After MP delivers on loan waiver promise, pressure on Ashok Gehlot to follow suit

JAIPUR: Making good on Congress president Rahul Gandhi’s promise of waiving off farmer loans, Madhya Pradesh chief minister Kamal Nath announced loan relief up to Rs 2 lakh immediately after taking oath on Monday while putting pressure on his Rajasthan counterpart Ashok Gehlot, who was also sworn in as chief minister on the same day.

Even as Gehlot said that farmers’ loans would be waived off within 10 days, fulfilling the promise of the party president made during the run-up to the state elections, Rahul’s tweet on Monday added urgency to the call. “CM, Madhya Pradesh, waives farm loans. 1 done. 2 to go,” tweeted Gandhi.

Unlike in Rajasthan, the previous MP government has not announced a loan waiver, making it easier for Kamal Nath. In 2018-19 budget, the previous BJP government in Rajasthan had waived off farmers’ crop loans up to Rs 50,000. As per the loan waiver portal of the state government, so far 327,567 certificates for loan waiver have been issued. The previous government estimates show loans worth Rs 5886.80 crore have been waived off, as per the portal.

While Nath announced to waive off short-term crop loans up to Rs 2 lakh, Gehlot would be in a fix as to deciding a limit on loans. Since Vasundhara Raje waived off loans only last year, the Gehlot government will have a difficult task of identifying beneficiaries and deciding on the amount.

“Anything less than Rs 2 lakh relief that MP announced would send a wrong political signal. Secondly, Rajasthan has already waived off crop loans last year. Gehlot has an option to include loans that farmers owe to scheduled banks for waiver which he can exploit to criticize Raje, whose scheme only included loans of cooperative banks. But it will not be easy,” said an agricultural economist, preferring anonymity.

The economist said that there is also no clarity if crop loans or any other loans of farmers would be waived off. Additionally, the state’s finances are not in the pink of health after the government took over the loans of the discoms under Uday scheme and implemented the 7th Pay Commission.

Farmers’ loan waiver will be key to Congress’ strategy for the Lok Sabha polls that are likely to be held in 4-5 months. Falling behind people’s expectation may boomerang.

Many small and marginal farmers who were eligible for the relief last year were not happy with the scheme. During the distribution of the certificates, not many farmers received Rs 50,000 promised under the scheme by Raje government as the loans were indexed to their land holding.

Satyanarayan Singh, a farmer in Baran, said that the government should be honest about delivering on what it has promised. “Last time, we felt we were cheated. Very few got Rs 50,000 announced by Raje government. Hope, the Congress party does not repeat the same mistakes,” added Singh.