Odisha drought: CM asks banks to provide loans to farmers

Amid reports of farmers in Odisha committing suicide allegedly due to crop failure and debt burden, Chief Minister Naveen Patnaik today asked commercial banks in the state to lend crop loans during the coming Rabi season.
"As the state is reeling under drought, it is the responsibility of banks to provide adequate loans to farmers," Patnaik said after presiding over a meeting of bankers at the state secretariat here.
He also directed all commercial banks not to collect kharif crop loans from farmers till March 2016.
"Banks which help farmers at the time of need, will get all support from the state government," Patnaik told bank representatives.

139 of the state's 314 blocks spread over 21 districts have reported crop loss due to drought condition. 41 of the total 139 blocks hit by the drought sustained 66 per cent crop loss as per the eye estimation report. It is therefore the responsibility of the banks to come to the rescue of the farmers, he said.
"The banks this time must achieve the target in lending to agricultural sector," the chief minister said.

As there has been scarcity of fodder in the drought- affected areas, Patnaik said banks should provide loans to the sector by considering fodder cultivation as commercial crop.

"Banks have assured the state government to fulfil suggestions made by the chief minister," a release issued by the chief minister's office said.
Chief Secretary G C Pati said besides commercial banks, the state government has decided to disburse Rabi crop loan of Rs 4,500 crore through cooperative banks this time in view of the drought.