Recovery of Rs 31,000 crore loan from 40 lakh farmers is historic, says Deputy CM Bhatti

HYDERABAD: Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu has declared the recovery of nearly Rs 31,000 crore from over 40 lakh farmer accounts a historic and unprecedented achievement.

Addressing a meeting with bankers at Praja Bhavan on Thursday, the Deputy CM discussed the crop loan waiver scheme modalities. He emphasised that the funds released under the crop loan waiver should be used exclusively for the farmers and not be diverted for other debts, urging bankers not to trouble the farmers.

Vikramarka outlined the government's plan: "We will release Rs 31,000 crore under the crop loan waiver by August. Today, we are disbursing Rs 6,000 crore to benefit over 11 lakh farmers at four o'clock in the evening."

He further detailed the phased disbursement strategy, explaining that funds will be released for the second time this month to cover outstanding loans of up to Rs 1.5 lakh. "After that, we will release loan waiver funds up to Rs 2 lakh," he added. He also instructed bankers to engage with farmers with loans exceeding Rs 2 lakh to recover the remaining amounts.

Describing the crop loan waiver as a historic decision, Vikramarka highlighted that the initiative involves depositing Rs 31,000 crore into 40 lakh bank accounts, a first in Indian banking history. He noted, "This monumental recovery is unprecedented in the corporate banking sector."

Reiterating the government's commitment, Vikramarka recalled the pre-election promise made by Revanth Reddy, then PCC President, and himself as CLP leader, which has now been fulfilled. He encouraged bankers to celebrate this achievement alongside the farmers and to promptly grant future loans to meet their needs, stressing the significant role of the lead bank.

"Our state government will introduce many programs in the future for the development of the agricultural sector," he stated. He emphasised that 16.5% of the state's Gross State Domestic Product (GSDP) comes from agriculture, which supports over 45% of the state's population. He urged bankers to ensure that the funds received under the crop loan waiver are deposited and that loans are granted to farmers immediately for future needs. "Don't be careless when it comes to giving loans," he cautioned, emphasising the role of the lead bank.

In his speech, Agriculture Minister Tummala Nageswara Rao highlighted the magnitude of the Rs 30,000 crore crop loan waiver executed in a month. "This is a proud moment in our country's history. Under former Prime Minister Manmohan Singh, the total expenditure on farmer loan waivers was Rs 70,000 crore. Our state has achieved Rs 30,000 crore," he noted.

Tummala praised the efforts of Chief Minister Revanth Reddy, Deputy CM Bhatti Vikramarka Mallu, and Special Secretary Ramakrishna Rao in realising the loan waiver. He urged banks to manage the disbursement process efficiently by announcing village-wise dates to prevent overcrowding at branches.

"The timely receipt of these funds will significantly enhance agricultural activities, especially with the onset of rains in the Krishna and Godavari districts," he added. He criticised the previous government's approach, which provided Rs 1 lakh waivers in four instalments, barely covering the interest.

He said that the state government's decisive action on the crop loan waiver was expected to bolster the banking system and stimulate the agricultural sector, benefiting a substantial portion of the state's population.