HYDERABAD: The state government is likely to announce a 12-month moratorium on crop loan repayments in 365 drought-hit mandals and reschedule outstanding loans over three to five years to ease the financial burden on farmers, official sources said on Friday.
Nalgonda and Sangareddy account for the highest number of drought-hit mandals at 28 each, followed by Suryapet (23), Vikarabad and Adilabad (20 each), Nizamabad and Rangareddy (18 each), Yadadri and Khammam (17 each) and Bhadradri-Kothagudem (16).
Under the proposed arrangement, repayment periods would be extended to 36 months in moderately affected mandals and 60 months in severely affected areas by converting crop loans into term loans. This would allow farmers to repay in instalments without being classified as defaulters or suffering damage to their CIBIL scores. Banks will also be asked to provide fresh and additional loans to meet farmers’ investment requirements for the next crop season, subject to applicable regulations.
The government will discuss extending repayment periods for cooperative bank loans with Nabard (National Bank for Agriculture and Rural Development). It will also enforce a zero-tolerance policy against forced recovery from farmers. District collectors will be directed to act on complaints immediately, coordinate with banks and ensure strict implementation of RBI guidelines on relief in drought-affected areas.
The decision came amid concerns over the actual flow of agricultural credit. The government had set a target of ₹58,152 crore in crop loans for the current kharif season. Though banks claimed to have achieved over 80 per cent of the target, a substantial portion reportedly involved book adjustments, with old outstanding loans being shown as fresh disbursements. Consequently, the actual cash reaching farmers for crop investments has remained limited.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: deccanchronicle.com
