With over 700 cr still in kitty, Palamuru banks fail to disburse loans to needy ryots
The banks in Mahbubnagar district have failed to meet the set target for the financial year 201819 of providing Rs 1,409 crore crop loans to farmers in the district As the financial year is nearing end, the banks have so far disposed of just Rs 710 crore loans to farmers as against the target of Rs 1,409 crore
Mahbubnagar: The banks in Mahbubnagar district have failed to meet the set target for the financial year 2018-19 of providing Rs 1,409 crore crop loans to farmers in the district. As the financial year is nearing end, the banks have so far disposed of just Rs 710 crore loans to farmers as against the target of Rs 1,409 crore.
The above numbers clearly tell that banks are no longer favouring to provide liberal financial aid to the agriculture sector and some pretext or the other, they are seeing to it that loans are not given to poor farmers as they feel it is very risky to recover them in case the corps fail due to various reasons.
According to agriculture experts, the banks have just crossed 50 per cent mark in providing loans to the farmers, while it should have been more than 85-90 per cent so that the agriculture sector see a rapid growth.
Going by statistics for each region in the erstwhile Mahbubnagar, the Wanaparthy district which had a loan target of Rs 610 crore, provided about 389 crore, which stands at 63 per cent loan disposal. Similar is the situation in Nagarkurnool. However, the farm loan targets in Gadwal district have reached 100 per cent which is appreciable.
As the next financial year is about to begin in next two months, the bankers are busy planning for the next year. Even NABARD has directed the lead banks as to how much farm loans should be given to the agriculture sector in the next financial year of 2019-20.
Last year, the NABARD has given clear directions to lead banks to provide Rs 4,296 crore to Mahbubnagar, Rs 3,001 crore to Nagarkurnool, Rs 2,077 crore to Gadwal and Rs 1,787 to Wanaparthy districts and accordingly the lead banks had devised the annual financial plan for these districts. However, the banks had set their own targets about 10 per cent less than what NABARD had directed to them and except for Gadwal, not other district banks in erstwhile Mahbubnagar have achieved their targets.
As the bankers are again gearing up for the loan target plans for the upcoming financial year, the farmers are opining that at least in the coming year the bankers must support the farmers in a saturated manner and help them reap good crops.
“Bank loan is a very crucial aspect that gives a great support for the farmers. However due to various reasons, the bankers are avoiding to provide loan to small farmers and only preferring those who are financially well off.
This kind of a strategy is degrading the farming sector and the poor are becoming poorer, while the rich farmer is becoming richer,” said Ramachander, a farmer from Mahbubnagar. Recently, the District Collector Ronald Rose had reviewed the bankers and gave them directions to prepare a loan planning for the upcoming year.