Private and public sector banks that have pumped in credit worth Rs 1,456 crore in the form of crop loans to farmers in the district are now worried about the repayment, given the scant rainfall in the district as July 15 passed by.

"The banks have collectively given out credit worth Rs 1,456 crore to farmers in the district against a target of Rs 1,950 crore. Though this was a remarkable achievement, the possible difficulty in repayment is a a cause for concern to the banks, given that there are no rains in the district. The last date of sowing for the kharif crop (July 15) has gone by. Even if the farmers sow now, it is less likely that they will get a good crop," a senior banking official said.

July 15 has passed by and that is the time when farmers with crop insurance are able to benefit - if they have sown seeds. In Nashik there has been no sowing and that means farmers will not benefit from the sowing season, which will directly impact the repayment process.

"Considering that farmers have not been able to sow seeds given the failure of rainfall, recovery will also be stopped, we feel. But the government has not announced any such move at this point. Our recovery will start after the 120 day-cycle after July 15 - by which time the crop is estimated to be harvested. We are hopeful that there will be some decision from the government," bankers said.

The district administration has said that announcing any compensation to farmers in case of less or no rainfall beyond its jurisdiction. "At the most, we can ask banks to hold the recovery drive only to a limited period, after which government orders will decide the future," a senior officer from the revenue office said.

Shantanu Hingmire, a farmer from Madgsangvi village on the outskirts of the city, said that he had already taken a loan of Rs 31,000 from banks and has opted for crop insurance.

"Since there were no rains, we were unable to sow seeds in the fields and hence will get no insurance cover. We thought the rains will help, but there is no sign of the same. It rained good for two days, but that is too late and too little. We pray for better rains. We are sure the government will help the farmers if the case worsens," Hingmire said.

Source - http://timesofindia.indiatimes.com/