Hans News Service Amaravati

TheAndhra Pradesh Tenant Farmers’ Association has demanded that tenant farmers, Rythu Mitra Groups (RMGs) and Joint Liability Groups (JLGs) with a good loan repayment record be provided unsecured crop loans of up to Rs 2 lakh through Kisan Credit Cards. Association state committee secretary M Haribabu and Farmers’ Association state president V Krishnaiah submitted a representation to agriculture department principal secretary B Rajasekhar, urging the government to intervene and ensure easier access to institutional credit for tenant farmers.

The association leaders said members of RMG and JLG groups were not receiving crop loans according to the prescribed scale of finance. They pointed out that despite Reserve Bank of India guidelines permitting unsecured agricultural loans up to Rs 2 lakh, the facility was allegedly not being implemented effectively in Andhra Pradesh.

According to the association, earlier guidelines allowed unsecured crop loans up to Rs 1 lakh. However, with the rising cost of cultivation, the scale of finance for various crops has increased. The association said the limit for agricultural loans without collateral requirements has also been enhanced from Rs 1.6 lakh to Rs 2 lakh.

The leaders argued that the benefits should be extended to all eligible tenant farmers. They expressed concern that even farmers and group members who regularly repay their bank loans were facing difficulties in obtaining crop loans exceeding Rs 1 lakh.

Haribabu and Krishnaiah urged the agriculture department to hold discussions with State-Level Bankers’ Committee (SLBC) officials and ensure that eligible RMG and JLG members receive unsecured crop loans of up to Rs 2 lakh.

They further requested that farmers requiring higher credit limits should be provided crop loans of up to Rs 5 lakh, subject to the submission of necessary sureties or guarantees.

Responding to the representation, agriculture special chief secretary Rajasekhar reportedly assured the association leaders that he would take up the matter with SLBC and bank officials and make efforts to facilitate the sanction of crop loans to eligible tenant farmers and group members.