Hyderabad, Nov 10 (SocialNews.XYZ) Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Tuesday urged banks to restructure crop loans of eligible farmers or reschedule them in accordance with RBI guidelines in view of drought conditions, and provide fresh loans required for the Rabi season in a timely manner.
He asked banks to stand by farmers, taking into account the drought conditions in the state caused by the El Nino phenomenon and the financial hardships faced by the farming community.
Addressing the State Level Bankers' Committee (SLBC) meeting, he emphasised that bankers at the field level must take the initiative to ensure there are no delays in the sanctioning of loans to farmers.
The banks were advised to promptly sanction the Rs 38,268 crore crop loans earmarked for the Rabi season. The state government voiced concern that only 53% of the Rs 96,943 crore loan disbursement target—set for the period ending September 2026—has been achieved so far. It was noted that the disbursement of monsoon farming loans has reached only 17% of the target, and banks were urged to accelerate the loan sanctioning process.
The Deputy CM stated that 365 mandals across 31 districts have been declared drought-affected, with 111 of these mandals being severely impacted. Due to a lack of rainfall, farmers' investments and incomes have suffered; under these circumstances, they require immediate support from the banking system. It was emphasised that the failure of the monsoon should not be allowed to damage the relationship between farmers and banks. It was advised that widespread awareness be created regarding the debt relief measures available to farmers.
District Collectors, Agriculture Department officials and Lead District Managers should work in coordination to implement RBI guidelines at the field level.
Emphasis was placed on rescheduling existing loans and ensuring the timely disbursement of fresh crop loans to eligible farmers. Special priority should be given to small and marginal farmers, tenant farmers, and families dependent on agriculture-allied sectors.
It was suggested that financial support be provided for low-water-consuming crops, crop diversification, micro-irrigation, storage, processing, and Farmer Producer Organisations (FPOs). Banks bear the responsibility of providing credit and market support to encourage farmers to shift toward alternative crops, he said.
He urged banks to assist in creating alternative income sources for farming families, rather than having them rely solely on agriculture. It was suggested that, for the current season, efforts be made to provide additional employment opportunities to at least 10 to 15 per cent of these families.
Agriculture Minister Tummala Nageswara Rao has urged bankers to take a special initiative to support the farming community, given the rainfall deficit in the state caused by the 'Super El Nino' phenomenon. He advised bankers to stand by the farmers, keeping the current situation in mind—an approach that goes beyond routine banking operations.
The minister emphasised that in drought-affected mandals, crop loans should be immediately rescheduled or restructured in accordance with RBI guidelines.
He further stressed that bankers themselves should take the lead, ensuring that farmers are not forced to make repeated, burdensome visits to bank branches. The minister stated that water storage levels in reservoirs have dropped significantly due to the absence of floods in the Krishna and Godavari rivers this year.
Groundwater levels have not recharged to the expected extent, leaving approximately 10 to 15 lakh borewells dry. As this is likely to impact both Kharif and Rabi crops, banks have been urged to devise a special action plan to support the farmers.
The Deputy CM requested that banks adopt a positive approach toward granting educational loans and ensure that the maximum number of eligible students receive financial support.
He said banks should take a proactive approach toward providing loans for individual home construction.
Source: IANS
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