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More Broken Promises To Farmers

Banks send letters demanding loan installments

By Niranjala Ariyawansha-Sunday, October 21, 2012

Reminders to farmers to pay their loan installments

Drought stricken farmers in the dry zone lament that the government has failed to honor its promise and that they have been sent letters by banks seeking installment payments for loans taken by them to cultivate the Yala harvest that has failed due to the water shortage.

“At that time we asked the President to give us this promise in writing. Because we knew that at election time they give false promises. But they didn’t give it in writing. As we had no alternative we voted for them. As we suspected, President deceived the helpless farmers this time as well,” said Susantha Kumara Navaratna from Mahaweli system H at Nuwerakalaviya in Anuradapura.

The representatives of the All Island Farmer Federation complained that although President promised to provide relief for the failed crop and to write off the loans taken from banks during the Yala season at Anuradhapura and Polonnaruwa districts, none of those promises have been kept.

According to the official statistics of the Government, more than 100,000 paddy lands have been destroyed due to the severe drought experienced during last five months. President on his visits to Anuradhapura during the North Central Provincial Council elections, promised the farmers to cancel the loans taken by them for cultivation from the state banks.

But barely weeks following the elections the farmers in Anuradhapura and Polonnaruwa complain that instead of writing off the loans they are receiving reminders from the banks to pay the loan installments. The state bank officials take the position that they have not received any circular from the government with regard to writing off these loans and therefore they have to take action according to the prevailing financial regulations.

Farmers say they are unable to repay the loans as they find it even difficult to manage their day-to-day life. By now they have not only pawned their jewellery but also items such as tractors, which they use for farming activities.

Namal Karunaratna, President of the All Island Farmer Federation said, “We farmers cultivate the land by pawning our jewellery and becoming indebted to banks. When we collect the harvest we pay the loans. Then we have to borrow again to cultivate the next season. This is a never-ending cycle we undergo in our miserable lives. So how do we repay the loans when the drought destroys our crop? Without repaying how do we get loans to cultivate the next season?”

Now it has started raining in Rajarata ending the drought experienced for the last few months. Although they should start the cultivation for Maha season now, Karunaratna says that they have no funds.

“We asked for compensation for the crop failure. But we were given an election instead of compensation. They deceived us to get the votes. At that time President came to Rajarata, walked in the fields and promised thousand odd things. Among them was the promise that cultivation loans taken from state banks will not be recovered until the harvesting is completed in the Maha Season of 2012 and 2013. He also said the interest charges for pawned jewellery will be written off. This was given as an order from him” Full Story>>