Farmers complain of banks knocking on their doors

They have to repay loans before May 29 or else they will be charged an annual interest at the rate of 12.5%

While the government on Wednesday announced deferment of loan recovery, farmers associations have complained that banks and cooperative societies are already collecting farm loans and interest on them, despite the lockdown. Banks that have advanced farm loans and primary agriculture cooperative societies in the villages are issuing notices to farmers asking them to repay loans before May 29. Or else, they will be charged an annual interest at the rate of 12.5%. Farm loans are issued at zero per cent interest rate. If they are repaid before the scheduled period, farmers are expected to repay only the principal amount. Farmers say they are unable to repay loans in the background of rising fertilizer prices, and an unstable market for farm produce due to the lockdown. “Since 2019, we have not got remunerative prices for any of the crops, including cash crops such as sugarcane, oil seeds and tobacco, due to the lockdown. Before 2019, we were badly hit by the floods. We have no means to repay the loans, at least of now. Not even the large farmers will be able to repay the loans if the government demands them,” said Jayashree Gurannanavar, Karnataka Rajya Raitha Sangha leader.