The Hindu Business Line : Interest waiver sought

MADURAI: Tiruchi District Central Cooperative Bank (TDCCB) has sought Rs 1 crore from Tamil Nadu State Cooperative Bank, its apex body, to waive interest on farm loans sanctioned by it, between April 1 and September 30, 2002.

TDCCB has jurisdiction over Tiruchi, Karur and Perambalur districts. It has sanctioned loans to about 22,700 farmers in these districts. The accrued interest on these loans has risen to about Rs 5.05 crore.

Though the State Government has announced that interest accrued on loans taken by small and marginal farmers would be written off due to successive drought conditions, the guidelines of the National Bank for Agriculture and Rural Development (Nabard) provides eligibility for waiver of interest only to banana cultivators and paddy growers. As such, TDCCB could extend the relief only to the tune of Rs 82.58 lakh covering 2,885 farmers.

According to sources, TDCCB has obtained `annavari certificates', an official record testifying the impact of drought condition on farm operations for 18 taluks from these districts and forwarded them to the apex body for consideration of waiver of the interest accrued on loans.

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