Hyderabad: Farmers’ cash of over Rs 5,000 crore is stuck in public sector banks over the past month.
The government procured 53 lakh metric tonnes of paddy from over 11 lakh farmers since May, and paid Rs 8,000 crore which was credited online to the farmers’ bank accounts.
Banks have failed to disburse the money, citing a cash shortage.
With the Kharif agricultural activity going on in full swing, farmers are in dire need of cash to invest in crops. Even loans disbursed by banks have been stuck, and farmers are resorting to protests.
Alarmed, the government has requested RBI to supply Rs 2,000 crore cash to the districts. Finance minister Etala Rajendar has spoken to RBI officials and state level bankers’ committee to address the issue.
Of the Rs 8,000 crore paid for paddy, the farmers could draw Rs 3,000 crore with much difficulty. Banks could disburse Rs 4,600 crore crop loans so far against the target of Rs 23,851 crore.
