Andhra, Telangana struggle with farm loan waiver

As a result, some loan accounts received the money while others did not. Due to this, the farmers whose loan accounts did not receive the money would not get benefit of crop insurance for the rabi season starting October 1, nor can they apply for fresh loans. The AP government requires more than Rs 40,000 crore to pay banks while Telangana needs Rs 17,000 crore.

Telangana Agriculture Commissioner B Janardhana Reddy said that the government has set the ball rolling on farm loan waiver.

“On September 30, 90 per cent of the farmers’ loan accounts were credited. Banks may take some time to process and hence some may not have received it in their accounts. Rs 4,250 crore was released by the government. There are close to 35 lakh beneficiaries for farm loan waiver in Telangana. In the first phase, we deposited 25 per cent of the total loan they have taken. For those who were unable to renew crop insurance, we will work out something,’’ Reddy said.

The AP government has floated another scheme to take care of the loan waiver scheme. After promising to deposit the first installment on September 30, the government said it would be able to do so only on October 15.

Like their Telangana counterparts, AP farmers also won’t get fresh loans. The government set up a Resources Management Committee to get funds to fulfil the loan waiver scheme.

TDP Rajya Sabha MP Y Sujana Chowdary, who heads the committee, said the government was setting a Farmers’ Empowerment Corporation which will issue bonds to farmers to waive crop loans.

Bad crop and debt drive two Telangana farmers to end life

Two farmers, who were heavily in debt, allegedly committed suicide in Karimnagar district of Telangana over the weekend. While one consumed pesticide, the other hung himself.

Inadequate rainfall, which led to crop failure, reportedly forced M Tirupati and D Ramesh of Kodimial village to end their lives. With 30 per cent rainfall deficit and groundwater levels dangerously low, the borewells in the state have been rendered useless.

Investigation Officer K Ravi said while Tirupati, a cotton farmer, appears to have committed suicide by consuming pesticide after his crop failed and he ran into heavy debt, police are yet to verify whether D Ramesh’s suicide is also linked to crop failure.

Telangana Agriculture Minister P Srinivas Reddy, however, assured that farm loan waiver would ease the debt burden of most farmers. So far, 187 farmers have committed suicide in the state .