HYDERABAD: Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has urged banks to restructure or reschedule crop loans of eligible farmers in drought-affected areas in accordance with Reserve Bank of India (RBI) guidelines and ensure timely disbursement of fresh loans for the Rabi season.
Speaking at the State Level Bankers' Committee (SLBC) meeting on Tuesday (November 10), he asked banks to expedite the sanction of Rs 38,268 crore in crop loans earmarked for the Rabi season. He said bankers at the field level should take the initiative to prevent delays in loan disbursement.
The state government expressed concern that only 53 per cent of the overall agricultural credit target of Rs 96,943 crore had been achieved up to September 2026. Disbursement of monsoon-season crop loans had reached only 17 per cent of its target.
Vikramarka said 365 mandals across 31 districts had been declared drought-affected, including 111 classified as severely affected. The drought has added to the financial difficulties faced by farmers, prompting the government to seek timely credit and loan relief from banks.
Agriculture Minister Tummala Nageswara Rao highlighted the decline in reservoir storage levels following the absence of floods in the Krishna and Godavari rivers this year. He also said groundwater had not recharged as expected, leaving an estimated 10 to 15 lakh borewells dry and putting both Kharif and Rabi crops at risk.
Banks were asked to prioritise small and marginal farmers, tenant farmers and families dependent on allied agricultural activities. They were also urged to support low-water-consuming crops, crop diversification, micro-irrigation, storage and processing facilities.
The government also asked banks to help create alternative income opportunities for 10 to 15 per cent of farming families during the current season. Vikramarka called for a positive approach towards education loans and loans for individual house construction.
Agriculture Minister Tummala Nageswara Rao also urged bankers to extend special support to farmers in view of the rainfall deficit. (with inputs. (with inputs of media organisations)