Coffee planters demand scrapping of SARFAESI Act

The government should scrap the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, as it is detrimental to farmers, said the Taluk Coffee Planters’ Association.

Addressing reporters here on Wednesday, association president Mohan Bopanna said that the commercial banks serve an intimation letter after 60 days of the due date of agricultural loan repayment.

Later, without giving any notice, they can auction the properties belonging to the farmers. This will bring the families of farmers to the streets, he added.

“There is a nexus between the land mafia, banks and the middlemen. In the auction, the agricultural lands will be purchased at a low price and will be converted for other commercial purposes. As a result, there will be not enough agricultural produce, further resulting in scarcity of food,” felt Mohan Bopanna.

He further said that the growers have experienced losses due to natural calamities and Covid-19.

Commercial banks have been using SARFAESI Act to recover the loans from farmers. The banks should postpone the recovery of loans, considering the pathetic condition of farmers, he said.

Taluk Coffee Planters’ Association vice president B M Lava said that the coffee and pepper have been withering due to excessive rainfall. The wild animals too are destroying crops.

The state government should announce a compensation of Rs 1 lakh per hectare, he added.

Association office-bearers S C Prakash, B G Poovamma, S B Yashwanth were present.