WAYS AND MEANS TO REMOVE THE CONSEQUENCES OF RURAL INDEBTEDNESS
1) Releasing the farmers from the clutches of indebtedness:
In India, the farmers are languishing in the past debt for which they are forced to live in a poor socio-economic condition. The farmers overburdened with past debts should be free from it which will help them to lead a free and healthy life. Appropriate Legislation has be enacted to prohibit the realization of the debts. Some of the classes of the rural societies have been granted immunity against the debts and
money lenders cannot realize the loans through the court of law.
2) Alternative arrangement for loan to the farmers at nominal rate of interest:
Poor farmers are not able to improve their agricultural land due to poor financial background. The government should provide loan to the farmers in minimal interest. In this respect, Government have also taken various steps. Different banks and other
institutions have started giving loan to the farmers for improving the agriculture. Different co operative societies have been set up for providing loan to the farmers. Then land mortgage banks and such other banks have set up for providing an opportunity to the farmers to get loan for improvement of their agriculture. The rate of interest to be charged by these alternative arrangements should be only minimal.
The rate of interest that is charged by these bodies that are providing loans to the farmers cannot be called nominal only management of loans at normal rate of interest would solve the problem of rural indebtedness.
Agricultural loans are available for a multitude of farming purposes. Farmers may apply for loans to buy inputs for the cultivation of food grain crops as well as for horticulture, aquaculture, animal husbandry, and floriculture and sericulture businesses. There are also special loans to finance the purchase of agricultural machinery such as tractors, harvesters and trucks. Construction of biogas plants and irrigation systems as well as the purchase of agricultural land may also be financedthrough special types of agricultural finance. Here is some information about the kind of agricultural credit and loans provided by public sector banks in India.
(3) Co-operative Credit Societies and facilities for loan from banks:
In village co operative societies should be formed and greater facilities for loans should be made from banks. Both these facilities are given at present from banks. Both these facilities are given at present from these institutions but their working is not satisfactory. There working should be streamlined so that the real purpose of freeing the farmers from the clutches of the money lenders can be achieved. The bank has introduced Kisan Credit Cards in the S.T. Cooperative Credit Sector. It also organizes seminars on agri finance. OSCB has 17 Central Cooperative Banks and around 810 mini banks in different districts of Odisha.
4) Law against dispossession of land
Jagannath(2016) narrates that tribals in Odisha continue to suffer from land deprivation and dispossession of different kinds despite special enabling provisions in the constitution, a legal framework for their implementation and several targeted public policy initiative taken by the state government. The erosion of tribal way of life and land ownership system, land alienation and imposition of the values and dominance of the outsiders, in collaboration with the government, have ensured that
the tribals in Odisha continue to be impoverished and dispossessed. (1). This Act may be called the Orissa Government Lands Bar to Acquisition of the Right of Occupancy Act, 1950. (2) It extends to the whole of the State of Orissa, (3) it shall come into force at once. Money lenders use their loans as an agency for dispossessing the farmers of their landed property. If law is passed against the dispossession of land in account of loan by a money lender many of the problems would be solved. Certain Government measures have also been taken in this respect but more comprehensive measures have also been taken in this respect, but more comprehensive measures and their
proper implementation is necessary implementation of these measures should be free from the effect of red tapism and this would solve the problem.
5) Control over the rate of interest:
There should be control over the rate of interest to be charged by the money lenders from the rural people. Though, legislation Government have imposed certain ceilings on the rate of interest but for complete relief to village people from the indebtedness. Money lending in Scheduled Areas of Orissa is also regulated and controlled by Orissa (Scheduled Areas) Money Lenderโs Regulation 1967 and Orissa (Scheduled Areas) Money Lenderโs Rules 1970. The Central PESA mandates: โWhile endowing Panchayats in the Scheduled Areas with such powers and authority as may be necessary to enable them to function as institutions of self government, a State Legislature shall ensure that the Panchayats at the appropriate level and the Gram
Sabha are endowed specifically with the power to exercise control over money
lending to the Scheduled Tribes.
6) License for the moneylenders and checking their accounts and income:
Only those persons who hold a license should be allowed to advance loans to the village people. Government should device ways and means and also machinery to check the accounts of these people. In other words their income should be subjected to necessary taxation. This would not allow the money lenders to preplan. This should be imposed a restriction on their amassing black money. In fact what is
needed is greeter check and control on black money. Once it is done the problem of money lenders in the villagers shall automatically be solved.
7) Education of the farmers: Illiteracy has forced the farmers to involve them in dirty custom of indebtedness. They are ignorant about the bad consequence of indebtedness. Once they become educated they shall be able to know various difficulties and the complications of the indebtedness. Education is the best method
for educating the farmers about various social problems. If this difficulty can be
overcome various problems of the Rural Society including indebtedness shall be
resolved.
(8) Reduction of Old debt:
Perpetual debts on which enough rate of Interest has already been paid should be written off. In this regards different state have passed Debt conciliation Act and have established various boards for mutual settlement between farmers and money lenders. In 1989 the Janta party Government had written off loans of the small and marginal farmers. In the 1990-91 government announced agriculture and Rural Debt Relief scheme. In 2005-06 the government provided Rs 2939 crore as debt relief to farmers.
TUMBAACH 