Institutional credit remains elusive for tenant farmers

Only a few succeed in getting Crop Cultivators Rights Card

November 23, 2019 01:20 am | Updated 01:20 am IST - ONGOLE

Tenant farmers had hoped that they would get access to the elusive institutional credit and government subsidies when the A.P. Crop Cultivators Rights Bill was passed in the Assembly coinciding with the kharif cropping season.

But their hopes were dashed as a majority of the landlords did not come forward to enter into a written agreement as per the Act to be eligible for the crop loan and input subsidy under the YSR Rythu Bharosa - PM Kisan Samman Yojana and other benefits due to the land holders.

“Though there are over 1.60 lakh tenant farmers in the district, only 8,000 succeeded in getting the Crop Cultivators Rights Card (CCRC) to avail institutional credit, insurance and other benefits without affecting the rights of the land owners,” explained N. Ranga Rao, State president of the Andhra Pradesh Rythu Sangham-led Kavulu Rythu Sangham (KRS).

“Tenant farmers account for 80% of farmer suicides,” he said.

The hitch

Even to those with the CCRC, institutional credit remained elusive as the land owners, in many cases, had already taken crop loan from banks showing the same survey number. As a result, the loan applications of tenant farmers with the CCRC were not entertained.

A minuscule section of tenant farmers was not given crop loan as per the scale of finance.

“While a land owner is given ₹80,000 per acre for cultivating chilli, one of the main commercial crops in the district, the tenant farmers are given an ad hoc amount of ₹10,000 to ₹20,000. As a result, they continue to rely upon private money-lenders for credit and purchase of farm inputs on credit from fertiliser shops and end up in a debt trap,” said KRS district secretary Balakotaiah.

Those cultivating Inam, Endowment and Trust lands are in an unenvious position.

Revenue authorities should give a direction to the officials concerned at the grass-roots level to give CCRC and ensure sanction of institutional credit, he said.

Plea to govt.

Tenant farmers, who are left high and dry, want the government to identify the tenant farmers by holding Gram Sabha in the villages and ensure that the intended benefits are extended to them as they cultivate land coping with the vagaries of monsoon.

A statement prepared by the district administration showed that only 14,302 tenant farmers were extended bank credit to the tune of ₹42.87 crore.

This was after the introduction of the Loan Eligibility Card (LEC) and formation of the Joint Liability Group (JLG)

Credit extended to 10,350 JLG farmers was ₹14.92 crore and to 2,250 LEC holders ₹15 crore. The extent of neglect these vulnerable sections of farmers can be understood as the total agriculture loans sanctioned in the district during kharif was ₹5,040 crore against the target of ₹5,085 crore.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.