About a month-and-half into kharif season, a good number of farmers find themselves running from pillar to post to raise capital. It is time their young crops get a dose of fertilizer as growth booster.
Raising capital, however, has become quite a difficult task now what with banks reluctant to sanction fresh loans. Many banks are insisting on renewing of the loans by clearing off their old debt.A case in point is a bank branch in Gimma of Jainad mandal which is denying fresh loans to farmers. When the manager was questioned by authorities on why he was not advancing fresh loans to farmers, he asked them to get a direction from the State Level Bankers with regard to book adjustment of previous loan.
Adilabad has over 3 lakh accounts of farmers who draw crop loans from various banks. The renewal of loans is an estimated 50 per cent of the above, though this is not a bit of official statistics.The Telangana Grameena Bank which has the largest share of crop loaning at over Rs. 1,000 crore has completed about 60 per cent loaning in its branches in non-tribal areas. In the agency areas branches the percentage of loaning is quite dismal.
