No relief for farmers with short-term loan

Small farmers who have taken short-term loans from the UP Cooperative Bank or District Cooperative Banks will not be covered under the Samajwadi Party government’s loan waiver scheme.

Written by Sanjay Singh | Lucknow | Published: July 17, 2012 4:43:03 am

Small farmers who have taken short-term loans from the UP Cooperative Bank or District Cooperative Banks will not be covered under the Samajwadi Party government’s loan waiver scheme.

Although complete guidelines for the loan waiver scheme are still to be released,the state government has communicated to the cooperative department that the scheme will cover only long-term loans taken by farmers.

Following the government’s decision,which will benefit only those farmers who have taken loan by pledging their land,the cooperative department has undertaken a special exercise to ensure maximum recovery of short-term loans taken by the farmers.

“We communicate to farmers that the loan waiver scheme will not cover short-term loans which they had taken from cooperative societies. We prompt farmers to deposit their crop loans at the earliest possible,” a source in the cooperative department said.

Additional registrar (banking) Ashok Mathur confirmed that the state government has communicated to the authorities concerned about its plan to help only those farmers who have taken long-term loans from cooperative village development banks.

“UPCB (UP Cooperative Bank) and DCB (District Cooperative Banks) are not covered under the loan waiver scheme. The guidelines in this regard will be issued soon,” Mathur told The Indian Express on Monday.

After the formation of the SP government,small farmers,who had taken crop loans from cooperative bodies at the village level,had hoped they would be benefit from the new loan waiver scheme. It resulted in the decrease in recovery rate of such loans by the cooperative bodies.

“The situation has now improved. Our recovery rate of short-term loans is now around 56 per cent. At the same time last year,it was around 61 per cent,” another source in the cooperative department said.

However,the SP’s manifesto had mentioned waiving loans of those farmers who had pledged their land with the banks.

Cooperative bodies start distributing Rabi loan from October 1 every year. Rabi loans are available for farmers till March 31. Then the cooperative bodies start the process for recovery of loans from the farmers. Kharif loans are distributed among farmers between April 1 and September 30 every year.

On Saturday,Principal Secretary (Cooperative Department) Debasish Panda held a meeting with senior officials of his department,including assistant registrars,to review the progress in the recovery of crop loans at the ground level.

“Moradabad,Saharanpur and Meerut divisions have performed well in recovery of short-term loans. However,the recovery graph in three divisions — Devipatan,Gorakhpur and Allahabad — is below 15 per cent,” Panda replied to a question.

He refused to link low recovery of crop loans with the delay in final shape of the loan waiver scheme.

For all the latest Lucknow News, download Indian Express App