Farmers in some areas of Rajasthan are in a pickle over repayment of interest-free loans by March-end as they harvest their crops in April, reports Hindustan Times.
The problem is confronting a large number of farmers in Kota, for example, who had taken kharif crop loans from cooperative banks last year. According to rules, if the short-term crop loans are not repaid by March 31, then a 7% interest is applied on them.
A Kota Central Cooperative Bank Limited (KCCBL) official says, “Crop loans worth Rs450 crore were given to around 60,000 farmers in the current financial year (2016-17) in Kota district; out of this, Rs325 crore was given to around 40,000 farmers as kharif crop loan through the Gram Sehkari Samiti.”
When asked about farmers’ difficulties in repaying kharif loans by March-end, KCCB functionary says, “Only the state government or Apex Bank can decide on crop loan deadline extension.” he clarified.