The ₹31,000-crore crop loan waiver scheme in Telangana has triggered a political firestorm, with the ruling Congress and opposition parties BRS and BJP trading barbs over its implementation.
The Congress asserts that the scheme’s rollout successfully concluded after the third phase of disbursals for farmers with loans under ₹2 lakh on August 15. However, opposition parties contend that lakhs of farmers remain excluded, hindering their ability to secure fresh loans.
BRS Working President K T Rama Rao alleges that only 40 per cent of farmers received loan waivers. Former Agricultural Minister S Niranjan Reddy echoed this sentiment, stating that while the government pledged to waive ₹31,000 crore, only ₹18,000 crore was disbursed.
Forced to acknowledge that some farmers are still awaiting funds, the Congress government attributes the delay to Aadhar linkage and other technical issues and minor errors in bank account details.
The State Government, however, was forced to admit that ‘some farmers’ were yet to receive the amount in their accounts. Uttam Kumar Reddy, Minister for Civil Supplies, said that some of their bank accounts could not be reached due to issues related to Aadhar linkage.
“We could not transfer the money to 1.65 lakh accounts for want of Aaadhar details. Loans of another 6.5 lakh farmers could not be cleared due to errors in the account details and absence of ration cards,” the Minister said.
As a result, the government cleared loans of only eight lakh farmers (with loans under ₹2 lakhs).
In the first two phases last month, the government cleared loans worth ₹12,000 crore for farmers with loans under ₹1.5 lakhs. The third phase, which kicked off on Independence Day, was meant for farmers with loans under ₹2 lakhs. The scheme was part of the six poll promises made by the Congress Party during the Assembly elections.
The BRS maintains that the government disbursed only ₹18,000 crore to clear the dues of 22 lakh farmers, leaving many in the lurch. Initially, the government insisted on the scheme’s completion by August 15, but mounting criticism and farmer grievances prompted key ministers to offer explanations for the delays.
The Agriculture Ministry cited outstanding loan amounts exceeding Rs 2 lakh and technical glitches as reasons for non-disbursal. Additionally, they reported that funds deposited in the accounts of 22,000 farmers were returned due to technical issues.
A senior BRS leader and former Finance Minister T Harish Rao accused the government of resorting to farmer arrests to suppress dissent over the scheme’s shortcomings. This political row underscores the contentious nature of the crop loan waiver scheme and its impact on farmers and the political landscape in Hyderabad.
