AP Chief Secy asks banks to help calamity-hit farmers

Stating that farmers in Andhra Pradesh suffered heavily due to a series of natural calamities in the last five years, Chief Secretary Prasanna Kumar Mohanty today asked banks to come to their rescue.
The statement comes at a time when bankers have complained about mounting dues and non-repayment of loans, because of loan waiver promised by various political parties.
However, state officials suggested that banks and the government should address the loan waiver issue since every party had promised it in their election manifestos.
At the State Level Bankers' Committee meeting here today, its president and Andhra Bank CMD C V R Rajendran pointed out that the total outstanding of agricultural advances stood at a staggering Rs 1,37,176 crore at the end of March 2014.

"In the 2013-14 fiscal alone, credit flow to agriculture sector was Rs 73,494 crore, as against the target of Rs 67,224 crore. This was possible because of proactive and farmer- friendly approach of banks," he said.
He lamented that banks faced serious constraints on the debt recovery front due to prolonged agitation over the statehood issue, occurrence of natural calamities and promises of debt waiver by political parties.

He wanted the government to put in place an effective recovery mechanism to tackle issues of chronic and willful default.
Chief Secretary Mohanty said farmers were in deep distress because of a series of natural calamities during the last five years.

"Be it due to cyclones, floods, unseasonal rains or drought, farmers in AP suffered heavily. Last year alone they were hit by two cyclones, four floods and hailstorms besides drought in 109 mandals. Banks need to come to the rescue of farmers," the Chief Secretary said.
The state government has already written to the RBI to reschedule short-term agricultural loans in view of the calamities "in the interest of farmers and food security of the state", Mohanty said.
Chief Commissioner of Land Administration I Y R Krishna Rao said bankers and government should address the loan waiver issue, since all parties promised it in their election manifestos.

Meanwhile, the State Bank of Hyderabad was notified as the 'Convenor Bank' for the new state of Telangana.
Andhra Bank had been the Convenor Bank for a (united) AP since 1984.