In Rajasthan, if farmers fail to repay their debts, their lands will not be auctioned by banks

A relief commission for farmer debts is soon to be introduced by the government. This bill will be presented in the legislative assembly and is fully prepared to be passed. On August 2nd, the bill will be presented in the assembly, and after its passage, the path to establish a Farmer Debt Relief Commission will be clear.

One significant advantage for farmers under this bill is that in case of crop failure due to any reason, banks or any financial institution will not be able to exert pressure for loan recovery. Farmers can apply for debt forgiveness in this commission if their crops are damaged. According to the report by Dainik Bhaskar, the commission will have the power to order the government to forgive or provide assistance in repaying farmers' debts. The commission will be comprised of five members, including a chairman, and retired judges from the High Court will serve as its head. Additionally, retired IAS officers at the rank of ACS or Chief Secretary, retired judges from district and session courts, officers with experience in the banking sector, and an agricultural expert will also be appointed as members. An officer of the Additional Registrar level from cooperative societies will serve as the secretary of the commission.

The commission's term will be three years, and the chairman and members will also have a three-year term. The government may extend the commission's tenure at its level and has the authority to remove any member. The Rajasthan Farmer Debt Relief Commission will possess substantial powers. If in any area, crops are damaged, and a farmer cannot repay the loan due to this reason, the commission has the right to declare that farmer and area as distressed. This means the farmer will not be forced by banks to repay the loan.

After declaring an area as distressed, the commission will have the authority to decide on the settlement process for the loans taken from banks. Before making any decision in favor of farmers, the commission will also provide an opportunity for the representatives of banks to be heard. The commission can also make decisions such as rescheduling loans and reducing interest rates.