Andhra govt decides to set up Tenant Farmer Groups as per NABARD regulations

Andhra Pradesh government has embarked on a program to provide systemic leverage to millions of tenant farmers. Commercial banks and co-operative banks are not inclined to give individual crop loans despite the Crop Certification (CCRC) hence the government has decided to set up farmers' associations and give them credit facilities. Despite issuing cards to over 6 lakh tenants in the state, bankers have lent only to 12-13 per cent of the crop on various pretexts. CM Jagan reviewed the situation and wanted to see government subsidies and crop loans for all tenant farmers who are actual cultivators.

NABARD has made the proposal as it has the option to lend credit to Joint Liability Groups and JLGs as per the regulations. The SLBC subcommittee also agreed and bankers agreed to lend to JLG groups along with those with CCRC cards. He assured that the Agriculture Department officials would allay the doubts expressed by the bankers and assist them in repaying the loans.

Each farmer assurance center in the state has at least ten grower associations and no less than five tenant farmers in each community. Farmers would be assisted in lending as per NABARD regulations. The actual cultivators are identified on the basis of this crop registration. Growers' associations are formed only with them. These are certified by the Village Agricultural Assistants (VAAs) of the respective villages. Banks lend according to the rules set out on the basis of this crop data. Agriculture department officials said that the members will come forward to repay the loans as there will be collective responsibility.