While the government on Wednesday announced deferment of loan recovery, farmers associations have complained that banks and cooperative societies are already collecting farm loans and interest on them, despite the lockdown.
Banks that have advanced farm loans and primary agriculture cooperative societies in the villages are issuing notices to farmers asking them to repay loans before May 29. Or else, they will be charged an annual interest at the rate of 12.5%. Farm loans are issued at zero per cent interest rate. If they are repaid before the scheduled period, farmers are expected to repay only the principal amount.
Farmers say they are unable to repay loans in the background of rising fertilizer prices, and an unstable market for farm produce due to the lockdown. “Since 2019, we have not got remunerative prices for any of the crops, including cash crops such as sugarcane, oil seeds and tobacco, due to the lockdown. Before 2019, we were badly hit by the floods. We have no means to repay the loans, at least of now. Not even the large farmers will be able to repay the loans if the government demands them,” said Jayashree Gurannanavar, Karnataka Rajya Raitha Sangha leader.
“This is the plight of farmers across the State,” Sidagouda Modagi, Krishik Samaj leader, said. He warns that if the State government does not settle the issue this month, farmers will suffer as they will not be able to get fresh loans for the Kharif season.
The figures of loans in the district are astonishingly high. According to the district lead bank, 6.71 lakh farmers have taken loans of over ₹6,200 crore in Belagavi district. If the government charges 12.5 per cent interest on it, farmers will have to cough up ₹750 crore.
Another issue bothering farmers is the limit of one beneficiary from one family under the interest waiver scheme on old farm loans. “I have three brothers who have lands in different survey numbers. But we live as a joint family with one ration card. The State government has mandated that only one survey number can be tagged with one ration card,” said Vinay Patil, a farmer from Ramdurg.
Cooperative Department officers said they are yet to get any letter from the State government on deferment of loan repayment.
