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The Telangana government has asked banks to restructure crop loans for farmers facing drought-related financial difficulties. The request covers 365 drought-affected mandals across 31 districts.
Deputy Chief Minister Mallu Bhatti Vikramarka raised the issue during a special State Level Bankers’ Committee meeting in Hyderabad on November 10.Telangana crop loan restructuring
The government wants banks to provide relief under Reserve Bank of India guidelines. It has also asked financial institutions to ensure fresh credit for the Rabi season.Telangana crop loan restructuring
111 Mandals Face Severe Drought
The state has identified 365 mandals as drought-affected. Officials have classified 111 of these mandals as severely affected.
Poor rainfall has damaged agricultural prospects in several areas. It has also increased pressure on groundwater resources and farmers’ repayment capacity.
Many farmers depend on crop loans to purchase seeds, fertilisers and other agricultural inputs. Weak rainfall can reduce production and make timely loan repayment difficult.
The government has therefore asked banks to consider restructuring or rescheduling eligible loans. Depending on the severity of drought, repayment periods may extend by three or five years under applicable guidelines.
Fresh Credit for Rabi Cultivation
The government has also stressed the need for fresh agricultural loans. It wants banks to provide timely financial support for the ongoing Rabi season.
Agriculture Minister Tummala Nageswara Rao highlighted the need to speed up credit distribution. He said banks had achieved only 53 per cent of the overall agricultural lending target by September 2026.
The state has set a Rabi crop loan target of ₹38,268 crore. Banks must accelerate lending to help farmers prepare for the next cultivation cycle.
Support Beyond Traditional Crops
The government has also encouraged banks to support alternative agricultural activities. These include pulses, oilseeds, horticulture and micro-irrigation.
Financial assistance for dairy, poultry and other allied activities can help farmers diversify their income. Such support may reduce dependence on a single crop.
The state has urged banks and district officials to coordinate their efforts. They must identify eligible farmers and ensure that relief reaches affected households.
Relief Depends on Bank Implementation
The government’s request aims to reduce immediate financial pressure on drought-hit farmers. However, individual loan relief will depend on eligibility and applicable banking rules.
Timely implementation will remain important. Farmers need both repayment relief and fresh credit to protect their livelihoods during the Rabi season.
