Hyderabad: Former Finance Minister and Siddipet MLA T Harish Rao has raised serious concerns about the delay in implementing the crop loan waiver scheme, which promised to clear loans up to Rs 2 lakh for farmers.
In an open letter to Chief Minister A Reventh Reddy, Harish Rao expressed his disappointment with how the state government has handled the situation. He accused the administration of misleading not only the people of Telangana but also the entire nation about the status of the loan waiver.
Harish Rao pointed out that the Congress government, which came to power with promises to support farmers, specifically assured that crop loans would be waived by December 9, 2023. However, this deadline was postponed, and during the parliamentary elections, the promise was extended to August 15, 2024, with a commitment to complete the waiver by Independence Day. To date, this has not been fulfilled.
He further mentioned that he obtained data from the State Bank of India (SBI) through an RTI request on September 25, 2024. The data revealed that a majority of farmers have not received the promised loan waiver. According to the figures from SBI, out of 5,74,137 farmers with loans under Rs 1 lakh, only 2,99,445 farmers have received the waiver. Similarly, out of 2,62,341 farmers with loans between Rs 1 lakh and Rs 1.5 lakh, only 1,30,915 loans have been waived. Additionally, out of 1,65,607 farmers with loans between Rs 1.5 lakh and Rs 2 lakh, only 65,231 have benefited from the waiver.
Harish Rao emphasized that around 50 percent of farmers, nearly 5.5 lakh, are still waiting for their loans to be waived, just within SBI. He suggested that similar situations likely exist in other banks as well.
Furthermore, many farmers who took out private loans with high interest, trusting the government’s assurances, are still waiting for the loan waiver to be completed. The promises made regarding loans exceeding Rs 2 lakh have also not been fulfilled, as confirmed by the SBI report.
Harish Rao also criticized the state government for imposing 31 restrictive conditions that have disqualified many deserving farmers from receiving the waiver. He highlighted the government’s failure to disburse the Rythu Bandu funds during the Dusshera Kharif season, marking the first time such a delay has happened since the scheme started under former Chief Minister K. Chandrasekhar Rao. The Rythu Bandu scheme has provided Rs 72,000 crores to farmers over the past six years and has been vital for the agricultural community.
In his letter, Harish Rao urged the Chief Minister to fulfill the government’s promises and complete the crop loan waiver without further delay. He stressed that the financial difficulties and loss of trust among Telangana’s farmers due to these broken promises must be addressed immediately.
