Farmers face trouble as banks refuse to give loans

Mahbubnagar: Despite the State government clearing the fourth and final instalment of farm loan waiver of Rs 675 crore during March-April this year, the banks are refusing to grant fresh loans or renew the existing loans to the farmers in all the 4 districts of erstwhile Mahbubnagar. Because of this, more than 8.40 lakh agriculture farmers in Mahbubnagar, Nagarkurnool, Wanaparthy and Gadwal districts are facing tough time to meet the agriculture expenses during this Kharif season.

Kethavath Gopal of Vislavath Thanda, from Vollur village from Jadcherla Mandal in Mahbubnagar district is regularly visiting the Grameena Vikaasa Bank to get fresh agriculture loan by mortgaging papers of his 3 acres land since past 2 months, however, the bank manager is avoiding and asking the farmer to come on a later date.

Similarly is the case with another Somla Nayak, of Shankarayapally thanda, who after visiting different banks have got vexed up due to the rude attitude of the bankers and is relying on private lenders for his agricultural expenses. “We have been roaming around the bankers for fresh loans since past two months.

Not a single bank has come forward to lend us new loans. Vexed up with this we are approaching private lenders. Even though the interest rate is higher, we have no other option,” says Peethya Nayak, another farmer. When enquired the same with the agriculture officials and bankers, they have a different version to narrate.

According to senior officials in the district agriculture office (DAO) loans of all the 8.40 lakh farmers who have taken from banks have been waived off and about Rs 2,700 crore have already been deposited with the banks in the district. However, the bankers are denying renewing fresh loans to the farmers due to pending interests on the loan amount.

“It is true that the government has waived off the principal loan amount, however we are asking the farmers to clear the interest accrued on the loan. Without clearing the pending interests, bank rules do not allow us to renew fresh loans,” said a Bank Manager from Andhra Bank on anonymity.

and final instalment against the farm loan waiver loan is yet to be credited into the accounts of the farmers. It is said that the banks are yet to complete the process of crediting the amount to the respective accounts of the farmers. Because of this delay the farmers are facing problems in getting new loans.

This year for Kharif, the agriculture department has set a target of distributing Rs 1399 crore of agriculture loans to all four districts in the erstwhile Mahbubnagar. However till date only Rs 200-300 crore have been distributed. “Clear directions have been given to the bankers to issue bank loans to the farmers.

“Though the pace of loans is slow due to some technical and procedural delays, we are confident by end of August we will reach maximum target,” said Sucharita, District Agriculture Officer, Mahbubnagar. For the entire 2017-18, the agriculture department is expecting a target distribution of Rs 2332 crore to all farmers in the untied Mahbubnagar.

In the 4 districts of Mahbubnagar, Nagarkurnool, Wanaparthy and Gadwal, about 2.80 lakh hectares of areas is going to be under cultivation of different crops. Among them Cotton, Maize, Paddy and Pulses are preferred by the farmers. Majority loan seekers in the district are Cotton, Maize and Paddy cultivators, informed the officials of Agriculture Department in the district