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Drought-like conditions spur crop loan distribution in Chhattisgarh

July 14, 2024
in News
Drought-like conditions spur crop loan distribution in Chhattisgarh
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Amid the threat of drought looming over parts of Chhattisgarh following scanty rainfall, the state has seen a surge in crop loan disbursement in the last few months.

The government is ensuring the distribution of short-term loans to the maximum number of farmers across the state.

But the post-poll scenario in the state has made officials sceptical about meeting the target in the kharif marketing season 2024-25.

In the election year that concluded in December 2023, farmers used to avail loan anticipating the new government would write it off as poll promises.

Ahead of the Assembly elections, the then chief minister Bhupesh Baghel promised a loan waiver to farmers if Congress returned to power.

It was a major electoral promise that drove 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 off around Rs 9,000 crore of farmer loans. It also waived off another Rs 350 crore of irrigation tax.

However, Congress was trounced in the 2023 elections and BJP had not offered any sop on farm loans.

But the amount of disbursement for the current season has surpassed the figure of last year, which was also election year.

“So far, 1.174 million farmers have received short-term agricultural loans worth Rs 5,250 crore through 2,058 cooperative societies managed by state cooperative banks in the state,” a state government spokesperson said.

Loans worth Rs 5,000 crore were distributed last year. This year, the state government has set a loan distribution target of Rs 7,300 crore for farmers. As of now, about 72 per cent of the target has been achieved, the spokesperson added.

According to agriculture experts, the drought-like situation prevailing in some pockets of the state could be the possible reason for the surge.

Chhattisgarh has so far received 244 mm of rainfall, which is about 30 per cent less compared to the average rainfall during the period.

The 12 major dams in the state have only 31.44 per cent water. One of the major dams in Chhattisgarh — Gangrel — has only 4.91 per cent of its usable water left.

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Copyright for syndicated content belongs to the linked Source : BusinessStandard – https://www.business-standard.com/economy/news/drought-like-conditions-spur-crop-loan-distribution-in-chhattisgarh-124071500009_1.html

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