Strict action against banks for missing crop loan disbursement target: Minister
Bhubaneswar: Warning of dire consequences over not meeting the fiscal Rabi crop loan disbursement target, Cooperation minister Damodar Rout on Thursday asked the cooperative banks to disburse the remaining amount of Rs 2,000 crore by March 31.
With the deadline to disburse the Rabi loans ending in March 31, till now the government has been able to provide Rs 3000 crore as it remains doubtful as to how it will be able to pay the balance of Rs 2000 crore within such a short span of time.
Amid such a scenario, Rout said some banks have been asked to give clarification on failing to meet their targets.
“Those who have not been able to extend loans for whatsoever reasons it may be, have been asked to meet their targets. In case of failures, if negligence is detected then strict actions would be initiated against them,” he said.
“The banks have been asked to complete the process on a war footing. I hope we will be able to meet the target,” the minister added.
Data shows that a minimum of 29 per cent of crop loans have been extended in Gajapati district followed by 37 per cent in Nuapara district while 39 per cent loans have been disbursed in Jharsuguda district.
On the other hand, crop losses and decline in selling prices of harvests have discouraged farmers to take loans this year.
“When I approached the bank they denied giving me loans. Farming like this is difficult. I have not been able to repay the loans taken earlier due to crop losses. This is very frustrating,” said a farmer from Ichhapur of Nuapara district, Pannalal Poda.