and Karatikari Kisan Union have asked the committee to stop the banks from taking blank cheques for agriculture loans and filing criminal cases against cultivators for loan recovery, calling it violation of bank rules. “
A joint letter of the seven organisations said, “We have gone through the schemes of different banks for agriculture loans but did not found any provision of blank cheques as additional security. Hence it is a violation of rules”.
The letter further said, “With the rise in population, the requirement of agriculture product has also increased and it required intensive agriculture like shifting to high yielding variety (HYV), use of improved means of irrigation, insecticides, fertilisers, mechanised farming, land development, etc. and herewith agriculture production shifted to capital intensive which resulted into the requirement of finances”.
And with the need of finances for farmers, several institutions, including cooperative societies, cooperative banks stepped in besides government’s aid, it said.
