Drought-like conditions boost farm loan distribution in Chhattisgarh
While parts of Chhattisgarh are grappling with drought due to scanty rainfall, the state has seen an increase in farm loan disbursements in recent months.
The government is ensuring that as many farmers in the state as possible receive short-term loans.
But the post-election situation in the state has left officials skeptical about achieving the target in the 2024-25 kharif marketing season.
In the election year ending in December 2023, farmers took out loans in the expectation that the new government would dismiss them as election promises.
Before the state Assembly elections, then Chief Minister Bhupesh Baghel promised that farmers would have their loans waived if Congress came to power again.
It was a key election promise that brought Congress to power in Chhattisgarh in 2018, after a gap of 15 years.
The first decision taken by the Baghel government soon after coming to power was to waive around Rs 9,000 crore in farmer loans. Another Rs 350 crore in irrigation tax was also waived.
However, the Congress lost in the 2023 elections and the BJP did not offer any relief on farm loans.
But the amount paid out for the current season exceeds that of last year, which was also an election year.
“So far, 1.174 million farmers have received short-term loans worth Rs 5,250 crore through 2,058 cooperative societies run by state cooperative banks in the state,” a state government spokesperson said.
Last year, loans worth Rs 5,000 crore were disbursed. This year, the state government has fixed a loan target of Rs 7,300 crore for farmers. So far, about 72 per cent of the target has been achieved, the spokesperson added.
According to agricultural experts, the drought affecting some parts of the state could be the cause of the increase.
Chhattisgarh has received 244 mm of rainfall so far, which is about 30 percent less compared to the average rainfall during this period.
The 12 largest dams in the state have only 31.44 percent of its usable water. One of the largest dams in Chhattisgarh — Gangrel — has only 4.91 percent of its usable water left.
First print: Jul 15, 2024 | 12:27 PM IST