Even as the demand to waive off farm loans is gaining ground among masses, banking records reveal that over 50% of the farmers, even though targeted as beneficiaries in the beginning of every financial year, do not get loans. Reports by the State Level Bankers Committee (SLBC) have revealed that even though budgetary allocation remained significantly high at 93.84% (2017-18), 80.52% (2016-17) and 82.05 (2015-16) over the past three years, the actual coverage of farmers was at 45.71% (2017-18), 43.94% (2016-17) and 42.66% (2015-16) year-on-year.
Sources in the banking and farming sectors say that half of the farmers deprived of financial inclusion is a matter of concern. It also exposes many of them to the risk of private moneylenders with no record of debt, which makes it impossible to know the exact quantum of farmers’ debt.
“We need to find the reasons, why these farmers are left out. May be marginal farmers or those in remote or tribal areas are afraid of approaching banks, but the new generation is very bold,” said a senior official in a leading Public Sector Bank (PSB). He feared that relatively well-off farmers are enjoying most of the benefits while small and marginal farmers are getting deprived.
Sagar Rabari, secretary of Gujarat Khedut Samaj, said farmers deprived of bank loans have no choice but to borrow money from private moneylenders. “Small and marginal farmers take loans for seeds, fertilizers and pesticides. Since these are not on record, there is no risk of confiscation of land. Moreover, such farmers have to rely on traders-cum-moneylenders to sell their crop, so even lenders are sure that the farmer will have to pay money, even though it may be delayed,” said Rabari. He estimates that such loans should be close to the crop loan given by banks.
According to a bank official, in spite of the fact that less than half of the farmers are covered under bank loans, there is no lower revision of intended beneficiaries. “Even if we have a target of 100 farmers and only 42 get loans, we have to revise it upwards. From 100 we can raise to 110, but if we reduce to 80, only 32 farmers will get loans,” said the official.
