Madurai ryots cry foul as banks seek loan repayment

MADURAI: Despite the Tamil Nadu government announcing crop loan waiver schemes on June 16, cooperative banks are allegedly troubling farmers by issuing notices demanding that they make full upfront payment before availing themselves of the loan waiver benefits.

Thousands of farmers are struggling due to confusion over notices issued by cooperative banks.

This comes despite explicit clarification from the government that all categories of farmers — marginal, small and large — who availed crop loans of up to Rs 75,000 from cooperative banks would receive a full waiver. Those who availed crop loans exceeding Rs 75,000 would receive a waiver of Rs 35,000.

However, farmers in Kallandhiri village near Madurai said they were taken by surprise when a ration shop employee recently distributed notices issued by the Poondi Primary Agricultural Cooperative Credit Society, Appanthiruppathi, in Madurai East.

"We were shocked when the cooperative bank demanded that we repay the entire loan amount to avail ourselves of the waiver benefits," a group of farmers alleged.

A demand notice issued to a farmer by the Poondi Primary Agricultural Cooperative Credit Society (No. A 3065) highlights this stark administrative contradiction:

"According to the guidelines... the crop loan amount you received from this society is Rs 72,710... You are informed to pay your crop loan instalment amount in advance... Once the final list for the said waiver amount is finalised and released, it will be credited to your savings account."

Farmers in the area said they suffered heavy paddy crop losses last year due to pest attacks.

"This year is even more difficult because drought-like conditions prevail in the taluk," said Alagar Swamy (64), a farmer from the village.

During the Tamil month of Aadi, farmers in Madurai prepare their fields for paddy cultivation. In areas such as Melur, where irrigation water is supplied through the Periyar–Vaigai canal, farmers cultivate paddy twice a year.

"When we are already struggling to cope with drought-like conditions, the bank is sending notices demanding that we repay the entire loan amount. Where will we get the money?" the farmers asked.

"Political parties make all these promises during elections. Once they come to power, they forget the farmers," they alleged.

SP Ilangovan, district secretary of the All India Kisan Sabha (AIKS), Madurai, claimed that the issue was not confined to Madurai district and that farmers across the State were facing similar problems.

"In some cases, cooperative banks are clubbing one or two loans availed by members of the same family and demanding that they repay the entire amount before granting the waiver," he alleged.

He said the AIKS would soon organise a statewide meeting to draw the government's attention to the plight of farmers.