Bengal co-op bank seeks refinance

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Mecheda, Jul 19: With a good monsoon expected to push up demand for crop loans by over 50% this kharif over the same period of 2007, the West Bengal State Co-operative Bank is looking for refinancing from the Centre as its funds have been depleted by the loan waiver scheme.

"We have asked the Central government to reimburse the co-operative sector by early September to meet the additional demand for crop loan during the kharif season," said Samir Kumar Ghosh, chairman of the West Bengal State Co-operative Bank Ltd (WBSCB).

"This year, we expect a fresh demand of Rs 1,450 crore for the crop loan against Rs 950 crore last year," said Ghosh.

Of the 12 lakh farmers here eligible for full relief under the Union government's debt waiver scheme, 6.50 lakh are under the WBSCB.So far, the WBSCB has waived crop loans adding up Rs 580 crore, covering 6.42 lakh farmers, in line with the Agriculture Debt Waiver and Debt Relief Scheme-2008.

Ghosh said that, after the announcement of the scheme, crop loan recoveries have come down to 56.11% in 2008-09 from 70.76% in the previous year.

"We had expected the recovery to rise to 80% this year," he said.

The WBSCB has disbursed crop loans worth Rs 946.31 crore in 2007-08 to around nine lakh farmers.

Disbursements of kharif crop loans have begun, and demand is likely to go up to Rs 750 crore during the season against Rs 406 crore last year. Overall demand for crop and agriculture related loan is expected to increase to Rs 2,250 crore against Rs 1,600 crore last year.

"We need the centre's assistance to meet the additional demand during the season," he said.