Chennai: Tamil Nadu Government has pleaded with nationalised banks that operate in the state to stop taking “coercive action” against farmers who have failed in paying back their farm loans.
The state administration feels since farmers have been facing the worst-ever drought in Tamil Nadu, the banks should grant some more time for the farmers to resume their agricultural activities.
The message was conveyed at a special state level bankers committee meeting recently. The request was made after farmers’ requested Tamil Nadu government’s intervention.
The farmers complained that banks have asked them quick repayment of loans that forced them to go distress sale of their produce. Sources said the government felt support from the banks would help farmers to start preparatory cultivation activities.
“The banks, hopefully, will consider the request by the state government,” a source said. A. Shanmugam, a farmer from Vellore district, said that he had borrowed Rs 17.62 lakh as a loan from the State Bank of India, Kaveripakkam branch to buy harvest equipment. He has repaid Rs 14.42 lakh and due to severe drought, he is unable to repay the remaining amount.
“The only option left for me is to sell my vehicle to repay the loan amount,” he said. In another instance, Nilakkotai Branch of the State Bank of India has written to its customer Keshavamurthy warning him that gold that he has pledged would be auctioned if he fails to repay the Rs 2.27 lakh that he has availed from the bank.
Farmers’ say if banks stop “coercive action”, it would help them in preparing for the harvest and pay their loans back after they sell their produce. The government of Tamil Nadu had already declared all the 32 districts in the state as drought-hit as on January 10, 2017. The RBI guidelines ensured relief measures to the farmers be provided in three months by 10 April 2017, which will now be extended till July 10, 2017.
