Loans to tenant farmers remain a distant dream

Highlights

The tenant farmers in the district are at the receiving end in getting bank loan which was extended to land owners, after decades of fight for it. This kind of situation prevailed due to lack of coordination between administration and bankers and the bankers are indifferent to sanction loans to them showing technical reasons.

Kadapa: The tenant farmers in the district are at the receiving end in getting bank loan which was extended to land owners, after decades of fight for it. This kind of situation prevailed due to lack of coordination between administration and bankers and the bankers are indifferent to sanction loans to them showing technical reasons.

District Collector T Baburao Naidu during video-conference held on Friday with officials expressed serious concern over poor performance of revenue officials and bankers in lending loans to tenant farmers. According to official sources, only 554 tenant farmers have secured crop loans from banks against 1,800 under Loan Eligibility Cards (LEC) by the administration. The banks did not sanction loans to remaining 1,326 farmers due to technical reasons.

The main reason for tenant farmers not getting loan is most land owners are reluctant to sign the form expressing their willingness to sanction loan from banks. Despite the government clarifying that loan provision to tenant farmers will no way affect the rights of land owners, many fear that the extension of bank loan facility to tenants will strengthen their claim over the land, which in long run will work against the interest of landowner.

“Despite the government has issued assurance on behalf of tenant farmer in loan recovery aspect, but we fear once they got loan from bank they will claim ownership of that land in future. That’s why most land owners are reluctant to counter sign the papers for issuing loans to tenant farmers,” said B Venkataramana Reddy of Porumamilla to The Hans India.

This apart, lack of publicity in villages on loan facility was also one of the reasons for receiving poor response from tenant farmers. Though the government directed to give wide publicity to the programme in grama sabhas, it did not reach the people at grass-root level. The Collector said the district administration has taken all measures for the success of new initiative. He said coordination meetings were held between officials and bankers for creating awareness on loan facility among tenant farmers.

By: M Srinivasa Rao

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