HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy has expressed the helplessness of the State government in compensating more than Rs. 5,000 to each of the farmers who have repaid their crop loans prior to the Centre’s loan waiver scheme.
The government was not in a position to pay more than Rs. 5,000 for prompt repayments this year. It would hike the quantum of compensation next year, he told at a felicitation function organised by the AP State Cooperative Societies Secretaries and Employees Union, affiliated to the All-India Trade Union Council, here on Sunday.
He was responding to a request for a hike in compensation by AP State Cooperative Bank chairman Vasantha Nageswara Rao.
Dr. Reddy complimented the paid secretaries of cooperative societies for the recovery of crop loans from 22 lakh borrowers.
“But, your efforts have caused loss to farmers who repaid promptly,” he remarked.
Referring to the shortage of fertilizer, he said the crisis cropped up in a matter of seven to ten days when the Centre was trying to come to terms with the need to hike subsidy on import of chemical fertilizer by Rs. 73,000 crore. The panic stricken dealers hoarded fertilizer to meet their sales up to August – September. In normal circumstances, however, they would have stocks sufficient for June–July.
He blamed it on the huge trade deficit of countries exporting chemical fertilizer for the temporary shortage. The deficit which used to be US $ 13 billion annually till a year ago shot up to US $ 14 billion a month on account of a steep increase in price of crude oil.