Thousands of tenant farmers denied bank loans

​Adilabad: Thousands of tenant farmers in Adilabad district are leading a miserable life, experiencing problems in securing not only bank loans, but also not many subsidies from the government, although it professes that loans will be provided to all. But in reality, banks give credit to only a few farmers, in the process, causing severe hardship to them even though they are in possession of valid and authentic documents.

As many as 471 farmers have been identified in 2016-17 as tenants, after the revenue officials issued them loan eligibility documents. But only nine of them received bank loans, denying the benefit to 462.

Each of them got only Rs.1.35 lakh as loan, as officials of the Agriculture and Revenue departments have failed to secure these ryots bank credit, alleged District Farmers’ Association president Daratla Krishnaiah while speaking to The Hans India. He also alleged that not many are being recognised as tenant farmers.s

As many as 466 tenant farmers of Adilabad revenue division and five of Utnoor division have been given loan eligibility documents. Among these, only nine in Adilabad have been sanctioned loans, while those from Utnoor have not been given the benefit.

As many as 1,681 tenant farmers from the two divisions had been given loan eligibility documents last year. Out of them only 53 secured Rs.9.83 lakh as credit —28 from Adilabad getting Rs. 4.98 lakh and 25 of Utnoor Rs.4.80 lakh. None from eight mandals in the Utnoor division got loan this year. With bank loans declining every year, tenant farmers are a worried lot.

As a result, they are being forced to approach private traders for making farm investments, paying 30 per cent interest and getting trapped in debt burden. There are as many as 200 brokers in the Adilabad market yard, each of whom reportedly extending loans of Rs.1 crore to Rs.2 crore.

Speaking to The Hans India here on Tuesday, a farmer, Lakshminarayana, said that brokers have been subjecting farmers to harassment in getting loans, while expressing anguish. Boranna, president of Rythu Atmahatyala Nivarana Sangham lamented that farmers were resorting to suicides unable to bear the debt burden after their crops failed, while sharing the concern.

Although 10,000 tenant farmers are said to be active in all 18 mandals of the district, according to farmers’ organisations. In the old Adilabad district, the Revenue officials had identified 25,000. The organisations allege that these ryots are not getting bank credit because of denial of eligibility documents, as in the case of Mahendar of Jandhapur village in Thamsi mandal.

He had taken 25 acres on a lease of Rs.1.6 lakh, but did not get the eligibility letter, forcing him to approach private money-lenders for loan to take up cultivation. Mahender failed to get the expected output and assistance from the market.

He was forced to commit suicide by consuming pesticide. There are many farmers like him who are ending their lives after taking loans on high interest and suffering crop loss. Keeping this in view, farmers’ organisations have appealed to the State government to provide relief to tenant farmers.

Another problem facing tenant farmers is possession of agreement documents/deeds given by the land-owner for securing bank loan. Such agreements are being signed by those holding land pattas. Lands are being taken on lease based on only oral understandings.

This is resulting in the Revenue officials refusing to provide loan eligibility documents. Some patta-holders have not only been giving their lands on lease, but also taking bank loans. This is denying bank credit to tenant farmers, who are losing heavily on account of lack of compensation and insurance for crop loss.

Farmers’ organisations have urged the government to arrange bank loans to the tenant farmers without valid eligibility documents after conducting a survey.