The Maharashtra government today announced a loan waiver for farmers and chose to form a committee to decide the criteria of debt relief, after which cultivators called off their protests.
While Chief Minister Shivraj Singh Chouhan is sitting on an indefinite hunger strike "until peace is restored", state Agriculture Minister Gauri Shankar Bisen said on Saturday that farmers can not be given a loan waiver.
The farmers' strike completed 10 days on Saturday with an ultimatum to the state government to concede their demands, failing which the agitation will be further intensified from Monday. The committee will hold discussions with farmers' leaders and submit a proposal to the state government.
Farmers accepted the new offer on Sunday, ending an 11-day strike by farmers that had curtailed supplies of vegetables and milk to cities, including Mumbai, and sent prices sharply higher.
Media reports quoted Maharashtra Revenue Minister Chandrakant Patil as saying that loans of small farmers have been waived with immediate effect.
On Friday, Fadnavis had announced the formation of the six-member committee to look into the various demands of farmers, including the loan waiver.
Madhya Pradesh: CM Shivraj ends his fast
The Chief Minister, who was on fast amid the ongoing farmers' crisis in his state, broke the fast by drinking coconut water. While on fast at the Dussehra maidan, the CM appealed to farmers to come and discuss their problems with him at the maidan.
All India Kisan Sabha General Secretary Ashok Dhawale said the historic farmers' convention in Nashik on June 8 compelled the government to negotiating table, "but it remains to be seen which demands it is actually willing to concede".
Meanwhile, leader of the opposition in the Maharashtra legislative council, Dhananjay Munde, has demanded that the benefits of the loan waiver be given to all farmers.
Patel said that due to farm loan waivers, overall borrowings of the government would go up and that can lead to crowding out private borrowers and increase the cost of borrowings for others. Conditions and detailing will be finalisedby a joint committee. However, today the government agreed on an immediate waiver. Farmer leaders Raju Shetty, Raghunathdada Patil, MLA Bacchu Kanu, former judge BG Kolse Patil and Dr Ajit Navale were also present at the meeting. "Marginal farmers can get fresh loans from tomorrow so that they can get seeds", he said.
The government has agreed to hike the prices of milk and milk cooperatives will have to share profits in the ratio of 70:30 on the lines of the sugar cooperatives.
"Discussions between the Government of Maharashtra and representatives of farmers reached a consensus". Political analyst Prakash Akolkar said, "The farmers' agitation is spreading to other states also".
The extent of loan waiver in terms of its impact on the state exchequer was not immediately known.
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