HYDERABAD: With different parts of the State receiving rain and sowing picking up, bankers have agreed to disburse crops loans at an average of Rs.1,000 crore a day till the month-end to achieve 100 per cent target of Rs.14,100 crore for kharif 2009.

About 50 per cent of crop loans to the tune of Rs.7,019 crore were disbursed up to August 15 and the banks have agreed to disburse a similar amount in the next seven days.

The assurance given by bankers at a Special State Level Bankers’ Committee meeting on Monday assumes significance against the backdrop of Chief Minister Y.S. Rajasekhara Reddy consistently refusing to concede the demand of the Opposition parties to declare the State drought-affected on the ground that it would affect the credit flow to farmers.

Responding to Dr. Reddy’s request to ensure 100 per cent by month-end, R. S. Reddy, CMD Andhra Bank and President SLBC, said bankers shared his concern and expressed confidence that the target could be achieved. He said that the disbursal would be monitored on a daily basis with various bank heads.

Earlier addressing the meeting, the Chief Minister said fortunately there has been good rain for the past 10 days and cautioned that any shortcoming in coming to the aid of the farmer would pose a threat to his very survival.

During a review he had with officials on August 2, it was found that crops loans only to an extent of 16 per cent of the kharif target were disbursed. With sowing and lending going hand-in-hand, the credit flow reflected bad rainfall situation then. He said officials had told him that lending would have come down substantially had the Government declared drought.

Plea to banks

Lauding the SLBC for rendering an extremely good performance in loan disbursement for the past five years, he asked the bankers to step up loans under Indira Kranthi Pathakam for allied activities like sheep/ goat rearing, poultry, dairy and fisheries. He said that only Rs.1,200 crore of the targeted Rs.10,200 crore under IKP was disbursed and wanted the remaining amount to be lent during September and October.

Assuring that Government would help in recovery of the loans, he urged the bankers to meet the total target of Rs.32,500 crore for agriculture sector for 2009-10, including Rs.9,000 crore for Rabi.

He also wanted them to increase the lending for tenant and new farmers. Dr.Reddy said that the State would take up with the Centre the need for extending the crop insurance up to September 15 for crops like groundnut.

SLBC Chairman R.S. Reddy has asked various bankers to sensitise all the branch managers to review the situation in their service areas.

(courtesy:www.Thehindu.com, Date:25-08-09)