During the Assembly elections, CM Revanth Reddy made lofty promises that his government would implement a Rs. 2 lakh loan waiver in one go on December 9. Although the Congress government initiated the process of the loan waiver, Revanth’s actions do not match his words, as many farmers have been left out of the scheme.
A large number of farmers across the state have voiced their distress over the Congress government’s failure to fulfill its promise of crop loan waiver. Despite assurances, many farmers are yet to receive the relief they were counting on. The government, which initially announced a waiver of loans up to Rs. 2 lakhs, has limited the number of beneficiaries, leading to widespread dissatisfaction.
Farmers are now scrambling between banks and officials, seeking answers as to why they have been excluded from the waiver despite meeting all eligibility criteria. Many are frustrated by what they perceive as arbitrary restrictions imposed by the government to ease its financial burden.
For instance, data from the State Level Bankers’ Committee (SLBC) reveals that while banks disbursed Rs. 64,940 crore in crop loans to farmers during the financial year 2023-24, only Rs. 17,933 crore have been waived in three phases, covering just 22.37 lakh farmers. This has left many questioning the transparency of the process.
According to SLBC, as of March 31, 2024, the total crop loans stood at Rs. 64,940 crore, with Rs. 49,500 crore disbursed by December. Although the Congress government initially estimated that it would need Rs. 40,000 crore to fulfill its loan waiver promise, the amount was reduced to Rs. 31,000 crore in a cabinet meeting, and further cut to Rs. 26,000 crore in budget allocations. Ultimately, only Rs. 17,933 crore was released in three installments.
The SLBC data indicates a steady increase in crop loans over the years, rising from Rs. 17,019 crore in 2014-15 to Rs. 64,940 crore by 2023-24. However, under the previous government, Rs. 19,198 crore was spent between 2014-18 to waive off loans for 36.68 lakh farmers. In contrast, the current Congress government has limited the waiver amount to Rs. 17,933 crore for 22.37 lakh farmers, raising concerns about the reduced coverage and the actual criteria used for the waiver.
Farmers from various districts have filed thousands of complaints with the agriculture department, highlighting discrepancies in the waiver process. For example, in Nalgonda district alone, more than 4,000 complaints have been lodged, while in Kamareddy district, 2,898 farmers have reported issues. Many farmers whose names differ between their Aadhaar and bank accounts have been excluded from the waiver, leading to further confusion and frustration.
Agricultural expert Donthi Narsimha Reddy has criticized the process, claiming that the government and banks are not being transparent about the actual figures and beneficiaries of the loan waiver. He pointed out that the number of farmer bank accounts has increased since the last farming season, yet the number of beneficiaries has decreased, suggesting a deliberate attempt to reduce the financial burden on the government.
As the discontent grows, farmers are demanding greater transparency and fairness in the loan waiver process, urging the government to honor its original commitment and ensure that all eligible farmers receive the relief they were promised.