Andhra Pradesh tenant farmers demand easier access to crop loans

Tenant farmers across Andhra Pradesh have intensified calls for improved access to unsecured crop loans as part of broader efforts to address agricultural credit constraints in the state. The farmer collectives are seeking loans up to ₹2 lakh to cover cultivation costs for the upcoming season.

According to farmer representatives, members of Resource Management Groups (RMGs) and Joint Liability Groups (JLGs) are facing systematic delays in loan approvals and disbursements. The groups contend that financial institutions are not adhering to the Scale of Finance—the standardised lending framework that determines the maximum loan amount farmers can access based on crop type, land holding size, and agricultural practices.

The Scale of Finance is designed to ensure fair allocation of credit based on crop requirements and farmer classifications. Officials and farmer advocates argue that the current disbursement bottlenecks are preventing timely access to working capital, forcing many tenant farmers to rely on informal credit sources at higher interest rates.

The issue has become increasingly pressing given the critical importance of crop loans for smallholder and marginal farmers who dominate Andhra Pradesh's agricultural sector. Tenant farmers, who often operate on leased land without formal ownership documents, face additional barriers in accessing institutional credit.

State agricultural officials have not yet issued a formal response to the demands. The situation underscores ongoing challenges in delivering agricultural finance equitably across India's farming communities.