More than two lakh farmers in the district are eagerly awaiting the loan waiver scheme promised by TDP president and Chief Minister-designate N. Chandrababu Naidu. It is estimated that Rs. 1,700-crore worth loans will have to be waived if the new CM keeps his word.
With banks having disbursed Rs. 1,100 crore to farmers during 2013-14, the accumulated loans stand at Rs. 600 crore. Now, the banks have adopted a wait and watch policy before issuing fresh loans during the kharif season. “We will take a decision on fresh loans after a formal announcement comes from the new government on loan waiver,” said a senior executive of a public sector bank.
Incidentally, farmers are worried that banks will not issue fresh loans as of now. In fact, most farmers are in deep financial distress, thanks to floods and Cyclone Phailin, which devastated crops in the district.
“Farming activity has become a lottery, thanks to natural calamities. Moreover, it has become expensive with the escalation of labour charges and prices of inputs, particularly seeds and fertilizers. So, the new government should support us through the loan waiver scheme,” said B. Ramulu, a farmer from Narasannapeta.
For the new government, implementing the loan waiver scheme will be a Herculean task. However, it can be carried out in phases by going for long reschedule plans.
BJP Kisan Morcha national executive member Pudi Tirupati Rao said the government was bound to implement the scheme, as it was part of the TDP’s election manifesto.
“Farmers will not leave agricultural activity if the scheme is implemented properly. Besides instilling confidence among farmers, the scheme can help them overcome financial distress. So, we want to submit a detailed proposal to the government,” Mr. Rao added.
