Bankers urged to extend fresh loans to ryots

Special Correspondent

District Consultative Committee discusses credit needs

Crops in 90,000 acres lost in floods, says CollectorBankers agree to reschedule loans in affected mandals

ONGOLE: District Collector B. Udaya Lakshmi has appealed to bankers to extend fresh loans liberally to flood-hit farmers and help them raise their crops again.

Addressing a special meeting of the District Consultative Committee (DCC) convened here on Wednesday to discuss the credit needs of farmers in 14 flood-hit mandals, Ms. Udaya Lakshmi said that crops in an extent of 90,000 acres were lost due to floods.

Seed subsidy

She said that the government was supplying seed on 50 per cent subsidy to all the affected farmers besides Rs. 750 per acre compensation. Agricultural officials would complete enumeration of crop loss in the next two or three days and start supplying 900 quintals of paddy seed at a subsidy.

The bankers had agreed to reschedule the crop loans in the affected mandals without insisting on `annavari' certificate. After some discussion, they agreed to sanction Rs. 10,000 per acre of paddy in areas where farmers lost the crop in advanced stage of growth and Rs. 4,500 per acre where the crop was lost in initial stages of growth.

Reserve Bank of India representative Ratnam said that Prakasam was one of the 16 districts selected for helping distressed farmers under special package announced by the Prime Minister to prevent suicide.

The bankers were required to waive the entire interest on overdue agricultural loans as on July 1, 2006, reschedule the loan over a period of 3-5 years with moratorium of one year and sanction fresh loans to farmers. The State and Central Governments would meet the cost of interest waiver equally. Saying that the RBI had issued clear instructions in this regard, he asked the bankers to implement them without any hesitation and provide relief to all farmers in the district. A credit flow of Rs. 13,817 crores would be ensured in the debt-stressed districts of Andhra Pradesh during this year.

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