The Department of Cooperatives has planned to disburse ₹ 545 crore as credit to farmers through Primary Agricultural Cooperative Societies (PACS) in Thanjavur, Tiruvarur and Nagapattinam districts before December.
In Thanjavur district, the department is poised to disburse a minimum of ₹ 220 crore as crop and term loans through its 242 PACS. In Tiruvarur district, farmers are to get ₹ 185 crore as loans through 137 PACS.
In Nagapattinam district, they are to get ₹ 140 crore as loans through the 122 PACS. The credit is being routed through Thanjavur District Cenrtal Cooperative Bank and Kumbakonam Central Cooperative Bank as they both cover the three districts.
With the samba and thalady paddy cultivation processes commencing after water release from the Mettur Dam on October 2 and from Grand Anicut on October 5, farmers started approaching PAS for funds. So far, a sum of ₹ 70.50 crore has been disbursed to farmers in Thanjavur district, over ₹ 50 crore to farmers in Tiruvarur district and ₹ 23.40 crore to farmers in Nagapatinam district.
However, sources claimed that the three districts would invariably exceed their crop loan target before December.
Some farmers claim that not all are benefiting from PACS. Farmers could not repay the credit availed from PACS.
What will they do if they are asked to repay a portion of principal or interest to avail fresh loans now, asks Samy Natarajan, Thanjavur district secretary, Tamil Nadu Vivasayigal Sangam.
“The government move to convert short term crop loan into medium term loan and medium term loan into long term loan has not helped us either. Most of us remain defaulters in the eyes of the PACS and thus we are not eligible to get fresh crop loans,’’ says another farmer K. Muthalagu of Vaduvur in Tiruvarur district.
The government announces increased crop loan disbursal target every year. Instead, it should increase the coverage area and not the sanctioned amount, says Dhanapalan, general secretary, Cauvery Farmers Protection Association.
It must come out with clear policy regarding disbursal of crop loans.
