HYDERABAD: The state government started crediting Rythu Bandhu funds for the kharif season to farmers’ accounts on Monday, but the banks adjusted the money against the pending farm loans which the government had not waived despite promising to do so in 2018 during the Assembly polls.
Sources said that banks are apprehensive about their dues, as there is no clarity on the loan wavier in case another political party takes the state’s reins.
Therefore, with Assembly elections around five months away, banks are ramping up measures to recover loan arrears. The government is expected to issue another tranche of Rythu Bandhu aid for the rabi season in November, before the polls, as was done in 2018. Banks may take over this instalment also, if the government does not clear the loan waiver issue.
On Day 1 of the funds release, the government transferred Rs 642.52 crore to 22.55 lakh farmers who own up to one acre. The land extent for aid release will be increased every day to cover all the farmers in a month. The majority of the farmers who own not more than 10 acres are expected to be covered in 20 days.
As per state government data, the state had 70 lakh farmers of whom 47,86,161 are marginal farmers (less than 2.47 acres each), 11,50,339 are small farmers (2.48-4.94 acres), 4,73,387 are semi-medium farmers (4.95-9.88 acres), 84,558 are medium farmers (9.89-24.75 acres) and 5,861 are large farmers holding over 24.76 acres each.
Sources said that after the BRS retained power in 2018, the agriculture department submitted to the Chief Minister that 40.66 lakh farmers had borrowed farm loans of at least Rs 1 lakh, amounting to Rs 25,936 crore for the promised waiver. It was later found that 3.98 lakh farmers had availed of multiple loans on family member’s names and these names were duly deleted.
The final report stated that 36.68 lakh farmers who took loans worth Rs 19,198 crore were eligible for crop loan waivers.
However, the state government has waived loans of only 5.66 lakh farmers, amounting to Rs 1,207 crore, even after nearly five years. Over 31 lakh farmers who availed of loans of Rs 37,000- Rs 1 lakh are still awaiting relief.
Previously, banks had retorted to adjusting Rythu Bandhu aid against loans in 2021, leading to sharp protests from farmers, forcing Chief Minister K. Chandrashekar Rao and finance minister T. Harish Rao to hold an emergency meeting with banks and warning them against doing so.
However, farmers said that the banks were citing the upcoming Assembly polls for stepping up recoveries.
