Kerala farmer's loan crisis sparks urgency for Govt intervention

In Kerala, a significant number of impoverished people are grappling with debt often with no official records maintained by the government. The dire situation came to light recently when KG Prasad, a farmer from Takazhi Kunnumma tragically took his own life after facing challenges securing a loan for rice cultivation.

Prasad's case gained attention when it was revealed that his home and five-cent land were at risk of confiscation due to loan default. The loan, amounting to Rs 60,000 was obtained for self-employment in 2022 and had been overdue for 11 months. Prasad's wife Omana received a foreclosure notice from the Scheduled Castes and Scheduled Tribes Development Corporation, stating that if the outstanding amount of Rs 17,600 was not settled within five days, their property would be seized.

Prompt action was taken by Kerala's Scheduled Tribes Department Minister, K Radhakrishnan who promptly ordered a halt to the confiscation upon learning of the situation. The minister's swift response underscores the need for a compassionate approach in dealing with people facing financial distress.

Omana, grateful for the temporary reprieve expressed that she lacks the means to settle the arrears even with an extension. Advocating for a more systematic solution, she suggested that the government consider taking over or forgiving such debts to prevent vulnerable families from facing eviction.

This incident sheds light on a broader issue of debt among the extremely poor in Kerala, where government assistance often materializes only when specific cases become headline news. To address this, Agriculture Minister P Prasad emphasized the necessity of establishing a dedicated fund to alleviate the loan burden on destitute individuals. Such a fund, financed through tax contributions would mirror similar initiatives in developed nations where assistance is provided to those in financial distress.