CHENNAI: While statistics point to an increase in crop coverage in the ongoing paddy season in Tamil Nadu, a glance at the crop loan scenario suggests that farmers continue to get step-motherly treatment at nationalised banks, which are not only reluctant to forward agricultural loans, but also flout Reserve Bank of India (RBI) norms in providing crop insurance. According to information given by the State Level Bankers’ Committee (a collective of all banks in the State) to the Agriculture Department, a bulk of the total of Rs 29,100 crore given by banks as loans in 2010-2011, was listed under the category ‘Crop Loan Miscellaneous’ (CLM). However, Deputy Director of Agriculture, Santhanagopalakrishnan says that Rs16,406 crore or 56.37 per cent of the amount under the CLM category, reflects mainly jewel loans taken by farmers. This, despite it being mandatory for banks to provide crop loans without any security for up to Rs 50,000.According to the Regional Manager of AIC, C Anbarasu, a lion’s share of jewel loans forwarded by nationalised banks to farmers are treated as crop loans on their books, but have not been covered under the National Agriculture Insurance Scheme (NAIS), mandatory under RBI norms. Data shows that in 2010-2011, less than 14 per cent of farmers in the State were covered under NAIS.
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