Despite the Congress government announcing the fourth tranche of loan waivers 10 days ago, farmers across Telangana are increasingly frustrated as they wait for the promised loan waiver. Although lists of eligible farmers have been distributed to banks and villages, the funds have yet to be deposited into the accounts of most beneficiaries.
On November 30, during the ‘Rythu Panduga’ celebrations in Mahabubnagar, Chief Minister Revanth Reddy declared that loans worth Rs. 2,747.67 crore for 3.13 lakh farmers had been waived as part of the fourth tranche. The CM ceremoniously handed over loan waiver cheques to farmers during the event. However, it is being reported that these cheques have effectively become ‘void’ as the government has not released the funds to banks for disbursal.
Farmers are making repeated trips to banks and local officials, only to be informed that the funds have not been transferred. The government had initially pledged to waive loans of up to Rs. 2 lakh for all eligible farmers, a promise requiring Rs. 31,000 crore to benefit 42 lakh farmers. So far, Rs. 20,616 crore has been disbursed to 25.35 lakh farmers over four installments. This leaves Rs. 10,384 crore yet to be waived for 16.65 lakh farmers, with no clarity on when the remaining funds will be released.
Adding to the confusion, farmers with loans exceeding Rs. 2 lakh have received no updates on their waiver status.
Farm loan waiver statistics at a glance
- Total crop loans: Rs. 64,940 crore (According to State Level Bankers’ Committee, as of March 31, 2024)
- Crop loans taken up to December 2023: Rs. 49,500 cr
- Congress government’s early estimates for loan waiver: Rs. 40,000 cr
- Cabinet approval: Rs. 31,000 cr
- Amount waived so far: Rs. 20,616 crore
- Remaining amount: Rs. 10,384 crore
- Total eligible farmers: 42 lakh
- Farmers covered so far: 25.35 lakh
- Farmers still awaiting waivers: 16.65 lakh