After loan moratorium by cooperative societies, farmers now seek relief from commercial banks

Ruchika M Khanna

Chandigarh, April 17

Farmers having suffered losses because of crop damage due to unseasonal rain are relieved that they do not have to repay the loan taken from state cooperative societies immediately.

It gives farmers the additional cash in hand during this time of financial difficulty, especially in areas where crop loss is 100 per cent.

On March 27, Chief Minister Bhagwant Mann had announced the postponement of the recovery of crop loan taken by the farmers from the Primary Agriculture Credit Societies (PACS) in view of the crop failure due to unseasonal rain and thunderstorms. He had also waived the interest due to the farmers during the deferred period of loan recovery.

Enquiries made by The Tribune from the state Cooperative Department reveal that these societies had extended loan worth Rs 7,625 crore to 9.90 lakh farmers, who now stand to benefit. Of these farmer members, about 3.50 lakh were earlier declared defaulters in loan repayment, having an outstanding amount of Rs 2,600 crore and could not avail the benefit.

Kulwant Singh, secretary of The Kishangarh Fedasinghwala Khetibadi Cooperative Society in Mansa district, said a majority of members of the society had suffered loss with grains having shrivelled because of lodging of wheat in March end. “It will be a big relief for them as they will not have to repay the loan immediately. But we are not sure of the plan to compensate the PACS as they will have to pay a compounding rate of interest on loan taken, if they pay it later,” he said.

Kulwinder Singh of Nadampura near Bhawanigarh said the government should have even waived the entire interest on loan, especially where the crop loss is over 75 per cent.

Randeep Singh, a farmer from Lehragaga, said that extending the loan repayment was a good step by the government, as farmers would have been unable to repay their loan instalments. “But this relief is only for those having availed loans from cooperative societies. Those having availed crop loans from commercial banks have to repay their loans immediately or face being declared defaulters,” he said.

Data collected by The Tribune from the State Level Bankers Committee (SLBC) reveals that the total outstanding crop loan given to farmers in the state till December 31, 2022, was Rs 6,1197.28 crore.

Balwinder Singh of Khiala village in Mansa said the government should immediately take up the matter with the bankers committee for a moratorium in loan repayment. Officials in the SLBC said so far they had not received any request from the government for postponing the recovery of crop loans from farmers affected by vagaries of weather. “If any agenda is brought by the state government for the next SLBC meeting, scheduled in May, the banks can consider the request,” said an official.