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  Metros   Mumbai  29 Jan 2018  Crop loans down, but production remains high

Crop loans down, but production remains high

THE ASIAN AGE. | UMAKANT DESHPANDE
Published : Jan 29, 2018, 1:30 am IST
Updated : Jan 29, 2018, 1:30 am IST

There are a total of 1.36 crore farmers in the state, of which only 50-55 lakh are eligible for loans.

The recovery was rate was only 40 per cent, so 30 lakh defaulter farmers now have loan arrears and have become ineligible for a loan in 2018.
 The recovery was rate was only 40 per cent, so 30 lakh defaulter farmers now have loan arrears and have become ineligible for a loan in 2018.

Mumbai: Despite the large dip in crop loan disbursement to farmers, which touched only 39% of its target in 2017, there has been no impact on agricultural production. In 2016, the loan disbursement achieved 72 per cent of its target. Even though farmers have not received loans from banks, they are producing good crops. As per figures given by the agriculture department, sowing for kharif and rabi was more than 90-97 per cent in 2017-18.

There are a total of 1.36 crore farmers in the state, of which only 50-55 lakh are eligible for loans. Out of these, 35-40 lakh farmers have availed the loan. But last year, loan waiver scheme declared that almost 60 per cent of the farmers have not repaid their 2016 crop loan. The recovery was rate was only 40 per cent, so 30 lakh defaulter farmers now have loan arrears and have become ineligible for a loan in 2018.

 

Banks were over burdened and they have not concentrated on disbursement target resulting in achieving only 39 per cent of the 2017 target, as per figures of SLBC given by cooperative department. But minister Subhash Deshmukh said that they had not received any complaint from farmers about banks denying loans. However, sources said that many farmers opted for loans from private lenders. According to officials of the agricultural department, it is a bumper crop this year.    

Tags: crop loan, subhash deshmukh