Yavatmal Farmers in Crisis as Bank Initiates Crop Loan Recovery, Demand Loan Waiver
Yavatmal, Maharashtra: Farmers in Yavatmal district are facing severe financial distress as the District Central Bank has begun seizing their agricultural assets to recover unpaid crop loans. This move comes at a time when farmers are already grappling with the aftermath of excessive rainfall during the Kharif season, which caused significant crop damage. With low prices for cotton, soybeans, and tur (pigeon peas), many farmers are unable to recover their cultivation costs, let alone repay loans.
The situation has sparked outrage among farmers, who are now demanding that the Maharashtra government declare a loan waiver to alleviate their financial burden. “We are caught in a vicious cycle. If we try to feed our families, we can’t repay the loans. If we repay the loans, we can’t feed our families. The government must intervene and announce a loan waiver,” said a distressed farmer.
Crop Loan Debt Spirals Out of Control
Many farmers in Yavatmal took crop loans in 2012-13, but due to consecutive crop failures and flawed government policies, their debts have ballooned. For instance, a farmer who initially borrowed ₹2.75 lakh now owes nearly ₹7 lakh. Despite their best efforts, farmers are unable to repay these loans due to poor yields and low market prices for their produce.
“We took loans to invest in agriculture, not for personal luxuries or gambling. But due to the government’s flawed policies and natural calamities, we are left with no option but to consider extreme steps,” said another farmer, highlighting the desperation faced by many in the region.
Bank’s Recovery Measures Add to Farmers’ Woes
The District Central Bank has issued seizure notices to farmers who have defaulted on their loan repayments. Out of 21,700 farmers in the district, approximately 13,000 are classified as defaulters, while the remaining 80,000 members have received loans totaling ₹572 crore in the past year. So far, only ₹60 crore has been recovered, and the bank aims to recover the entire amount by March.
“The bank expects 100% loan recovery by March, after which farmers who repay their loans will be eligible for new loans at revised rates. I assure you that we will disburse loans promptly to those who clear their dues,” said a bank official.
Farmers Demand Immediate Relief
Farmers argue that the bank’s aggressive recovery measures are ill-timed, given the ongoing agricultural crisis. They are urging the government to step in and provide relief through a loan waiver. “The government must understand our plight. We are not defaulters by choice. Natural disasters and poor policies have pushed us into this situation,” said a representative of a local farmers’ union.
A Call for Policy Reforms
The crisis has reignited calls for comprehensive policy reforms to support farmers. Experts suggest that the government should focus on improving crop insurance schemes, ensuring fair prices for agricultural produce, and providing timely financial assistance to farmers in distress.
“The current situation is a wake-up call for the government. Farmers are the backbone of our economy, and their well-being should be a top priority. A loan waiver is just the first step; long-term solutions are needed to prevent such crises in the future,” said an agricultural economist.
As the March deadline for loan recovery approaches, the pressure on Yavatmal’s farmers continues to mount. With their livelihoods at stake, they are pleading for immediate government intervention to avert a deeper crisis. The demand for a loan waiver is not just a call for financial relief but a cry for survival in the face of mounting debts and dwindling hope.
Reporting for Vidarbha News
Stay tuned for further updates on this developing story.
