People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


No. 44

October 31, 2010


AP Govt Hand in glove

with MFIs: CPI(M)


THE central and the state governments were hand in glove with the micro finance institutes, charged CPI(M) Polit Bureau member and Andhra Pradesh state unit secretary, B V Raghavulu. He expressed surprise at the lack of a provision in the recent ordinance issued by the state government for restricting the exorbitant interest rates being collected by these institutes that range from around 30 per cent to 100 per cent. He demanded that this usury must be immediately restricted.


The state committee meeting of the CPI(M) which was held at M B Bhavan, Hyderabad on October 21 was presided over by Sarampalli Malla Reddy. The state committee meeting discussed about the problems that are tormenting the people of the state and the ways and means for their resolution, Raghavulu told the media after the meeting.


Blaming the state government for the recent suicide deaths of around a dozen people due to the harassment of the micro finance institutes, the CPI(M) leader asked the government to change its deceptive and escapist attitude. The government must act firmly to prevent the micro finance institutes from cruelly collecting the usury loan amounts from the hapless poor victims.


Raghavulu criticised the AP chief minister K Rosaiah for declining to admit that Rahul Gandhi is in favour of the MFIs and reminded him about the words of praise showered upon MFIs by Rahul Gandhi at their inception. He attacked Rahul Gandhi for keeping  mum even after so many suicides under the impact of the pressures brought about by the MFIs on the people and so much of rage prevailing in the state around the issue. “If a single statement by Rahul Gandhi on behalf of the tribals of Orissa could stall the mining by the Vedanta Company in that state, as was very much publicised, then why couldn’t he repeat the same in the case of these sad suicides of the victims of the MFIs in the state of AP”, he questioned. Raghavulu also raised the question as to why the central government that strived so hard to get the nuclear accidents compensation bill passed in the parliament at the earliest, is trying to push under the carpet the draft act pertaining to the MFIs that was completed in 2007 itself.





The state government has to respect the commitment it has made to the all party meet, that there will be procurement of grain as there is vacancy in the godowns. But, this commitment is turning out to be an empty phrase in practice, the CPI(M) leader pointed out, mentioning the real scenario around the state with the example of the district of Nalgonda. The sweet and placating words of the state government are turning out to be empty phrases in practice, he said and demanded procurement of grains after emptying the godowns. He also demanded for the strengthening of the co-operative societies in the state.