Congress government U-turn on loan waiver comes as rude shock for Telangana ryots
The government had initially assured farmers that loans above Rs 2 lakh would require partial repayment by the borrowers, with the remaining amount waived
Hyderabad: Farmers across Telangana are grappling with frustration and disappointment with the State government retracting its promise of a comprehensive loan waiver. Agriculture Minister Tummala Nageswara Rao on Saturday announced that loans exceeding Rs 2 lakh would not be considered for the waiver, leaving many farmers disillusioned.
The government had initially assured farmers that loans above Rs 2 lakh would require partial repayment by the borrowers, with the remaining amount waived.
While some farmers complied, others awaited further clarity, only to face financial setbacks.
Strict guidelines for the waiver have excluded a significant number of loanees, with even loans below Rs.1 lakh remaining unaddressed.
In Karimnagar district’s Kothapalle village, where over 70 percent of households rely on agriculture, small and marginal farmers feel abandoned.
A woman farmer with a loan of less than Rs 40,000 from a local bank reported receiving no relief. She also highlighted discrepancies in the Rythu Bharosa scheme, which assisted only a fraction of her land-holding.
The phased implementation of the scheme since July 2024 disbursed Rs 21,000 crore, benefiting over 20 lakh farmers. However, only short-term loans from specific banks, taken between December 2018 and December 2023, were reportedly considered.
Farmers with loans exceeding Rs 2 lakh, rescheduled loans, or those borrowed through self-help groups were excluded. Besides this, loan accounts with missing Aadhaar numbers, ration cards, and pattadar passbooks disqualified many due to documentation issues.
Farmers’ organisations criticized the government, citing nearly 15 lakh farmers still without updated pattadar passbooks due to glitches in the Dharani portal and over 12 lakh ration card applications still pending.
They argue that the inclusion of interest in the Rs 2 lakh cap further undermined the relief. While the scheme benefited over 20 lakh farmers, at least 16 lakh await assistance.
The widespread omissions have sparked outrage, with many accusing the government of failing to honour its election promises.