Amid debt waiver clamour across India, 71% Chhattisgarh farmers repay loans

Raman Singh had announced Rs 3,200 cr as an interest-free loan for farmers in 2017

Unlike other states across the country where farmers are reeling with farm loan problems, about 71 per cent farmers in Chhattisgarh have repaid the loan.

Due to crop failures and other issues, farmers in many states are reluctant to repay the farm loan mounting pressure on the respective state governments to waive it off. In Chhattisgarh, the situation is completely different and the repayment of loan had been considerably satisfying.

According to state’s agriculture and cooperative department officials, loans to the tune of Rs 4,474.15 crore were disbursed to the farmers. The state government had been providing interest-free loans for the kharif crops. Over one million farmers across the state have been availing themselves of the benefit of the scheme.

“During the period from July 1, 2016 to May 31, 2017, farmers had repaid Rs 3,168.16 crore,” the officials said. The repayment is 70.81 per cent of the loan disbursed, they added. The repayment ratio is, in fact, more as compared to the previous year.

During the corresponding period in 2015-16, the repayment was 68.73 per cent. As against the disbursement of loan of Rs 3,791.34 crore, farmers repaid Rs 2,605.57 crore.

Chief Minister Raman Singh had announced Rs 3,200 crore as an interest-free loan for the farmers for kharif 2017. Size of the fund would be interest according to the demands coming from the farmers. The loans are disbursed through the primary cooperative societies.

Farmers in Chhattisgarh had been avoiding cash crop that had provided cover to them against any failure. Paddy had been a major kharif crop in the state.

Chhattisgarh also known as the rice bowl of the country, has set a target to produce 8.2 million tonnes (mt) of paddy in the kharif  2017. The state had produced 8.04 mt of rice and was among the top three rice-contributing states last year.