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TN cooperative dept now seeks NOC from nationalised banks for PACS crop loans
TN cooperative dept now seeks NOC from nationalised banks for PACS crop loans

Hans India

time5 days ago

  • 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.

Loan trouble: Co-op department asks farmers in Tamil Nadu to get NOC from bank
Loan trouble: Co-op department asks farmers in Tamil Nadu to get NOC from bank

New Indian Express

time5 days ago

  • 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.

Coconut price may zoom in TN as 28 lakh diseased trees face axe
Coconut price may zoom in TN as 28 lakh diseased trees face axe

New Indian Express

time13-05-2025

  • Health
  • New Indian Express

Coconut price may zoom in TN as 28 lakh diseased trees face axe

COIMBATORE: Coconut farmers in Coimbatore district have been caught in an existential crisis as 28 lakh coconut trees spread across 40,000 acres in the district may have to be felled in the next two years due to Kerala root wilt disease infestation. While the price of coconut has increased from Rs 18-Rs 19/kg in 2023 to Rs 55/kg now, a record three-fold jump in two years, due to the fall in cultivation area because of felling of trees, the cutting exercise too has cast a huge financial burden on farmers. Currently, the government provides a compensation of Rs 32,000/hectare for cutting and replanting trees but the actual cost of the exercise is Rs 12.5 lakh per hectare (almost 40 times more), say farmers. It will also take at least three to five years for the crops to start producing yield. 'Spread across 12 lakh acres in 29 districts, Tamil Nadu has the second largest area under coconut cultivation in India after Karnataka. The total crop area in Coimbatore alone is 2.10 lakh acres. Coconut is the second largest oil crop after groundnut in TN,' said Esan Murugasamy, founder of Tamilaga Vivasayigal Pathukappu Sangam. Coconut yield fell in TN by 60% due to root wilt 'But the state has been badly hit because of the rapid spread of the Kerala wilt disease since 2019. As there are no preventive measures to control the disease, the infection caused by a phytoplasma has been ravaging acres of coconut farms in the state,' added Esan Murugasamy. 'The disease has been successfully eradicated in Kerala where it started but in TN, the horticulture department has not taken any concerted effort. For the last six years, the researchers of the TN Agricultural University have been wasting their time by continuously taking government funds without coming up with proper remedial measures.

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