HYDERABAD: Farmers in Telangana — receiving their farm loan dues from the state government in their bank accounts — are caught in the quagmire of having to clear interest on their loans accumulated since 2018, when the loan waiver was promised.
Many who need to renew their loans are currently left wondering about their financial viability.
Gunti Mallesh, a farmer from Turkapalli village in Yadadri Bhongir district, said he had to repay the bank Rs 54,000. “I received a message that the amount has been deposited in my bank account. But around Rs 25,000 was added as interest to the loan over the past five years, and unless I pay this interest amount, I cannot renew my loan. My passbook is with the bank,” he told Deccan Chronicle.
Owning four acres of farmland, 33-year-old Mallesh said he typically grows jowar and cotton. “I have been somewhat lucky since I also have some milch cattle. I make a living selling milk and use the earnings to plant crops. But I am growing crops only on two acres now as each acre needs an investment of around Rs 45,000,” he said.
The case of Doorla Ganganna, from Karanji village in Jainath mandal of Adilabad district, is worse. “I have a loan of Rs 82,900 and own two acres on which I grow cotton. New loans are not being given and I have no idea how much more I have to pay towards accumulated interest. I have taken Rs 50,000 from a ‘dalari’ (middleman) and am not in a position to pay any dues to the bank.”
N. Praveen, who grows soya bean and cotton on his three acres in Dhannur of Boath mandal in Adilabad, said he managed to pay the interest on his agriculture loan of Rs 89,000 but complained that the 7 per cent interest charged by banks, if loans are repaid in time, is not getting deposited. “Of the interest amount, 3 per cent is to be paid by the state and 4 per cent by the Centre, but since the state has not been paying its share, the Central share is not coming. This is the case with every farmer who took farm loans in the state,” he said.
“I have paid some Rs 50,000 in interest since 2018 after waiting for the government to clear the farm loan. Even Rythu Bandhu funds have come so late. The government said it gives Rythu Bandhu to help us start our operations but to do that, the money should come in May. What is the use of it coming now?” he asked.
According to Sangepu Borranna, who works for Rythu Swarajya Vedika, an NGO that helps farmers negotiate with banks, not all banks are allowing farmers access to the Rythu Bandhu funds. “I know of several instances in combined Adilabad where the banks have held on to the Rythu Bandhu deposits saying the farmers must clear their loans first. The thing is any pending interest gets added to the principal each year and the farmers do not know just how much interest burden their accounts have accumulated,” Borranna said.
