Banks and financial institutions have been advised to desist from adjusting the crop procurement prices credited to farmers’ accounts against the outstanding loan amounts of those individuals.
At a review meeting held on Wednesday to discuss the crisis plaguing farmers because of the drought, Deputy Commissioner D. Randeep issued the directive and cautioned banks of action when farmers said that a majority of them barely receive any remuneration for their crops, as the amount received from the sale of agricultural produce is adjusted against the outstanding loan amount.
The farmers were told the State government had sought over ₹4,000 crore as crop compensation from the Centre, of which ₹1,742 crore has been allocated to the State and ₹450 crore released so far.
The Deputy Commissioner said the amount would be credited to the accounts of farmers with Aadhaar and other details in the bank database. There are 1.2 lakh farmers in the database and the target is to register 1.5 lakh. But out of the 1.2 lakh registrations, there is mismatch in the details in nearly 20,000 farmers, said Mr. Randeep.
Farmers highlighted what was perceived to be a major limitation to the crop insurance scheme — the awarding of compensation only in case of failure of the notified crops. They asked for this clause to be amended and the inclusion of crops such as sugarcane and cotton under the purview of the scheme.
Sugarcane Cultivators’ Association president Kurubur Shanthakumar said the present cane procurement price does not match the actual sugar recovery or yield which, he said, is 10.5% to 11% a tonne in Mysuru district. The DC promised to discuss these issues with the officials concerned.
