Though the coverage of paddy may not be high during the current year’s Samba cultivation season, this does not seem to have reduced the amount of crop loans disbursed by cooperative institutions.
As on October 30 this year, the area under cultivation in the Cauvery delta districts was about two lakh acres less and in the remaining parts of the State, around 1.4 lakh acres less than what was accomplished during the corresponding period last year. However, as regards crop loans disbursed by primary agricultural cooperative credit societies (PACCS), the amount of loans distributed, as on October 31, was about ₹800 crore higher than last year.
Meant for meeting cultivation expenses of farmers who have taken Kisan Credit Cards (KCC), the crop loans, carrying 7% interest, are sanctioned for different crops and extent of cultivation as per the scale of finance approved by the State Level Technical Committee. Without collateral security, the loans up to ₹1.6 lakh are provided and with collateral, over ₹1.6 lakh. They have a component of kind, which includes fertilizers, pesticides and seeds. In cases of prompt repayment of loans, the farmers concerned do not have to pay the interest, the burden of which is absorbed by the government.
On the reasons for the increase, an official in the Cooperation Department says that barring the core areas of the Cauvery delta, the rest of the State does not have any issue with respect to coverage. Another factor is the revision in the cost of cultivation as determined in the scale of finance.
A veteran banker, who has been studying cooperative institutions in the State, says the rise in the strength of loanees is another factor that paves the way for the enhanced quantum of loans. This year, nearly 30,000 farmers more have been given loans. However, K.V. Elankeeran, president of the Cauvery Delta Farmers’ Association, says that not all loanees are farmers.
He wants the authorities to ensure that the loans are disbursed only to those who are engaged in cultivation.
