Paddy growers prepare for stir as banks refuse loans against PRS
With the banks continuing to deny loans against Paddy Receipt Sheets (PRS), paddy farmers across Kuttanad and upper Kuttanad are gearing up to intensify their protests.
As per estimates, around 7,000 paddy farmers in Kottayam district alone are awaiting payments for the paddy procured during the current season. The total dues are estimated at approximately ₹81 crore.
Minister's assurance
Despite assurances from Food and Civil Supplies Minister G.R. Anil that the PRS payment issue will be resolved, farmers say banks are still refusing to accept their receipts. While the State Bank of India (SBI) is accepting PRS, it has only sanctioned loans against sheets dated up to March 31. Meanwhile, Canara Bank has reportedly withdrawn from the scheme altogether, allegedly demanding a hike in interest rates.
'Farmers have been waiting for their payments for over a month. Canara Bank has not accepted a single PRS this season. This is the first time a bank has completely opted out of the scheme,' said V.J. Lally, patron of the Nelkarshaka Samrakshana Samithi, a collective of paddy farmers.
PRS loans effectively serve as advance payments for paddy procured by the government. The delay in issuing these loans is severely affecting preparations for the next cultivation cycle in the region. Although authorities had earlier proposed involving Kerala Bank in the PRS loan scheme, no action has followed in this direction.
Taking note of the mounting crisis, the Kerala Congress has announced an indefinite protest. Party chairman P.J. Joseph has urged the State government to immediately release ₹100 crore as payment for paddy collected from various padasekharams (polder networks) in Upper Kuttanad.
'This prolonged delay is pushing farmers into deep distress. It's high time the State and Central governments implement practical and lasting solutions to the recurring crises in paddy procurement and stock reservation,' Mr. Joseph said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 hours ago
- Time of India
PSU banks to set up common platform for debt recovery
New Delhi: Five public sector banks (PSBs), including State Bank of India , Punjab National Bank and Bank of Baroda , are working out the details and workflow for a common collection firm to recover retail and MSME loans below Rs 5 crore. The initiative will be pursued through PSB Alliance Pvt Ltd, which will develop a proof of concept, said people familiar with the development. Other state-run banks will join the project later, they said. "This will help lenders focus on core banking activities while enhancing recoveries in cases of multiple loans to a single borrower from different banks," said a senior bank executive, adding that once finalised, all banks will take a stake in the firm as in the case of National Asset Reconstruction Company Ltd. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A transformação de Fausto Silva aos 74 anos é inaceitável. Paperela Undo Only three-four PSBs currently outsource their debt collection and it is largely for retail loans, another bank executive said. "This new collection agency can shape up to be a step before banks transfer such accounts to asset reconstruction companies," he said, adding it would help banks keep their focus on recovering large amounts. The finance ministry has already directed banks to review their top 20 cases regularly and also monitor accounts where resolution plans are pending for consideration with the committee of creditors for more than three months. Live Events "The firm should be fully operational in this fiscal. We are also collaborating with banks on other initiatives," said an official from PSB Alliance, a company set up by public sector banks to provide a common platform for delivering banking services. Emails sent to banks seeking comment did not elicit any response till press time Monday. The government, through the banks' reform agenda, Enhanced Access and Service Excellence Reforms, has been nudging PSBs to scale up internal collaboration, create common utilities and improve their performance and competitiveness. Banks are already collaborating on some other common platforms which include the auction platform Banknet, door-step banking and a cloud infrastructure for PSBs. According to a Care Ratings report, as of March 31, 2025, the gross non-performing assets of PSBs improved significantly, declining by 17% from a year earlier to ₹2.94 lakh crore. It, however, noted that fresh slippages during Q4 FY25 rose 7.8% Y-o-Y to ₹25,000 crore.
Hans India
11 hours ago
- Hans India
Negligence by District Bank Officials Delays PM Vishwakarma Scheme Benefits in Jogulamba Gadwal
Gadwal: In a strong statement made at the State Bank of India branch in Aija Mandal of Jogulamba Gadwal district, former BJP district president S. Ramachandra Reddy lashed out at district-level bank officials for causing severe inconvenience to beneficiaries of the PM Vishwakarma Scheme. He expressed deep concern over the continued negligence by bank authorities, which he said is delaying vital support to eligible citizens. Speaking to reporters after meeting the bank manager, Ramachandra Reddy highlighted the noble vision of Prime Minister Narendra Modi, who launched the PM Vishwakarma scheme with the intention of empowering people from 18 traditional artisan professions. The scheme, he said, has already brought hope and happiness to thousands across the country. However, he added, the ground reality in Jogulamba Gadwal paints a different picture. Despite completing the required six-month training under the scheme, many beneficiaries are still awaiting the necessary loan disbursements, Reddy pointed out. He criticized the district-level bank authorities for failing to forward the list of beneficiaries to local bank branches, thereby stalling the next phase of assistance. 'This is not just administrative delay—it is negligence that directly affects the livelihoods of poor families,' said Reddy. 'If the bank authorities had acted on time, beneficiaries could have received loans ranging from ₹1 lakh to ₹3 lakhs, enabling them to improve their economic conditions. The delay is a betrayal of the Prime Minister's vision.' He further alleged that even though login access has been provided from gram panchayats and municipal bodies, the process is still obstructed due to the apathy of district officials. This, according to Reddy, has led to widespread distress among applicants who have fulfilled all eligibility criteria but are still waiting for support. The BJP, he stated, demands immediate action—including issuing full login access to all gram panchayats and municipal bodies in the district. He warned that failure to respond swiftly would lead the party to mobilize thousands of affected beneficiaries for a massive protest at the district headquarters. 'We will not hesitate to hold sit-ins and demonstrations until the issue is resolved and the responsible officials are held accountable,' Reddy asserted. The press interaction and visit to the bank were also attended by several BJP leaders and supporters, including: Town President Kompati Bhagat Reddy State Kisan Morcha Executive Member Medikonda Bhim Sen Rao Lakshman Goud, Bellamkonda Nagaraju, Lakshmanachari, Raghu, Vinod, Srinivas Reddy, and Sudhakar Achari, along with several PM Vishwakarma scheme beneficiaries. This development has brought the functioning of district banking authorities under scrutiny and may compel administrative intervention if the issue remains unresolved.
Economic Times
13 hours ago
- Economic Times
Monsoon showers to bring monetary relief? SBI bets on a likely 50 bps rate cut this June
Reserve Bank of India may cut repo rate by 50 bps on June 6. State Bank of India expects this move to boost credit demand. The banking system has ample liquidity. Savings and fixed deposit rates have already decreased. Inflation is under control, so growth is the priority. India's GDP grew by 7.4% in the fourth quarter. Tired of too many ads? Remove Ads Inflation in check, growth takes priority Tired of too many ads? Remove Ads Monsoon brings optimism and economic relief Rain, rates, and rural demand: All eyes on RBI The Reserve Bank of India (RBI) is likely to slash the repo rate by 50 basis points (bps) in its upcoming monetary policy announcement on June 6, a new report from the State Bank of India SBI ) noted. The report refers to the anticipated move as a 'jumbo' cut, likely aimed at reviving credit demand and sustaining economic momentum."We expect a 50-bps rate cut in the June 2025 policy, as a large cut could reinvigorate the credit cycle ," the SBI report said, adding that the total rate cut during this easing cycle could eventually reach 100 highlighted that the Indian banking system is currently flush with liquidity, which is accelerating the repricing of liabilities. Many banks have already slashed savings account interest rates to as low as 2.70%, and fixed deposit (FD) rates have been cut by 30–70 bps since February this ample liquidity and improved financial stability, the report expects that the RBI's rate cuts will continue to be effectively transmitted to deposit and lending report emphasised that inflation remains within the central bank's comfort zone, allowing policymakers to shift focus toward boosting growth. 'Given easing inflation and stable financial conditions, monetary policy must now prioritise sustaining growth momentum,' the report GDP grew by 7.4% in the fourth quarter of FY25, down slightly from 8.4% a year earlier. However, growth was underpinned by a robust 9.4% year-on-year rise in capital formation, a positive sign for future economic to the upbeat outlook, the Indian Meteorological Department (IMD) has forecast an above-normal monsoon for 2025 — the second consecutive year of strong rainfall. This year's rains have arrived in Kerala eight days ahead of schedule, spreading to nearly half the country earlier than expected — the earliest monsoon onset in 16 monsoon is vital to India's nearly \$4-trillion economy, supplying about 70% of the annual rainfall needed for agriculture. Farming employs over half of India's 1.4 billion population and contributes roughly 16% to GDP. Crops like rice, wheat, sugarcane, soybeans, and cotton depend heavily on seasonal rains.A bountiful monsoon supports higher crop yields, eases inflationary pressure, and boosts rural incomes — often translating into increased consumer spending during festive and wedding poor rains can trigger food inflation, force imports, and prompt export prices, which make up nearly half of India's Consumer Price Index (CPI), are a key metric for the RBI when setting policy. The strong rainfall in 2024 played a crucial role in stabilising food prices, enabling recent rate the IMD projecting another strong monsoon in 2025 and global crude oil prices trending downward, SBI revised its inflation forecast for FY26 to around 3.5%, with a downward report also noted that rising household savings, as highlighted in the RBI's latest Annual Report, could comfortably support domestic investment without stoking demand-side the RBI gears up for its June 6 policy meet, potentially followed by another rate cut in August, the stage seems set for an easing cycle powered by favorable macroeconomic factors.
