Farmers plan large-scale participation in hunger strike on July 10 in Chennai opposing system of crop loans based on CIBIL report
According to the leaders of the farmers' organisations, 80 per cent of the farmers are unable to secure crop loans and financial assistance for livestock rearing from cooperative societies due to the insistence on CIBIL report.
According to Eesan Murugasamy, founder, Tamil Nadu Farmers' Protection Association, the circular issued by the Cooperative Department on May 26 stating that the CIBIL report would be checked for farmers seeking crop loans from cooperative societies had to be withdrawn.
Farmers across Tamil Nadu are facing severe difficulty in getting crop loans from cooperative societies, also because of the pre-condition that they must not have availed themselves of loans earlier from nationalised banks.
The cost of cultivation being higher in Tamil Nadu when compared to other States, the farmers are left with no option but to get loans from the Cooperative banks as well as nationalised banks to cover the entire expenses.
Due to the unfavourable conditions, farmers who had taken loans in the past have not been able to repay the dues in time. The inability to repay education loans and crop loans had inevitably lowered their CIBIL score.
The farmers have conveyed to the government that they decided to sustain their protests beyond July 10 if a solution was not found.
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