Cash crunch hits loans to sheep farmers

Hyderabad: About 70 per cent of the farmers who had been given loans totalling Rs 100 crore by the National Cooperative Development Corporation (NCDC) for purchase of sheep and goat this year are now unable to avail of their benefits due to the cash crunch occasioned by demonetisation of Rs 1,000 and Rs 500 notes. Although the amount has been released and transferred to their respective accounts in November, the cash crunch has played spoilsport.

According to officials, about 10,000 farmers, mostly those affiliated to the Sheep and Goat Cooperative Unions, were selected by the Telangana government for availing of loans through NCDC. But only 3,000 to 4,000 could actually avail the benefit; for, they happened to withdraw their amount prior to demonetisation. The rest are seen as unlucky. “They are the ones whose processing of applications met with procedural delays and hence could not avail of the benefits,” said a senior official of the Animal Husbandry Department.

It may be mentioned here that the NCDC had launched the scheme as a pilot with an outlay of Rs 64 crore in the drought-affected Mahbubnagar district in 2012 and had successfully achieved its objectives during the two years of its implementation. About 4,000 farmers benefitted during the period.

After Telangana state was formed, the State government, which had gauged the success of the scheme, decided to extend it to other districts of Telangana. After the government pursued the matter with the NCDC, the scheme was extended throughout the State. Beginning from 2016-17, as part of the scheme, Rs 399 crore was allocated for three years. Farmers were provided loans between Rs 1lakh and Rs 5.36 lakh, along with insurance facility, with 20 percent subsidy.

By Md Nizamuddin