Crop loan waiver: Telangana owes banks Rs 7,500 crore

The TRS-led State government had waived off crop loans in 2014 through quarterly instalments. As compared to 2014, the number of farmers increased by around five lakh.

Published: 15th January 2020 07:26 AM  |   Last Updated: 15th January 2020 07:26 AM   |  A+A-

Farmers, Agriculture

For representational purposes. (File | EPS)

Express News Service

HYDERABAD: To fulfil its election promise of crop loan waiver, the Telangana Rashtra Samithi (TRS)-led State government will have to pay banks around Rs 7,500 crore in the last quarter of the fiscal year (January to March).

The State also needs to disburse Rs 7,000 crore for the Rythu Bandhu scheme — a welfare programme to support farmers’ investment for two crops a year — in the last fiscal quarter.

The TRS had promised in its election manifesto to waive off a maximum of Rs 1 lakh loan for each farmer. The State government announced to waive off the loans in quarterly instalments, starting with the 2019-20 budget year.

The total number of beneficiaries was estimated to be around 40.5 lakh. The total crop loan amount was estimated to be a little over Rs 30,000 crore, which includes around Rs 2,000 crore interest amount.

The State government had allotted Rs 6,000 crore for crop loan waiver in this year’s budget. However, due to the delay in implementing the scheme, the government now also has to pay interest to the bankers.
However, farmers do not have to worry as the government has instructed bankers to issue fresh crop loans to farmers, as the government is going to pay the farm loan dues.

The TRS-led State government had waived off crop loans in 2014 through quarterly instalments. As compared to 2014, the number of farmers increased by around five lakh.

This is because the famers divided the lands among their families to get the Rythu Bima benefit.
The cut-off date for implementing the crop loan waiver is December 11, 2018, and dues till that date will be cleared by the State government on behalf of the farmers.

Stay up to date on all the latest Telangana news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp