The devastating floods in Tripura have caused widespread damage, with the Animal Resource Development Department (ARDD) reporting losses amounting to Rs. 100 crore. The floods have severely impacted livestock, with approximately 3,000 cattle, 9,050 goats and pigs, and 1,000,000 poultry and ducks reported dead. Additionally, farm infrastructure in nine locations has been damaged.
Farmers in the state, many of whom rely on loans obtained through schemes like the Kisan Credit Card (KCC), are now struggling to repay their bank loans. The floods have made it nearly impossible for these farmers to meet their Equated Monthly Installments (EMIs), raising concerns about the financial burden on the agricultural community.
A source from the commercial banking sector has revealed that there are currently no specific guidelines for restructuring or deferring EMI payments for agricultural loans in the wake of natural disasters. The State Level Banker’s Committee (SLBC) is expected to take up this issue, given the massive financial losses faced by farmers.
Kiran Bhowmik, a PhD Scholar in Agricultural Economics and Research Associate with the Sixteenth Finance Commission, Tripura University, highlighted the urgent need for intervention. He emphasized that the economy of Tripura is heavily reliant on agriculture, and the current situation is dire for farmers. Bhowmik urged commercial banks to take proactive measures under the guidance of the Reserve Bank of India (RBI) to provide relief to affected farmers.
The Tripura government has announced several financial assistance packages to support farmers, but experts stress the importance of distributing aid based on independent surveys to ensure effective and fair distribution. As the situation unfolds, the role of commercial banks in implementing refinancing and loan restructuring systems will be crucial in mitigating the economic impact of the floods on Tripura’s agricultural community.
