Farmers of Gajapati district are facing a lot of problems in undertaking cultivation activities as commercial banks, both nationalised and private ones, are not disbursing farm loans to them, alleged many.
There are 50 branches belonging to 20 different banks operating at different places in the district, but all of them are reluctant to provide farm loans to poor farmers. What is deploring is that the district administration don’t also instruct the banks in this regard, lamented many farmer leaders.
“Even as a few Cooperative Banks provide loans, they don’t meet need of all farmers. Hence, most of the farmers are being forced to borrow money from Mahajans (private moneylenders) at higher interest rates. Many of farmers are now under pressure of loan as they are unable to repay higher-interest loans,” said Gajapati Zilla Chasi O Krushak Sangha president Suryanarayan Patnaik.
The banks are also not doling out loans for business and industry purposes. As a result, Gajapati has lacked behind in the area of industrial development with 30th position in the district list, said Patnaik.
People have demanded that the banks should provide services as they do in other districts.