Release of zero-interest subsidy sought
Vijayawada: The Andhra Pradesh Koulu Rythu Sangham (Tenant Farmers’ Association) has demanded that the coalition government immediately release the pending zero-interest subsidy and credit it directly to the bank accounts of small, marginal, and tenant farmers who have availed crop loans up to Rs 1 lakh.
Association State President A Katamaiah and General Secretary P Jamalaiah made this demand in a statement issued on Tuesday. They alleged that since the coalition government came to power, not a single rupee has been released towards interest subsidy, pushing tenant farmers into severe financial distress. Even farmers holding Crop Cultivator Rights Cards (CCRCs) have received loans only partially, and the non-release of interest subsidy on these loans has worsened their situation, they said.
Explaining the issue, the leaders said banks generally charge 9 per cent interest on agricultural loans. After accounting for Central government subsidies under Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI), the remaining 4 per cent interest burden must be borne by the State government.
As per norms, this amount should be credited directly to farmers’ accounts if the loan is repaid within a year, making it effectively a zero-interest loan, they said. However, due to the government’s failure to release funds, banks are collecting full interest from farmers, they alleged.
The association leaders pointed out that crop losses due to natural calamities over the past two years, lack of remunerative prices, and non-implementation of free crop insurance have already crippled tenant farmers. “Even the hope of timely interest subsidy has been dashed,” they lamented.
The leaders demanded the immediate release of pending interest subsidy from the 2024–25 kharif season, crediting of subsidy amounts to all eligible tenant farmers’ accounts, and hassle-free bank loans up to Rs 2 lakh withoutsurety as per RBI norms. They warned of intensified agitation if the government fails to respond promptly.
