State Bank stop loans for farm machinery say tractor manufacturers
In a surprising and sudden move, State Bank of India has issued a circular stopping all loans for tractors and farm machinery with immediate effect. “This is bound to impact farm machinery sales, farm productivity and food grain production. SBI is the leading financier of the farm machinery business and this move during the peak agricultural season when farmers need these loans most, will adversely affect the agriculture and economic growth” said Mr L D Mittal, President Tractor Manufacturers Association (TMA)
Tractorisation and farm equipment are the key to productivity at the farm level to increase the disposable income level of the farmer. In a scenario of rising inflation particularly with respect to input costs to farmers and food prices, productivity is critical to income for the farmer and control on food prices. This move will adversely affect both, Mr Mittal added.
State Bank of India should reconsider its position urgently in this regard and find ways and means along with the farm equipment industry to create filters of customer quality, so that its own interests and that of the industry are well protected. In the meantime, it should keep the momentum of farm loans at the earlier level in the overall interest of the farming sector and the national economy
Mr. Mittal added that from the side of the tractor manufacturers and its dealers, all possible support will be extended to the banks so that the spirit of implementation of the budgetary proposals is kept, and the farm sector receives its due share of support and motivation for continued agricultural growth which is key to our GDP.
You must be logged in to post a comment.