Karnataka spent a little more than 59 per cent of the total assistance of Rs 3 crore given by the Centre for ex-gratia payment meant for distressed farmers in suicide-prone districts.
A survey revealed a collusion between local leaders and government officials which resulted in wealthy farmers receiving the ex-gratia amount bypassing poor and needy farmers – observed Bengaluru-based Institute for Social and Economic Change (ISEC) which conducted a study of the implementation of the Prime Minister’s Rehabilitation Package given to suicide-prone districts across the four states of Karnataka, Kerala, Andhra Pradesh and Maharashtra.
Prof M.J. Bhende and P. Thippaiah, in the study, noted that the package announced in July 1, 2006 was implemented in six districts of Belgaum, Chikmagalur, Chitradurga, Hassan, Kodagu and Shimoga. The government disbursed only Rs 1.77 crore of the Rs 3 crore to 4,570 families by March 2009. The average amount of ex-gratia ranged from Rs 2420 in Chitradurga to Rs 10,000 per beneficiary in Hassan.
The Centre had sanctioned Rs 50 lakh to each district to meet contingent expenditure on healthcare and education needs of families of the farmers in distress. However, some small farmers purchased subsidised certified seeds from Raitha Samparka Kendras and sold them to large farmers at a premium due to inadequate infrastructure for storage, transport and market. While, the Centre had earmarked only 16.01% of the total amount for waiving of overdue interest, Karnataka and Maharashtra waived more than the overdue interest.
“The government should not waive loans of all borrowers and should pursue the policy of selective loan waiver based on socio-economic condition of the farmer,” suggested Prof. Bhende and Prof. Thippaiah.