Farm loan default

It is a step in the right direction and a benign move, too. To attribute any political motive would be wrong in that the elections are two and a half years away. We have to give the credit where it is due.

The increasing indebtedness was literally turning the farmers into fugitives in that the certificate cases were chasing them out of their homes. It caused hardship to their daily living much the same way that land cultivation was also being hindered at this peak boro-irri season.

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The critics are likely to argue that such 'leniency' could prompt the farmers to flunk on the payment of principal upto the election year when the government might consider writing it all off. They have a point. Because, small farmers who, by and large, have been good loan repayers by reputation should not be lulled in the belief that complete waivers were possible. We cannot allow the fabric of financial discipline to be torn asunder under any circumstances.

The government, therefore, will have to make sure that the defaulting farmers pay back the principal amount in 12 instalments a year. The repayment schedule should be manageable to the farmers.