By Bizodisha Bureau, Bhubaneswar, October 28, 2015 : Odisha Government on Wednesday directed the cooperative credit structures to suspend recovery of loan from farmers with immediate effect keeping the menacing drought in view.

The ruling party came in for sharp criticism for what it called the state government’s failure to check the rising cases of farmers’ suicides.

Stung by the frontal attack by the Opposition parties, the State Government had convened a meeting of bankers, members of the State-Level Bankers’ Committee, Special Relief Commissioner and secretaries of Revenue, Agriculture and Cooperation departments to decide on relief to be provided to the farmers for repayment of kharif loan.

Crop loss of 50 per cent and more in a particular area will be eligible for rescheduling of loans. However, a recent circular of NABARD said that crop loss of 33 per cent or more would be eligible for restructuring of the crop loan to term loan and this has created confusion, official sources said. As per the revised RBI guidelines, the principal amount of the short-term loan as well as interest due for repayment in the year of occurrence of natural calamity may be converted into term loan.

The repayment period of restructured loans may be extended up to 10 years depending on the severity of calamity, the extent of loss of economic assets and distress caused. The crop loss could be estimated on the basis of the crop cutting reports, which is a time taking process, sources said.

The Chief Minister, who reviewed the drought situation through video conferencing with the district collectors, directed them to convene district consultative committee (DCC) meeting within the next two days to assess the crop loss and ensure speedy implementation of suitable relief measures by banks. He further asked the district collectors to take strong action against the money lenders who have been harassing the farmers to pay back loan.

A joint team of the revenue and police departments will be constituted in each district to keep a close watch on people involved in money lending business. The district collectors and superintendents of police of all the districts have been asked to conduct joint inspection of all suicide cases and report to the Home department within 24 hours.

The State Government has also waived off the water cess of the farmers of the affected districts for the current year. The Agriculture department has been asked to start distributing agricultural input subsidy from November 10.