Waiver to pose challenges for government

Mumbai: The state government is facing the challenge of meeting the enhanced target of disbursing Rs 62,663 crore for the farm loan waiver for 2018-19 compared to last year. In 2017-18, government achieved only 47 per cent of its target, disbursing Rs 54,221 crore. Chief minister Devendra Fadnavis has asked bankers and government officers to focus on farmers who have got the benefit of loan waiver and said they should get the new crop loan.

Mr Fadnavis held a meeting with agriculture, cooperative and revenue department officers, collectors, chief officers of zilla parishads and bank officers ahead of the Kharif season on Saturday at Rangsharda Hall, Bandra.

Crop loan disbursement is a crucial aspect of the waiver and it witnessed a significant downswing last year. Out of 1.36 crore farmers across the state, 80-90 lakh are connected with the banking system. If they don't pay crop loans in the stipulated period of one year, they become defaulters and are ineligible for new crop loan waiver.

In 2016-17, banks disbursed Rs 42,172 crore to 58 lakh farmers out of which only 40 per cent repaid the loan last year, expecting a waiver for those loans also. So more than 30 lakh farmers became defaulters last year. The government has given a loan waiver and incentive benefit to 37.50 lakh farmers and deposited Rs 14,900 for loans taken up to June 30 2016 - as per the loan waiver criteria - in the bank accounts out of which more than 22 lakh farmers were defaulters. Now they are eligible for new loan. But 30 lakh new defaulters were added last year, who are ineligible for the new loan.

The state has enhanced the credit plan by Rs 8,400 crore in comparison with last year. But if more farmers are ineligible for the new loan, only 50-60 lakh farmers can avail new loans, as every year and enhanced credit target may not be achieved, said sources.