Patan Afzal Babu Hyderabad

AmidEl Niño weather conditions, the State government has appealed to banks to provide adequate agricultural credit during the ensuing Rabi season. At the State Level Bankers’ Committee (SLBC) meeting on Tuesday, Deputy Chief Minister Bhatti Vikramarka called upon bankers to take the initiative to ease the financial burden on farmers caused by El Niño conditions.

The Deputy Chief Minister said the farming community had been hit the hardest by the prevailing situation. He urged banks to focus on restructuring loans and explore the possibility of adjusting interest rates to provide relief to farmers.

“A failed monsoon must not become a failed relationship between a farmer and his bank,” Bhatti said, adding that the all-time peak power demand of 20,018 MW recorded on October 16 reflected farmers' determination to save their crops.

Stating that El Niño had brought climate risks directly into the lives and livelihoods of farmers, he said the prevailing situation called for the SLBC and all participants at the meeting to pledge their support to people during these challenging times. He stressed that the government would not allow people to suffer.

To ensure employment opportunities amid the distress in the agriculture sector, the Deputy Chief Minister said the Telangana government had set a target of Rs 15,000 crore under the VB G RAM G scheme, with the State contributing 40 per cent of the funds.

He urged banks to examine eligible loan accounts for restructuring and rescheduling under applicable RBI guidelines and proactively explain the available relief measures to beneficiaries.

“A farmer should not have to become an expert in banking circulars to receive the benefit of one,” Vikramarka said.

Calling upon district-level officials to coordinate with banks and organise outreach programmes in affected mandals, he said decisions taken ahead of the Rabi season would determine whether affected farmers could resume sowing with confidence.

“The agriculture calendar does not wait for the financial calendar. And rescheduling previous loans is just part of the answer. Eligible farmers also need timely, need-based fresh credit,” the Deputy Chief Minister said.

He also urged banks to support the Rajiv Yuva Vikasam scheme, scheduled to be launched on November 19, which aims to benefit unemployed youth in the State.

Expressing concern over the possibility of liquidity shortages in rural areas due to drought conditions, Bhatti said banks could address the issue by increasing lending to women's Self-Help Groups (SHGs).

“If banks can add Rs 2 lakh for each SHG, this can result in the circulation of money in villages and spur the rural economy,” he said.