Andhra Pradesh Farmers Selling Organs To Escape Debt Trap

March 7, 2013

Almost five years after the UPA government allocated the lion's share of its Rs 52,000 crore farm loan scheme to Andhra Pradesh, reports are emerging from the state that distressed farmers are selling their organs to come out of the agricultural debt trap.

Three states - Andhra Pradesh, UP and Maharashtra - had got almost 57% of the Rs 52,000 crore package meant for all 35 states and Union Territories. Disbursal in Andhra Pradesh was Rs 11,000 crore while it was Rs 9,095 crore in UP and Rs 8,900 crore in Maharashtra.

The farm loan waiver has been cited as one of the main vote-catchers for the Congress in the 2009 LokSabha polls and this was vindicated in the party's handsome performance in the three states with the largest allocations. While Congress bagged 31 seats in Andhra, it got 22 in UP and 16 in Maharashtra, a performance which facilitated formation of the second UPA government at the Centre.

In Andhra Pradesh, around 77 lakh farmers cornered more than Rs 11,000 crore, almost 21% of the total farm loan waiver package. But as the Comptroller and Auditor General (CAG) report reveals, a huge number of ineligible farmers were allowed waiver while many marginal and small farmers were denied the benefit and they continued to remain in a debt trap.

CAG detected tampering with loan records, alteration in ledgers and changing records where non-agricultural loans were converted into agricultural loans.

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