Measures to contain crisis in Wayanad

THIRUVANANTHAPURAM: Scrambling to resolve the farm crisis in Wayanad, the UDF Government on Wednesday slapped a moratorium on loan recovery by government agencies in the stricken northern district and gave in-principle approval for introducing a minimum support price for procuring and marketing agriculture produce. Wednesday’s Cabinet meeting discussed the report on the Wayanad crisis submitted by Additional Chief Secretary and Agriculture Production Commissioner (APC) K Jayakumar.Chief Minister Oommen Chandy told a post-Cabinet briefing that a one-year moratorium has been imposed on loan recovery by government agencies such as Kerala State Housing Board, Kerala State Backward Classes Development Corporation and Vegetable and Fruit Promotion Council Keralam (VFPCK). Penal interest on loans will be written off. There will also be a remission of 10 per cent on interest for those who have repaid loans, he said.The Cabinet instructed the APC to prepare a scheme for introducing a maximum support price for agri-produce from Wayanad for procuring and marketing. The Cabinet meeting on November 23 will discuss the proposal. A permanent Special Monitoring and Evaluation Committee for agriculture in Wayanad, another recommendation, was approved by the Cabinet. The Agriculture Minister will chair the committee, APC will be convener and it will have as members the ST Affairs Minister and two MLAs from the district. The Cabinet decided, in principle, to amend the Kerala State Debt Relief Commission Act 2006 to enable the receipt of applications regarding cases up to October 31, 2011, by the Debt Relief Commission.At present, only cases up to May 31, 2009, falls under the ambit of the Act. Urgent meetings will be called for dealing with loans taken from commercial and cooperative banks, Chandy said. The government will ask commercial banks to convene a special State Level Bankers’ Committee meet to discuss the matter. The meeting will be attended by the CM, Finance Minister and the Agriculture Minister, he said. Another meeting of the State Cooperative Bank, the State Agriculture Development Bank and district co-operative banks also will be convened shortly. The government will also examine a recommendation that the role of micro-finance and credit agencies in Wayanad should be put under the scanner, Chandy said.‘LDF government ignored  recommendations’Chandy accused the previous LDF Government of ignoring Debt Relief Commission recommendations. Although it earmarked  Rs 220.8 crore for debt relief during its term, the LDF Government disbursed only Rs 62.4 crore. The Commission had recommended the disbursal of Rs 89.6 crore. He, however, was noncommittal on the reasons for farmer suicides.