Latest news with #PrimaryAgriculturalCooperativeSocieties
New Indian Express
5 days ago
- Business
- New Indian Express
Farmers allege banks denying NOCs for PACS Kisan Credit Card loans
COIMBATORE: Farmers in Coimbatore are claiming that nationalised banks are refusing to issue No Objection Certificates (NOCs) required by Primary Agricultural Cooperative Societies (PACS) for obtaining Kisan Credit Card (KCC) loans. R Periyasamy, a farmer from Theethipalayam, Coimbatore, said, "As per a new circular issued by the cooperative societies on July 17, farmers who have already obtained a KCC loan from any nationalised bank are now required to get an NOC from the concerned branch manager. When I approached my bank in Thondamuthur Taluk, they denied the NOC, stating that I already have an existing KCC loan with them. Many farmers like me, who have KCC loans with nationalised banks, are unable to obtain these NOCs." S Palanisamy, district president of the Tamil Nadu Vivasayigal Sangam, said, "Cooperative societies offer a maximum of Rs 2 lakh at zero interest for a year, irrespective of the farmer's land area. This means a farmer cannot obtain more than this limit, even if they own over 10 acres. If a farmer cultivates bananas on one acre, for instance, they need a minimum of Rs 1.7 lakh as input cost. The KCC loan provided by PACS is simply not enough to cover expenses for all their land. Therefore, farmers resort to nationalised banks to obtain KCC loans under the interest subvention scheme, which offers an interest rate of 4%." Palanisamy further said,"No bank will offer an NOC until the concerned farmer closes their existing loan. Officials in PACS are merely stating they will offer a loan once they receive the NOC from the banks. This new norm appears to be a tactic by PACS to curtail farmers from obtaining loans from nationalised banks, thereby crippling them economically." He demanded that the cooperative societies revoke the order. When contacted, a senior official from the cooperative societies department said, "These norms have been implemented as per RBI guidelines. The objective is to prevent farmers from obtaining multiple KCC loans from various banks under the interest subvention scheme, as it offers a minimal interest rate. We have, however, received grievances from farmers regarding this issue, and we will bring it to the government's attention."
Hans India
19-07-2025
- Business
- Hans India
TN cooperative dept now seeks NOC from nationalised banks for PACS crop loans
Chennai: After facing widespread criticism over the mandatory CIBIL verification for crop loans, the Tamil Nadu Cooperative Department has introduced another controversial requirement for farmers seeking credit through Primary Agricultural Cooperative Societies (PACS). According to a recent directive, farmers must now obtain a No Objection Certificate (NOC) from a nationalised bank to be eligible for loans under the cooperative system. The new instruction, issued through a departmental circular, mandates that farmers secure a NOC from the branch manager of a nationalised bank located in their area or where they maintain an account. This directive comes in the wake of an earlier order dated May 26, which required all crop loans disbursed through Kisan Credit Cards to undergo CIBIL score verification. That move had already triggered sharp backlash from various farmer associations across the state. Esan Murugasamy, founder of the Tamilaga Vivasayigal Pathukappu Sangam, strongly criticised the department's decision, claiming it was yet another tactic to discourage farmers from approaching PACS. 'Whether it is a CIBIL score, a CIBIL report, or now a NOC, the burden on farmers is the same. These measures are driving them into the clutches of commercial banks and increasing their debt risk,' he said. Farmer groups argue that cooperative loans were originally designed to provide easy, affordable credit to small and marginal farmers, and these additional requirements defeat that purpose. They fear that the mounting bureaucratic hurdles will erode trust in PACS and force more farmers to turn to commercial lending institutions with higher interest rates and stricter repayment terms. However, senior officials in the Cooperative Department maintain that the process is being misrepresented and claim that it is simple and straightforward. 'A standard format letter will be given by the PACS. The farmer only needs to get it signed and sealed by a manager of a nationalised bank. This is just to ensure there are no overlapping loans,' an official explained. Despite the assurance, farmer organisations remain firm in their demand that such additional compliance steps be scrapped altogether. They argue that these measures are impractical for rural farmers and undermine the very purpose of cooperative credit. As discontent grows, farmer unions are planning to intensify their protests, urging the state government to withdraw the latest directive and restore easy access to cooperative loans without unnecessary hurdles.
New Indian Express
19-07-2025
- Business
- New Indian Express
Loan trouble: Co-op department asks farmers in Tamil Nadu to get NOC from bank
COIMBATORE: After drawing flak for mandating CIBIL checks for crop loans, the Tamil Nadu Cooperative Department has now directed farmers to obtain a No Objection Certificate (NOC) from a nationalised bank to access loans through Primary Agricultural Cooperative Societies (PACS). In a circular issued on July 17, the department instructed that farmers must now get a NOC from a manager of a nationalised bank in their locality or where they hold an account. The original order, issued on May 26, mandated that all crop loans disbursed through Kisan Credit Cards must undergo CIBIL verification. This move drew sharp criticism from farmer associations. Esan Murugasamy, founder of the Tamilaga Vivasayigal Pathukappu Sangam, alleged that the department was intentionally trying to push farmers away from PACS and into debt traps with commercial banks. 'Whether it's CIBIL score, CIBIL report, or a NOC, the burden on farmers remains the same,' he said. A senior official in the department, however, said the process was designed to be simple. 'PACS will provide a format letter. The farmer needs to get it signed and sealed by a nationalised bank manager,' the official said. Farmer organisations continue to demand that all additional checks be removed to ensure easy access to cooperative loans.
Time of India
18-07-2025
- Business
- Time of India
Fertilizers available, but ryots struggle amid staff apathy
Visakhapatnam: Although fertilizers are available in adequate quantities at the district level for this Kharif season, farmers are struggling to obtain them. Staff at Rythu Seva Kendras and other distribution centres have shown a lack of urgency, forcing many farmers to turn to private dealers — where they are compelled to buy fertilizers at steeply inflated prices. Even after the govt instructed the administrations in the district to provide fertilizers, the fertilizers are not within the reach of the farmers due to negligence in distributing them by the staff at the district level. There are allegations over the Rythu Seva Kendras. The district authorities are now supplying the fertilizers that have reached the Primary Agricultural Cooperative Societies from MarkFed. Sources say that the stocks at Rythu Seva Kendras have remained the same for the past few months. "The usage of Urea is high presently, and we have been searching for the stocks. There are no stocks at private dealers. Even if they have quantities, they have been enhancing the prices and cashing in on the situation," a farmer in Vizianagaram district, K Rama Rao, said. The higher officials in the agricultural department estimated the required quantity of Urea and other fertilizers and sent around 90% of the estimated quantities. The majority of Urea stocks are in Rythu Seva Kendras, sources said. They further added that the transfers of village agricultural assistants over the past month have been creating problems for the farmers, as VAAs are not distributing fertilizers and are also not inclined to hand over the stock details or register them. The authorities are attributing the delay in Urea distribution to the transfers of Village Agricultural Assistants. The Agricultural Department higher officials say that this will be resolved in seven to ten days. The district agricultural officers advised the farmers to bring any issues in fertilizer supply to their notice. The govt has sent sufficient quantities of fertilizers to districts. "When we ask about DAP, Potash, Super Phosphate, Complex fertilizers, and others, Agricultural Department officials say that those fertilizers are available. But, the local staff have been saying that technical issues have been creating problems," another farmer, Appala Naidu, said.
