Farmers associations rake up problems in availing crop loans

Farmers associations in delta districts have raised their voice against the modalities followed by cooperative banks for sanctioning crop loans.

In a statement issued on June 23, general secretary of Tamizhaga Cauvery Vivasayigal Sangam P. R. Pandian has opposed the rules and regulations followed by cooperative banks for issuance of crop loans.

“It will not be acceptable to follow certain rules laid down by the Primary Agriculture Cooperative Banks, which levy more stringent rules than the those followed by nationalised banks for sanctioning crop loans. There was a vast difference between the announcement made by the Cooperatives Minister and the modalities followed by the Cooperative Banks in granting of crop loans to farmers”, he said.

Demanding a white paper on the issue, Mr. Pandian said that conversion of Primary Agriculture Cooperative Societies as PACBs was the main reason for the problems faced by the farmers. The State government should come up with a solution for the issue as early as possible and ensure that farmers avail crop loans through the PACBs without much difficulties.

Expressing similar views, secretary of Tamil Nadu Cauvery Farmers Protection Association Sundara Vimalanathan has urged the Tamil Nadu government not to implement Reserve Bank of India’s recent dictum that crop loans should be disbursed based on Credit Information Bureau (India) Limited’s Score (CIBIL score).

In a statement, he called upon the Members of Parliament elected from Tamil Nadu to register their protest against the RBI rules and persist on the Union Government to withdraw this rule during the forthcoming Monsoon Session of the Parliament.