SANGAREDDY: Farmers in the erstwhile Medak district are facing pressure from various banks over the repayments of crop loans along with interest. Ahead of the 2018 elections, Chief Minister K Chandrasekhar Rao had promised to waive crop loans up to Rs 1 lakh taken by farmers from various banks.
Due to the poll promise, many farmers who had taken loans ranging from Rs 50,000 to Rs 1 lakh defaulted on their payments as they believed that the government would waive their loans anyway.
Farmers’ associations claim that even in the past when the UPA government declared a loan waiver, the borrowers who had cleared the loans did not receive refunds. Consequently, many farmers delayed paying their loans, with the hope that the same scenario would repeat this time as well.
A farmer from Alladurgam Mandal, Pentaiah, said that he had taken a crop loan of Rs 40,000 from the bank. “The government promised a loan waiver, so I did not repay it. Now, the bankers have issued a notice asking me to pay the crop loan of Rs 40,000 along with an interest of Rs 6000,” he said.
A bank manager in Sangareddy, D Gopal Reddy, said that due to pressure from higher authorities on the bankers and non-payment of crop loans by farmers for the past four to five years, they had been forced to issue notices. “Even if the government declares a loan waiver, the bankers cannot avoid collecting the money until such orders are received. As these pending loans are affecting the promotions and increments of the bank’s staff in the districts, they have no choice but to issue notices,” he explained.
Agriculture department officials estimate that about three lakh farmers have taken loans of less than Rs 1 lakh in the former Medak district.
President of Telangana Rythu Rakshana Samiti, Kasala Raghavender Reddy, said that even though the government has promised a loan waiver to the farmers, it would be of no use if it was not implemented promptly. “If the government wants to provide assistance, it would be better if it directly deposits money into the farmers’ accounts,” he said.