Tenant Farmers in A.P. Allege Crop Loan SOP Breaches RBI Guidelines

Rapid Summary

• The Andhra Pradesh Tenant farmers’ Association has called for the withdrawal of a ‘Standard Operating Procedure’ (SOP) issued by the State Level Bankers’ Committee (SLBC).
• The SOP allegedly violates Reserve Bank of India (RBI) guidelines by requiring tenant farmers to meet conditions tied to their landowners’ financial standing before accessing crop loans.
• As per RBI norms,tenant farmers are eligible for crop loans up to ₹2 lakh without collateral.
• In Harivanam village of Adoni mandal, Kurnool district, only 4 out of 57 tenant farmers with valid identity cards received crop loans due to their landowners having pending dues.
• Tenant Farmers’ Association leaders argue that denying loans based on landowner borrowings is unjust and urge the government to introduce a comprehensive Tenant Farmers’ Act during the upcoming Monsoon Session.

Indian Opinion Analysis

The issue raised by the andhra Pradesh Tenant Farmers’ Association underscores a critical gap in implementing RBI guidelines at local administrative levels.By making loan access contingent on landowner dues,thousands of tenant farmers face systemic exclusions despite technically qualifying under national policies. this could have broader implications for agricultural productivity and income stability in rural areas.

Additionally, calls for introducing a comprehensive Tenant farmers’ act highlight an urgent need for legal safeguards that address this structural inequality and align state-level operations with RBI norms. If resolved effectively during legislative discourse in the Monsoon Session, it could set an example for other states grappling with similar challenges faced by tenants versus owners in India’s agriculture-dependent economy.for further details: Read more