How much burden of debt on Dalit Agricultural laborers of Punjab?
Highlights of the report released by Punjab Khet Mazdoor Union
Chandigarh, September 17, 2017 :
Report of a survey, conducted by Punjab Khet Mazdoor Union, in 13 villages, spread over 6 Districts of Punjab, about the burden of debt on dalit agricultural laborers, was released on September 17 in the presence of Economists, intellectuals, activists and a big gathering of agri-laborers. Dr. Sukhpal Singh – Head Economics Deptt Punjab Agriculture University, Ludhiana, Dr. Anupama – Prof of Economics, Punjabi University, Patiala, Sh. Devinder Sharma – agriculture economist, Sh. Hamir Singh and Sh. Daljit Ami –Journalist, were present on the occasion.
Lachhman Singh Sewewala, General Secretary of Punjab Khet Mazdoor Union, presented the report, highlights of which are as follows:
Out of 1618 agriculture laborer families surveyed, 84 percent (1364) were under debt amounting to a total of Rs. 12,47,20,499/-, which comes out to be Rs. 91,437/- per family.
Main source of this debt is private money-lenders – micro-finance companies and rich landlords etc., who charge exorbitant interest. 38.8 percent families are indebted to Micro-finance Companies. Some of the families are indebted to multiple sources.
Debt of Micro-finance companies amounts to Rs. 2,88,97,035/- (23 percent) and of rich landlords Rs. 2,88,76,650/- (30 percent)
Debt from landlords, owning more than 10 acre land, comes out to Rs. 1,92,69.900/- (15.46percent), between 5 to 10 acres comes out to Rs. 93,28,500/- (7.47 percent) and from those owning up to 5 acres, comes out to be Rs. 85,84,400/- (6.88 percent).
Debt advanced by Public Sector, Private & Co-operative banks is Rs. 2,02,19,969/- (16,21 percent)
Debt from Goldsmiths is 17,04,725/-, (1.38 percent) from friends & relatives Rs. 77,82,300/- (6.24 percent) and from provisions shop-owners Rs. 57,500/- (0.05 percent)
Agriculture laborers are made to pay interest ranging from 18 to 60 percent on these loans. Public Sector Banks and Co-operative Societies charge between 7 to 24 percent interest.
A large part of the debt i.e. 25 percent (Rs.3,04,36,900/-) has been incurred for construction of houses,19 percent (Rs. 2,39,33,500/-) for illness, 14 percent each for domestic needs (Rs. 1,76,96,110/-) and marriages (Rs.1,79,16,475/-), 6 percent (Rs. 75,14,000/-) for taking land on Theka and 5 percent (Rs. 66,08,269/-) for purchase of a vehicle.
The reasons for such heavy debt, are – landlessness amongst agriculture laborers, acute unemployment caused by anti-people development model, alarming pollution causing incurable diseases, lack of public health services and highly expensive private medical treatment, policy of privatizing of health services, education and water resources and rolling back of welfare schemes and extremely discriminatory, defective and usurious loan policy.
In order to tide over the crisis caused by the mounting debt of agri-laborers and farmers, the report suggested the following policy steps:
Revolutionary land reforms and distribution of surplus lands amongst the landless agriculture workers. After implementation of land ceiling laws in Punjab, the surplus land available is 16 lakh 66 thousand hectares. It should be speedily distributed.
Increased budget expenditure on agriculture
Curbing the loot of manufacturers and traders of agriculture inputs, such as seeds, fertilizers, pesticides, insecticides and farm machinery;
Development of such plant varieties which require less fertilizers and pesticides, but give rich yield.
Promotion of agro-based, labor intensive industries to generate employment.
doing away with policies of globalization, privatization and liberalization.
Creating opportunities of permanent employment in Govt, semi-Govt and Public sector and withdrawing the policy of casual & contract employment.
Debt relief to agriculture laborers. Ensuring loans to agriculture laborers and poor farmers interest free or on nominal interest.
Enactment of pro-people Debt Relief Act.
Stopping concessional loans and other credit facilities to rich-landlords on soft terms and their incomes be brought under tax.
Above policy initiative cannot be expected to be taken by the present regimes, who are the representatives of landlords, big capitalists and agents of imperialists.