Politics over farm loan waiver in AP: YSR Congress launches stir

The politics of farm loan waiver has gripped Andhra Pradesh as the ruling Telugu Desam Party and the opposition YSR Congress Party engage in a fierce game of one-upmanship over the issue.

In fact, it has been a bone of contention since the election campaign to the State Assembly earlier this year, with the Telugu Desam Party promising to waive all farm loans and the YSR Congress Party dubbing it as a false and unrealistic promise.

The Telugu Desam came to power because the farmers voted for the party in large numbers, hoping that the TDP would keep its promise. But after the bifurcation of the State, the newly-formed TDP-BJP government found itself on a sticky wicket, saddled with a budget deficit of ₹16,000 crore. It has become quite a task for the TDP Government to fulfill its promise of waiving all farm loans, with no help from either the Union Government or the RBI.

However, on Thursday, Chief Minister N Chandra Babu Naidu announced the guidelines for implementing the waiver scheme.

Farm loans up to ₹50,000 would be waived immediately and those above the limit would be waived in phases.

Funds would be released to the commercial banks for the purpose and bonds would be issued to meet the obligation, the CM announced. He promised that the loans given to self-help groups of women would also be waived at a later stage.

In protest, the opposition YSR Congress Party commenced a state-wide agitation programme from Friday, with the YSR Congress Party YS Jagan Mohan Reddy launching the agitation in front of the district collector’s office.

YS Jaganmohan Reddy accused the TDP government of cheating the farmers and women of the State by making false and unrealistic promises. “The State government has, so far, allocated only ₹5,000 crores for the waiver scheme, whereas more than ₹1 lakh crore is required for waiving all the farm loans and loans taken by the self-help groups of women. The State is stuck with a budget deficit of ₹16,000 crore.

It is for Chandra Babu Naidu to tell the public clearly by what trick he will conjure up the funds required for fulfilling the promise. Already, 87 farmers have committed suicide in the State and the CM should own responsibility for it,” he alleged at a public meeting on Friday.

He said he would go on a fast on the issue on January 6 and 7 and would visit the families of the farmers who committed suicide after Sankranti.

The Chief Minister and the other TDP leaders are accusing the YSR Congress leader of politicising the issue as his party had lost the election and he was left with no other issue.

Regardless of the political tussle, the farmers of the State are waiting for relief from indebtedness.