Banks fail to meet farm loan target

Banks fail to meet farm loan target
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Highlights

For this kharif season, the target for agricultural loans is fixed at Rs 1,350 crore, but so far the bankers have sanctioned loans worth Rs 538 crore only. There are 27 banks both in public and private sector with 275 branches across the district.  According to norms, loan limit per acre of paddy is Rs 27,000 basing on estimations of the agriculture department, paddy crop is being cultivated th

Srikakulam: Banks, which are supposed to grant loans for farmers for this kharif season, have failed to meet the target in the district despite receiving directive from the district administration and public representatives in this regard.

For this kharif season, the target for agricultural loans is fixed at Rs 1,350 crore, but so far the bankers have sanctioned loans worth Rs 538 crore only.

There are 27 banks both in public and private sector with 275 branches across the district. According to norms, loan limit per acre of paddy is Rs 27,000 basing on estimations of the agriculture department, paddy crop is being cultivated this kharif in 5.15 lakh acres and Rs 1,390.05 crore should be given as crop loan which is more than the target.

The loan limit for sugarcane crop is Rs 50,000 per acre and estimated cultivated land during the current season is 16,137 acres and Rs 80.69 crore should be granted as loans to the farmers. Rs 1,470.74 crore should be granted as loan for paddy and sugarcane which is Rs 120 crore more than the fixed target.

Meanwhile, farmers, who cultivate other crops like groundnut, horticulture and vegetables have to take loans from money lenders for investment.

Crops loans can be granted to farmers for kharif season till September 30, but June and July are the months when the farmers require the money most.

The delay in sanctioning loans is causing problems for the farmers and they don’t have option, but to look towards private money lenders.

“I went to bank for three times for loan, but in vain and had to borrow from a private person for Rs 3 per cent interest per month,” said A Suryanarayana, a farmer from Nakkapeta village in Laveru mandal.

When contacted, Lead Bank district manager P Venkateswara Rao said that they are granting loans by checking renewals and after verifying details of loan waiver scheme and admitted that even half of the fixed target has not been completed so far.

By:Ch Lakshmana Rao

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