Arrears of PRS loans won’t affect farmers’ CIBIL score, says Minister G R Anil

Speaking to the media on Saturday, Anil said the entire liability of repaying PRS loans is on the state government, and hence farmers do not incur any liability. 
Image used for representational purpose. (File photo)
Image used for representational purpose. (File photo)

THIRUVANANTHAPURAM:  Even as a farmer died by suicide in Thakazhy blaming the government over PRS loan, Food and Civil Supplies Minister G R Anil clarified that farmers do not bear the burden of PRS loans.

Speaking to the media on Saturday, Anil said the entire liability of repaying PRS loans is on the state government, and hence farmers do not incur any liability.  “The arrears of PRS loans have been fully paid. Therefore PRS loans will not affect the CIBIL score of farmers,” the minister said.

Terming the suicide shocking and unfortunate, the minister clarified that PRS loans are given to farmers on Supplyco’s guarantee, to avoid the delay in disbursing paddy procurement price. 

“Availing PRS loans won’t lead to any kind of financial burden on farmers, as the amount and interest are paid by Supplyco. In 2021-22, the price of paddy procured from this farmer was given as a PRS loan through the Federal Bank, and the amount was repaid by the government within the time frame. In 2022-23, 4,896 kg of paddy was procured from him and an amount of Rs 1.38 lakh was given as a PRS loan through Kerala Bank. The time for repayment of the loan is not yet due. Hence it’s clear that delay in loan repayment is not the reason for the farmer’s low CIBIL score,” the minister said. 

He said that paddy procurement is done as a joint initiative by the state and Central governments. Usually, the Central share is given only after the rice produced from the procured paddy is distributed through ration shops. It will cause a delay of at least six months. That’s why the state gives money through PRS loans to avoid financial stress on farmers. He added that the state government has now sanctioned Rs 200 crore for the purpose.

V Muraleedharan blames state government

Union Minister V Muraleedharan came down heavily on the state government for the farmer suicide. He alleged the government was solely responsible for the suicide. “Government’s failure in smooth processing of paddy procurement led to the tragedy,” he said.

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