Chidu’s waiver useless to Telangana farmers

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Sandhya Ravishankar / CNN-IBN

March 12, 2008
Chinnarajam, Andhra Pradesh: Chidambaram’s loan waivers have been met with a wave of disappointment in Andhra Pradesh.

In Mahabubnagar, one of the worst hit areas, more small farmers have committed suicide – they could not pay back their dues, not to banks, but to local moneylenders.

Ramulu is one among many such small farmers who own an acre or less of cultivable land. Ramulu’s son Chandrappa committed suicide last month, leaving behind a loan of about Rs 90,000 yet to be repaid.

“The banks give us Rs 3,000 per acre. That’s not enough for us. We need at least Rs 10,000 to Rs 15,000 for the farm. What the banks give us is simply not enough,” said a farmer, Ramlulu.

Each of the 1,200 small farmers in Mahabubnagar is in debt. 70 per cent of them have borrowed from local moneylenders who charge an interest rate at three times the rate charged by banks.

The other 30 per cent, who have borrowed from banks, are also in debt with these same moneylenders.

NO RELIEF: A National Sample Survey has shown that 82 per cent of AP farmers are in debt.

(ఇంకా…)