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Resource centre on India's rural distress
 
 

Delhi claims maximum of Farmers’ loan


According to the National Bank of Agriculture and Rural Development (NABARD) data on loans given out by nationalised and cooperative banks, there are more farmers doing agriculture in Delhi than Madhya Pradesh, Uttar Pradesh, Karnataka and West Bengal.

The farmers in Delhi were allotted loan of Rs 22,077 crore in 2009 alone at mere 5% rate of interest, which is the second highest after agriculture-rich Punjab.

Delhi’s loan disbursal amount is bizarre, as the city has a mere 39,000 hectare of cropped land, of which 26,785 hectare is the net area sown.

Citing agriculture as their profession, hundreds of Delhi’s residents have taken loan on cheaper rates.  According to the government officials these residents are city’s elite who have massive farmhouses and the so-called agriculture land in these farmhouses which are locates in the outskirts of the city.

“These are owned by wealthy businessman and politicians. These farmhouse owners acquire loans citing agriculture as their profession. But these are only used for agriculture purposes,” official said.

According to the official, the only agriculture activity in these farmhouses is the planting of vegetables and flowers.

“If the farmers are involved in any kind of agriculture activity at their farmhouse, they can avail of agricultural loans’” Bijender Singh, chairman, Delhi State Co-operative Society (DSCS) said.

The owners also take loans as Kisan Credit Cards, which is 15,000 per hectare.
“The process is easy. A loan of up to 1.5 lakh per hectare is given without presenting any surety.” A rural development department official said.

According to an official of the agricultural directorate, “Getting illegal loans in the name of farming is quite rampant in delhi. This land may be categorized as “agricultural”, but the fact is that it has become residence of billonaires.”

Many farmers sell their land to businessman and in the last 10-15 years, unauthorized colonies have been developed on agricultural lands.

Farmers can apply for agricultural loans in many categories like buying raw materials, horticulture, aquaculture, animal husbandry, floriculture and sericulture businesses.