Deputy CM urges banks to stand by El Nino-hit farmers

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Tuesday called upon bankers in Telangana to take special measures to ease the burden on farmers facing the El Nino heat in the State.

Banks should consider restructuring of loans and also look at the possibility of offering relief by tweaking interest rates, he said, addressing a special session on “Drought relief measures for Kharif 2026” of the State Level Bankers’ Committee (SLBC) here.

Besides the farming community, which has been the hardest hit, banks should take into account the needs of students relying on education loans and the unemployed youth. For the latter, the State government will be launching the Rajiv Yuva Vikasam scheme on November 19, seeking bank support for the same.

“Please be a little benevolent,” the Deputy Chief Minister said, stressing the need for banks to adopt a proactive approach with regard to extending financial help to different sections of the society.

Farmers had put every possible effort during this past Kharif. “Their effort was there. The rainfall they depended upon, was unfortunately not there. A failed monsoon, however, must not strain the relationship between a farmer and his bank,” he said, pointing out how the all-time peak power demand of 20,018 MW registered on October 16 was reflective of the determination of farmers to save their crops.

El Nino has brought climate risk directly into the lives and livelihoods of farmers and consequently the government had declared 365 mandals across 31 districts drought-affected, with 111 being severely affected. “Behind these numbers are families who prepared their fields, invested their savings and borrowed in the reasonable expectation of a harvest,” the Deputy CM said.

“The same rainfall deficit places pressure on groundwater, the electricity grid, the State’s finances and the farmer’s repayment capacity. Each of us sees a different part of the problem. Through this forum, we must respond to the whole of it,” Mr. Vikramarka said.

“The agriculture calendar does not wait for the financial calendar. And rescheduling previous loans is just part of the answer. Eligible farmers also need timely, need-based fresh credit,” he said.

Banks should also consider providing more loans to women’s self-help groups to spur rural economy, while also shedding what appears to be an adversorial approach to education loans. “I do not know why education loans are not implemented properly. This needs to be monitored by the SLBC,” he said, another area where sharpening of focus is required is home loans.

Earlier, Agriculture Minister Tummala Nageswara Rao urged bankers to support farmers given the rainfall deficit caused by the ‘Super El Nino’ phenomenon. He said the banks should achieve Rabi season crop loan target of ₹38,268 crore.

Principal Secretary to the Finance Department Sandeep Kumar Sultania and others attended the meeting, an official release said.