Other States

Banks in Maharashtra disburse just 30% loans this kharif season

Sowing for this year’s kharif season is already in progress, but banks in Maharashtra have achieved only 30% of the target of kharif crop loan disbursement.

Despite repeated warnings from Chief Minister Devendra Fadnavis, nationalised and commercial banks have failed to speed up crop loan disbursement as they have achieved only 17% and 18% of the target respectively. District Central Cooperative Banks (DCCBs) have till date achieved 58% of loan disbursement.

According to data available with The Hindu, the target of ₹43,844 crore set by the State Level Bankers’ Committee seems far from being achieved as banks have managed to disburse just ₹12,972 crore. Nationalised banks were given a target of ₹30,778 crore, of which they have managed to disburse only ₹5,331 crore. The target given to commercial banks was ₹27,918 crore, out of which only ₹4,899 crore has been disbursed.

Last year, loan disbursement was 54%, even though demand for crop loans diminished due to drought. DCCBs had disbursed 60% of loans while the remaining banks achieved 50% of the target.

Following the kharif review meeting in June, Mr. Fadnavis had said, “The demand for crop loans was less last year owing to drought. This year, the demand is likely to increase, but banks are likely to face action if they are found not providing crop loans to farmers.”

According to sources in the Agriculture Department, the delayed monsoon has pushed back sowing in some parts of the State. “The CM himself had asked farmers to delay the sowing process. We expect loan disbursement to speed up once the monsoon spreads through the State,” said the officer.

Another possible factor for the poor disbursement of loans is the delay in waiving crop loans. “Following loan waivers, farmers’ accounts were charged with interest, even though banks had accepted that they would not do so. As a result, crop loans cannot be disbursed to those accounts,” he said.

Agriculture Minister Anil Bonde on Tuesday said the government will conduct cloud seeding experiments in three districts and is waiting for instructions from the India Meteorological Department. “Many parts of the State have yet not received rains and this experiment is being done to overcome the problem,” he said.

Meanwhile, ruling coalition partner Shiv Sena will hold a protest rally in Bandra Kurla Complex against insurance companies, demanding they diburse the amount that farmers claim.

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Printable version | May 14, 2021 11:18:38 PM | https://www.thehindu.com/news/national/other-states/banks-in-maharashtra-disburse-just-30-loans-this-kharif-season/article28494884.ece

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