The official machinery in West Godavri district has reportedly started the ground work pertaining to outstanding dues of farmers as Chief Minister-designate N. Chandrababu Naidu, in all probability, will fulfil his first election promise of waiver of farm loans during his swearing-in ceremony which is likely take place in the first week of June.
According to sources, the government agencies concerned at the district level have been told to be ready with the data on outstanding dues and financial implications involved in the loan waiver.
Sources in the banking sector say, the dues, including the non-performing assets (NPAs) related to crop loans stood at Rs 10,000 crore in West Godavari district. In addition to this, the loans disbursed during the current crop season and payable before June 30 stood at Rs 5,400 crore and the term loans extended by banks with different repayment schedules extending up to 5 years for purchase of agricultural inputs are estimated to be around Rs. 600 crore.
Loan Eligibility Card schemeThe bankers have also extended loans to the extent of Rs. 75 crore to tenant farmers this year under the Loan Eligibility Card (LEC) scheme. The share of cooperative banks in the outstanding amounts reportedly account to one fourth of the total amount. Agriculture, the mainstay of the district economy, receives a lion’s share of allocations (Rs 11,000 crore this fiscal) from the District Annual Credit Plan.
“It is not yet clear whether the loan waiver covers the advances extended during the current crop year or it is limited only to what is overdue,” said an official from the Agriculture Department.
The farmers in the delta and the upland tracts reportedly faced recurrent crop damages over the last five years. A series of cyclones spelt doom for the standing paddy crop in the delta area. In the upland region, erratic power supply and untimely rains also delivered a deadly blow on the cash crops and horticultural crops, crippling the farmers financially.
