Money Management

Stage set for phase II harvest loan exemption in Telangana


Hyderabad: Farmers in Telangana State have much to celebrate these days. After announcing that all of the paddy products would be picked up literally at their doorstep, the state government has now started the process of implementing the second tranche of the crop loan exemption as promised by the minister in Chief K Chandrashekhar Rao.

The state government has allocated a budget allocation of Rs 5,225 crore for 2021-22 to the program, and officials have now started to work out the modalities to ensure that the maximum number of farmers benefit from the program.

Two options

Sources told Telangana Today officials have developed two models for implementing the program to ensure that it benefits as many farmers as possible.

Officials have offered to forgo crop loans between Rs 25,000 and Rs 50,000, given that the government had already authorized loans of up to Rs 25,000 over the past year. This will mean incurring an expense of Rs 4,900 crore which would benefit approximately 8.02 lakh eligible farmers. The authorities are also considering another option of waiving an amount of Rs 25,000 on crop loans up to Rs 1 lakh, excluding farmers whose loans up to Rs 25,000 have already been canceled. This model will benefit about 13.45 lakhs of farmers for an expenditure of 5,100 crore rupees to the public treasury.

Official sources have said that the government is keen to implement the second model that will benefit farmers as much as possible. Officials have already prepared separate lists of farmers who will benefit from both models and made arrangements to deposit the amount directly into farmers’ bank accounts. In addition to paying crop loan contributions, the government also pays interest on crop loans until they are fully paid and thus ensures that farmers are not charged with interest.

“We are awaiting the green light from the Chief Minister. In accordance with his decision, we will issue the orders to release funds directly to farmers’ bank accounts, ”a senior official told Telangana Today.

It should be recalled that in the run-up to the 2018 Assembly elections, the Chief Minister announced his intention to forgo crop loans up to Rs 1 lakh taken by approximately 36.8 lakh farmers in the state. . This was also mentioned in the TRS party manifesto and despite promises from opposition parties to raise the upper limit to Rs 2 lakh, people voted TRS in power. It should be recalled that Telangana was the only state in the country to successfully implement the crop loan exemption program in 2014-2018, granting the percentage of crop loans granted to farmers.

Keeping his promise, the chief minister waived crop loans of around 2.96 lakhs from farmers who had loans of up to 25,000 rupees. The state government has spent Rs 408 crore towards this past year.

Now you can get handpicked stories from Telangana today to Telegram everyday. Click on the link to subscribe.

Click to follow Telangana today Facebook page and Twitter .


Leave a Reply

Your email address will not be published.