Banks give farm loans slowly, CM tells Goyal

Mumbai: Maharashtra chief minister Devendra Fadnavis has written a letter to Union finance minister Piyush Goyal over the failure of a few private and public-sector banks to provide crop loans to the state’s farmers. Mr Fadnavis demanded that Mr Goyal give instructions to the banks concerned to expedite the loan-clearing process.

Banks in Maharashtra have so far achieved only 15 per cent of their crop loan target for the 2018 kharif season. Mr Fadnavis’ letter came in the wake of a shocking incident in Buldhana recently wherein a bank official allegedly demanded sexual favours from a farmer’s wife in return for clearing a crop loan. The incident sparked outrage among the state’s farmers while Opposition parties slammed the state government for having no control over bureaucracy.

In the letter, Mr Fadnavis wrote, “All guardian ministers have been instructed to keep a watch on the process of distribution of crop loans.”

Maharashtra chief minister Devendra Fadnavis has written a letter to Union finance minister Piyush Goyal over the failure of a few private and public-sector banks to provide crop loans to the state’s farmers.

Mr Fadnavis wrote: “The response from nationalised and private banks is not as expected. Banks are distributing loans at a slow pace despite the arrival of rains.” Mr Fadnavis further wrote that his government has taken serious cognisance of this, and the Union government needs to intervene in the matter.

“The state government has implemented the historic loan waiver scheme, due to which a large number of farmers has become eligible for fresh loans. Since the sowing season has started, farmers are in need of crop loans. Thus, banks should be directed to disburse most of the loans by June end,” wrote Mr Fadnavis.

Banks in Maharashtra were given a target of Rs 43,342 crore for loan disbursement in the kharif season. But, only Rs 6,333 crore was disbursed in April and May 2018. This amounts to only 15 per cent of the target. Region-wise data of loan disbursement shows that Marathwada, a region wracked by farmers’ suicides, has achieved only 7 per cent of its loan disbursement target whereas Konkan, Vidarbha and western Maharashtra achieved 9 per cent, 11 per cent and 13 per cent respectively.