Hyderabad: Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Tuesday, November 10, urged banks to restructure or reschedule eligible farmers’ crop loans in line with RBI guidelines in view of drought conditions. He also asked banks to ensure timely disbursal of fresh loans for the Rabi season.
Speaking at the State Level Bankers’ Committee (SLBC) meeting, he said that bankers must take the initiative to ensure there are no delays in loan sanctioning.
He also advised the banks to sanction the Rs 38,268 crore crop loans earmarked for the Rabi season. The state government pointed out that only 53 per cent of the Rs 96,943 crore loan disbursement target—set for the period ending September 2026—has been achieved so far. The disbursement of monsoon farming loans has also reached only 17 per cent of the target.
The Deputy CM stated that 365 mandals across 31 districts have been declared drought-affected, with 111 of them being severely impacted.
Due to a lack of rainfall, farmers’ investments and incomes have suffered; under these circumstances, they require immediate support from the banking system.
Rescheduling loans, timely disbursement of fresh loans
Emphasis was placed on rescheduling existing loans and ensuring the timely disbursement of fresh crop loans to eligible farmers. Special priority should be given to small and marginal farmers, tenant farmers, and families dependent on agriculture-allied sectors.
It was suggested that financial support be provided for low-water-consuming crops, crop diversification, micro-irrigation, storage, processing, and Farmer Producer Organisations (FPOs). Banks bear the responsibility of providing credit and market support to encourage farmers to shift toward alternative crops, he said.
He urged banks to assist in creating alternative income sources for farming families, rather than having them rely solely on agriculture. It was suggested that, for the current season, efforts be made to provide additional employment opportunities to at least 10 to 15 per cent of these families.
Agriculture minister calls for bankers’ support
Agriculture Minister Tummala Nageswara Rao has urged bankers to take a special initiative to support the farming community, given the rainfall deficit in the state caused by the ‘Super El Nino’ phenomenon. He advised bankers to stand by the farmers, keeping the current situation in mind—an approach that goes beyond routine banking operations.
The minister emphasised that in drought-affected mandals, crop loans should be immediately rescheduled or restructured in accordance with RBI guidelines.
He further stressed that bankers themselves should take the lead, ensuring that farmers are not forced to make repeated, burdensome visits to bank branches. The minister stated that water storage levels in reservoirs have dropped significantly due to the absence of floods in the Krishna and Godavari rivers this year.
Groundwater levels have not recharged to the expected extent, leaving approximately 10 to 15 lakh borewells dry. As this is likely to impact both Kharif and Rabi crops, banks have been urged to devise a special action plan to support the farmers.
The Deputy CM requested that banks adopt a positive approach toward granting educational loans and ensure that the maximum number of eligible students receive financial support.
He said banks should take a proactive approach toward providing loans for individual home construction.
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Source: The Siasat Daily
