TDP poll promise: Farm Loan and Women SHG loan Waiver is impractical

Telugu Desam Party has been promising loan waiver to farmers and DWRCA women self help groups immediately after coming to power.  On 24^th March, TDP leader has released the Manifesto for 2014 local body elections and promised to waive the loans of Farmers and SHG women.   These promises Rs. 90,146.87 crore (Rs. 67,224.28 cr of farm loans and Rs. 22,922.59 cr of Credit to Women Self Help Groups) will cost about 50% of the total budget (Rs. 1,83,129.00 crores) proposed for the year 2014-15.  While indebtedness among farmers itself is high, institutional credit to agriculture is only around 21%.  Most of the institutional credit only goes to land owners and not the real cultivators who take land on lease and cultivate. In this regard we feel that spending half of the budget to raise hopes and votes from many and finally helping only few is completely unjustified.
The TDP leader is also asking farmers and women self-help groups not to repay the loans as he would waive all of them when comes to power. This will also affect the credibility of the farmers and women SHGs and effect their Credit worthiness.
A.      On Farmers Loan Waiver

1. The total loans to farmers planned during 2013-14 were Rs. 67,224.28 crore against which Rs. 38,491.65 crores were disbursed till 30^th September, 2013. Rest would be distributed in the next during the rabi season (October, 2013 to March, 2014).

Agriculture Credit during 2013-14 (Rs. In Crores)

Source: State Level Bankers Committee, http://www.slbcap.nic.in
If this target has to be met, the total budget requirement would be around
The loans are also not evenly or equitably distributed. Based on the data available the variations as follows. The region which is going to be formed as Andhra Pradesh (13 districts) had 61% of cultivated area while the total agriculture credit given till 30^th September, 2013 is 69% whereas the state of Telangana which has 39% area got only 31% of the agricultural credit.
Regional Variation in Agriculture Credit (2013-14)

* till 30^th September, 2013
Variations are also seen between districts within the two going to be formed states. For example in the 13 districts which are going to be formed as Andhra Pradesh the distribution is as follows. The four districts of Krishna, Guntur, East and West Godavari districts which have only 36% of the cultivated area got about 50% of agriculture credit.  Some people will get undue advantage compared to others.  The details of others districts is given in the annexure.
Regional variation within the newly forming state of Andhra Pradesh (2013-14)

 
The data of 2012-13 (annexure A) also showed the same trend.

1. The access to institutional credit is as low as 21% in the combined state of Andhra Pradesh. The government estimation is that the state has 40 lakh tenant farmers and they do not have access to institutional credit. AP government has enacted Loan Eligibility Card scheme Act which identifies Tenant Farmers and issues Identity card which can be used to get access to credit. During 2013-14 only 4.43 lakh cards were issued and among them only 20% of them got access to crop loans. Rest of the farmers had to depend on the private loans at higher rates.
2. Before going for 2009 elections the UPA government throughAgricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 has waived about Rs. 52,000 crores across the country.  In AP, the total number of farmers who benefited from the scheme was 77,55,227 and the total loan waiver and relief given to them was Rs 11,353.75 crore.  CAG found that in AP, a sum of Rs 40.76 lakh went to ineligible beneficiaries (132 accounts) and reimbursement was made for an amount of Rs 26.55 lakh though loans had not been disbursed (96 accounts).

B. Loans to DWRCA/Women Self Help Groups

1. Total loans to Women SHGs in Andhra Pradesh are Rs. 22,922.59 crore.

http://www.slbcap.nic.in
The TDP leader also promised the waiver of loans to women self help groups and is asking them not to pay the loans in every meeting.
TDP should make clear
a. Whose loans and what loans will waived.   Otherwise many farmers are now not paying their dues and at the end they all end up in problems.
b. what would be the quantum of loans that would be waived and what is the source of the resources.
Annexure A