The Hindu : Andhra Pradesh / Anantapur News : Bankers urged to extend more credit to farmers

Online edition of India's National Newspaper
Monday, Aug 30, 2004

Andhra Pradesh

Andhra Pradesh - Anantapur

Bankers urged to extend more credit to farmers

By Our Staff Reporter

ANANTAPUR, AUG. 29. An all-party meet held to discuss the issue of crop loans has urged the bankers to extend another Rs. 100 crores credit to farmers and also extend the deadline for issuance of loans till September 30. The bankers were also urged to give priority to rescheduling of loans till August 31.

A resolution was adopted to this effect at the meeting held on Saturday night. It was chaired by the District Collector, Y.V. Anuradha, and was attended by A. Venkatarami Reddy (MP) of Congress, P. Keshav and V. Hanumantharaya Chowdary of TDP, M.V. Ramana and K. Ramakrishna of CPI, G. Obulakonda Reddy of CPI(M) and V. Pundareekaksha Reddy of BJP. Besides, the AGM of NABARD, Prabhakar, and the lead bank manager, Laxminarayana, were present.

Review meeting

The Collector urged bankers to extend farm credit by another Rs. 100 crores this season keeping in view the problems faced by farmers. She stated that a review meeting would be conducted with all the bankers in the district after August 31 to find out bank-wise crop loans given this season against the targets. The Collector noted that bankers had concentrated mainly on renewal of loans this season.

She also urged political parties to pacify agitated farmers, as pressure on the bankers was building up with the August 31 deadline nearing. Against the SLBC direction to give 20,000 new crop loans the bankers had already given about 58,000 new loans, she said.

Negligence alleged

Meanwhile, representatives of political parties alleged that bankers were negligent on the rescheduling of loans. Answering a query of Mr. Ramakrishna the NABARD and lead bank officers said against Rs. 360 crores crop loans given to 2.20-lakh farmers last year, they had already given Rs. 419 crores to 2.7-lakh farmers.

The bankers said loans of 14,000 farmers were rescheduled so far. This angered the representatives, who sought to know how far it was justified to reschedule only 14,000 crop loans against 2.2 lakhs target.

Flouting orders

Overlooking the RBI and NABARD orders issued on June 24 the banks in the district had forced farmers to repay dues, threatened of not claiming insurance, on non-repayment of dues, and renewed the loans, the parties' representatives charged. They demanded implementation all directions of RBI for providing debt relief to the distress-ridden farmers of the district.

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