Times of India reports a credit squeeze threatens to engulf the cooperative sector in Punjab as Nabard has imposed a cut of Rs. 1,700 crore on disbursal of advances to central cooperative banks in the state.
With less funds in their kitty, banks will not be able to give loans to a large number of farmers especially those who are new members of cooperative societies.
Nabard had advanced Rs 6,300 crore in the 2014-15 financial year to central cooperative banks in Punjab. However, Nabard has not explained why it has effected a hefty reduction advances to central cooperative banks for the fiscal 2015-16.
Farmer leaders including Bharatiya Kisan Union’s general secretary Sukhdev Singh Kokri have slammed the Nabard’s decision as anti-farmers. They said the decision might compel poor farmers into committing suicides.
The farmer leaders have also threatened to begun a struggle soon against the Nabard’s decision if enough credit is not given to farmers.