Alappuzha farmer kills self after banks refuse agriculture loan

Alappuzha: Another farmer in the Kuttanad region of Alappuzha has ended his life, after allegedly failing to fund his paddy cultivation, bringing to the fore the crisis being faced by the agrarian sector in the state.

K G Prasad (55), a farmer based in Thakazhi, reportedly consumed poison on Friday noon, and he died at a private hospital in Tiruvalla early on Saturday. He has left a suicide note in which he accused the State Government and certain banks of “pushing him into an acute financial crisis that forced him to take the extreme measure”.

As per the suicide note, it was in 2011 that he took a loan from a major bank. Though he defaulted in repayment, due to his poor financial situation, he had paid Rs 20,000 to the bank. And in 2020, he closed the loan under the ‘one-time payment scheme’ offered by the bank.

Prasad charged that none of the banks were ready to extend him loan thereafter due to the 'low CIBIL score' as he ran from pillar to post to carry on with his paddy cultivation in a four-acre land at Thakazhi.

CIBIL score is a three-digit numeric summary of a borrower’s credit history. It helps lenders understand how well a prospective borrower has managed his or her finances in the past, like a home loan, personal loan or credit card.

He further claimed that the state government failed to make payment to the bank for the 'PRS loan' taken and the interest thereof, further lowering his CIBIL score. (PRS loans are given to farmers on the basis of the Paddy Receipt Sheet (PRS) in lieu of procurement of paddy.)

With the banks refusing to extend loans, there was no money for him to buy fertilizers and all for the crops that were his last hope.

“He couldn’t start the cultivation this time as he didn’t have the money to buy fertilizers and other inputs. Usually, the PRS loan is extended by banks after procurement of paddy and the state government repays it later. However, the government didn’t pay to the bank the PRS amount with regard to the 2022-23 period,” sources explained.

A sum of Rs 5 lakh was extended by the bank towards the paddy procured for the 2022-23 season, but the state government allegedly didn’t repay the same so far.

“It’s the state government’s duty to promptly repay the PRS loan and interest. The authorities failed to do that and now none of the banks are providing me loans for cultivation. I’ve no means to live now,” Prasad wrote in his suicide note.

“I have failed in my life. Though I quit drinking 20 years ago, now I was forced to start the habit again due to my pathetic state,” he was heard telling his friend in a phone recording that had surfaced.

Prasad was a BJP activist and had served as the district president of the Bharatiya Kisan Sangh.

Meanwhile, the leader of the Opposition V D Satheesan criticized the government for its “lackadaisical attitude” in taking proactive measures to address the issues faced by the farmers in the state.