Bhatti Vikramarka asks banks to restructure crop loans in drought-hit areas

Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka asked banks to urgently restructure and reschedule crop loans in drought-affected areas due to El Niño. He also wanted them to expedite the disbursal of fresh credit worth Rs 38,268 crore for the ongoing Yasangi (Rabi) season, as farmers face mounting financial distress.

Chairing the State-Level Bankers’ Committee (SLBC) meeting at Praja Bhavan on Tuesday, Bhatti Vikramarka asked banks to proactively identify eligible farmers and implement relief measures under RBI guidelines without making them run from pillar to post. Small and marginal farmers, tenant farmers and families dependent on allied agricultural activities are to be given priority.

Agriculture Minister Tummala Nageswara Rao expressed concern that only 53 per cent of the Rs 96,943-crore agricultural credit target had been achieved up to September 2026, while monsoon farming loans accounted for just 17 per cent of the target. He called for the immediate disbursal of the Yasangi crop loan target of Rs 38,268 crore.

Banks were also asked to finance alternative crops such as pulses, oilseeds and horticultural crops, besides drip and sprinkler irrigation, oil palm cultivation and allied activities, including dairy, poultry, livestock rearing and beekeeping. Support for Farmer Producer Organisations and women’s self-help groups was also emphasised.

The Ministers said banks should help create alternative income opportunities for farm households, with a target of covering at least 10 to 15 per cent of families this season. They asked banks to examine additional loans of up to Rs 2 lakh per self-help group and extend credit to unemployed youth for self-employment. The SLBC convenor was asked to expedite the implementation of the Rajiv Yuva Vikasam programme by November 19.

Banks were also urged to expand lending to education, individual housing, MSMEs and infrastructure. The SLBC convenor was asked to monitor education loans to ensure that eligible students receive adequate assistance. With around 365 mandals across 31 districts declared drought-affected, banks were asked to coordinate with district collectors, agriculture officials and lead district managers to implement relief measures on the ground.