Credit blues hit kharif operations in Telangana

Delay in commencement of institutional credit disbursement likely to affect sowing

Notwithstanding the copious rains received in most parts of Telangana and availability of seed and fertilizer in ample quantities, the delay in commencement of institutional credit disbursement, crop loan release by banks, is likely to affect the sowing operations in the current kharif season.

Though the Agriculture Department has estimated the credit requirement for kharif operations at nearly Rs. 26,000 crore, the State government has released Rs. 2,043 crore out of Rs. 4,250 crore required for waiver of second instalment of crop loan waiver only on June 20.

“It is a well-known fact that the banks won’t take up renewal of crop loans unless the government releases money for loan waiver scheme and the farmers get fresh crop loans only after their existing loan accounts are renewed,” sources in the government said.

Over 36 lakh farmers who were extended the crop loan waiver benefit by the TRS government last year in tune with its pre-poll promise secured fresh loans very late last year due to the similar delay. They would get fresh loans only after the government clears the entire amount of second instalment, the sources stated.

According to officials, more than 55 per cent of the 55.54 lakh farmers engaged in cultivation in Telangana are small and marginal farmers and another 26 per cent are semi-medium farmers and most of them depend on banks for their credit needs as do the remaining 15 per cent medium and 4 per cent large farmers. “We have already positioned 3.02 lakh quintals of subsidised seed for various crops out of about 4.17 lakh quintals required for kharif cultivation and the farmers have already lifted nearly 2.07 lakh quintals from sales counters,” a senior officer in the Agriculture Department told The Hindu adding that the demand for seed of soybean, paddy and maize was high. Similarly, sufficient quantity of fertilizer was also positioned at various places, the official said.

As 410 out of 443 mandals, excluding Hyderabad district, have recorded normal or excess rainfall so far this month the farming community is eager to take up sowing operations, provided all other inputs are made available to them in time. Sowing of seed has been done in over 4.5 lakh hectares already against 3.5 lakh hectares normal extent till June 20.