Telangana Government issues guidelines for crop loan waiver scheme

HYDERABAD: The Government of Telangana has issued comprehensive guidelines for the implementation of the Crop Loan Waiver Scheme-2024.

Under this scheme, every farmer's family in Telangana who owns land is eligible for a loan waiver of up to Rs. 2 lakh. The scheme applies to short-term crop loans taken from scheduled commercial banks, regional rural banks, and district central cooperative banks in Telangana. It covers loans sanctioned or renewed on or after December 12, 2018, and outstanding as of December 9, 2023.

The eligibility criteria cover all farmer families in Telangana with loans up to Rs. 2 lakh. The Food Security Card (PDS) database will be used to determine the farmer's family, including the head of the household, spouse, and children. The Commissioner and Director of Agriculture (DOA) has been appointed as the implementing authority, with the National Informatics Centre (NIC) in Hyderabad serving as the IT partner. An IT portal will be managed jointly by the Director of Agriculture and NIC for data collection, validation, and determination of eligible amounts.

Each bank will appoint a nodal officer (BNO) to coordinate with the Director of Agriculture and NIC. Banks must submit digitally signed data from their Core Banking Solution (CBS) to the government. The associated bank branch will submit the data for Primary Agricultural Cooperative Societies (PACS). The eligible loan waiver amounts will be credited directly to the farmer loan accounts through the DBT method. For PACS, the waiver amount will be released to the DCCB or bank branch, which will then credit the amount to the farmer accounts in PACS.

The loan waiver does not apply to loans taken by SHGs, JLGs, RMGs, and LECs, restructured or rescheduled loans, and crop loans given to companies and firms. However, it applies to crop loans taken through PACS. Farmers found to have provided false information or fraudulently obtained loans must repay the waived amount. The government has the authority to audit beneficiaries' bank accounts as per RBI/NABARD guidelines.

The Director of Agriculture will establish a grievance redressal cell to address queries and issues faced by farmers. Farmers can report their problems through the IT portal or at help centres at the mandal level. Each request must be resolved within 50 days.

"The Government of Telangana is committed to making agriculture profitable and sustainable. Agriculture is a key foundation for Telangana's economic growth. The agriculture and allied sectors provide employment to 66% of Telangana's rural population and contribute 15.8% to the Gross State Domestic Product (GSDP) (as per DES data for 2023-24 AE). A developing agriculture sector is crucial for the growth of the rural economy. There are a large number of small and marginal farmers in Telangana," APC and Government Secretary M Raghunandan Rao said in an order.

Further, Raghunandan Rao said that considering the financial challenges farmers face in the state, the Government of Telangana has decided to implement the Crop Loan Waiver Scheme-2024 to ensure the stability of agricultural operations in the state.