The Hindu : Tamil Nadu / Chennai News : Samba: funds inadequate, say ryots

Online edition of India's National Newspaper
Wednesday, Sep 14, 2005

Tamil Nadu

Tamil Nadu - Chennai

Samba: funds inadequate, say ryots

S. Dorairaj

"Questions on disbursal remain unanswered"

CHENNAI: Farmers' associations are sceptical about the flow of cooperative funds for samba cultivation in Thanjavur, Nagapattinam and Tiruvarur districts despite Chief Minister Jayalalithaa's announcement on September 9 that loans to the tune of Rs. 75 crores would be disbursed through the Central Cooperative Banks in Kumbakonam and Thanjavur. Official sources, however, are confident that the financial requirements of the agriculturists can be met.

Leaders of the Kisan Sabhas say that Ms. Jayalalithaa's announcement appears to have encouraged farmers to take up samba cultivation due to the good storage position in reservoirs.

But many questions on the disbursal of adequate funds for cultivation remain unanswered with only ten days left to start transplantation.

K. Balakrishnan, general secretary, Tamil Nadu Vivasayigal Sangam, says the funds announced by the Chief Minister are not adequate considering the proposed areas of cultivation — 12 lakh acres in Thanjavur, Nagapattinam and Tiruvarur districts. Farmers are not sure whether the primary cooperative agricultural banks will disburse the loans without any precondition as laid down in the circular sent by the Registrar of Cooperative Societies on May 2. Most farmers, who have suffered recurring crop losses, have not been able to repay previous arrears and produce no-objection certificates to obtain loans from the nationalised banks, he says.

S. Ranganathan, general secretary, Tamil Nadu Cauvery Delta Farmers' Welfare Association, is of the view that the farmers will get a breather if the State Government takes steps to release Rs. 16.47 crores to the National Agriculture Insurance Corporation for 2004-05 as announced by Ms. Jayalalithaa. Non-availability of bank loans will make farmers depend on the paddy merchants who will demand high interest and offer low prices.

Meagre amount

General secretary of the State unit of the All-India Kisan Sabha, V. Duraimanickam, says the cooperative loan amount is meagre. Another problem that may come in the way of disbursal of cooperative loan is that many PACBs in these districts are defunct.

But official sources say that Ms. Jayalalithaa made the announcement although the cooperative movement is undergoing a difficult phase. The Registrar of Cooperatives has only prioritised the categories of farmers to receive crop loan.

The DCCBs have started issuing crop loans. In the case of defunct PACBs, disbursal will be done through the ones in the adjacent areas.

Farmers could also avail of crop loans from nationalised banks, they point out. With the Government pumping in funds, most DCCBs, including ones in the delta districts, have been revived.

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