The government of Telangana today asked banks to solve the farmers’ financial woes by restructuring and rescheduling pending loans for the crops, which have suffered from heavy crop distress due to lack of rain caused by El Niño effect.
Deputy Chief Minister Vikramarka Mallu, holding the finance ministry, told the State Level Bankers’ Committee meeting in relief efforts for drought-hit Kharif 2026 that banks should offer fresh credit for the Rabi cultivation season.
Vikramarka asked financial institutions to look at options of restructuring loans for farmers, which are covered under guidelines of the Reserve Bank of India. He requested banks to look into granting waivers as far as possible with interest rates.
Such a failure should not turn into a failure in the relationship between a farmer and his bank,” Vikramarka added, emphasizing the need for assistance of the farming community on the current problems in Telangana.
The state declared 365 mandals, comprising 111 severely affected, in 31 districts as drought-affected, deputy chief minister said. This dry spell has negatively impacted farming activities, ground water levels, the power grid, state budgets and farmers’ loan repayments.
He pointed out people of farmers can manage their standing crops in difficult situation in spite of all time peak power demand of Telangana of 20,018 MW on October 16.
Vikramarka said that most of the farmers invested their savings along with loans and are having huge problem in repaying their loan as the monsoon did not come as a sharecropper hoped.