Telangana’s Ambitious Loan Waiver Scheme: A New Dawn for Farmers

In a significant move to fulfill electoral promises, the Telangana government is set to release Rs. 6,098 crore to benefit over 11 lakh farmers as part of its extensive Loan Waiver Scheme. By the end of August, a staggering Rs. 31,000 crore will be credited to 40 lakh farmers, marking a monumental step in agricultural reform.

Starting Thursday, the government will implement the crop loan waiver scheme, releasing the first tranche of Rs. 6,800 crore to farmers with loans under Rs. 1 lakh. This initial phase aims to benefit approximately 11 lakh farming families, providing them with much-needed financial relief. On the eve of the scheme’s implementation, Chief Minister A. Revanth Reddy convened a meeting with ministers, MLAs, and other party leaders at Praja Bhavan. During this meeting, he announced the plan to waive loans under Rs. 1 lakh at 4 pm on Thursday. He further detailed that loans between Rs. 1 lakh and Rs. 1.5 lakh would be waived by the month’s end, with the remaining waivers to be completed by August.

Chief Minister Reddy highlighted Congress leader Rahul Gandhi’s commitment on May 6, 2022, to waive crop loans up to Rs. 2 lakh in Telangana. Reddy emphasized that when the Gandhi family makes a promise, it is upheld, citing Sonia Gandhi’s successful formation of Telangana state in 2014 as a precedent. This loan waiver scheme stands as a testament to their commitment.

Despite financial experts’ skepticism about the feasibility of waiving all crop loans, the Telangana government pressed forward. Chief Minister Reddy described the waiver as a landmark achievement in his career, reiterating Congress’s goal to make every farmer in Telangana debt-free. He expressed his vision of Telangana becoming a national role model in agricultural policy.

Chief Minister Reddy urged Congress leaders to communicate the government’s efforts to the public. He encouraged organizing celebrations in villages and mandals, including bike rallies and events at Rythu Vedikas, to highlight the government’s commitment to its promises. Reddy called for a national-level discussion on loan waivers, noting that no other state has allocated Rs. 31,000 crore for crop loan relief.

Reddy instructed Congress MPs to highlight in Parliament the implementation of Rahul Gandhi’s guarantee. He criticized former Chief Minister K. Chandrasekhar Rao for misleading farmers about loan waivers during the BRS regime. In just seven months, Reddy’s administration has spent Rs. 30,000 crore on welfare initiatives.

Deputy Chief Minister Mallu Bhatti Vikramarka spoke about the challenges faced in implementing the loan waiver scheme. Despite the financial difficulties left by the previous BRS government, the current administration managed to mobilize funds to support farmers. Vikramarka assured that all farming families, including six lakh families without ration cards, would benefit from the waiver. Vikramarka emphasized that the Congress government has successfully implemented five key guarantees within days of coming to power. However, he noted that these achievements have not received adequate publicity at the grassroots level, calling for greater awareness and acknowledgment of the government’s efforts.

The Telangana government’s ambitious Loan Waiver Scheme represents a transformative step towards supporting the state’s farmers. By addressing financial burdens and promoting agricultural development, the administration aims to set a precedent for the rest of the country. With continued efforts and community engagement, Telangana is poised to lead in agricultural policy and farmer welfare.