RS. 21,000 CRORE LOAN WAIVER BRINGS FINANCIAL RELIEF TO 25 LAKH+ FARMERS

Rythu Runa Maafi

Shri A. Revanth Reddy
Chief Minister of Telangana

Safeguarding farmers' livelihoods

“Telangana became a role model by launching the farm loan waiver scheme up to Rs. 2 lakh for the first time in any state. Rythu Runa Mafi is our promise in action.”

Taking a remarkable step towards safeguarding the livelihoods of farmers and breaking the vicious cycle of agricultural debt, the Telangana government, under the pioneering leadership of Chief Minister Shri A. Revanth Reddy, launched the Rythu Runa Mafi (Crop Loan Waiver) scheme under the Rythu Bharosa umbrella.

Announced via G.O. Rt.No.567 dated July 15, 2024, the initiative aims to waive all kinds of crop loans up to Rs. 2 lakh, including principal and interest.

Helping the hands that feed people

Tailored for financially vulnerable farmers, the scheme would benefit eligible beneficiaries who are

  • Residents of Telangana
  • Actively engaged in farming
  • With loans availed between April 1, 2014, and December 2023

Led by the Chief Minister Shri A. Revanth Reddy, the Telangana government issued detailed guidelines for implementation of crop loan waiver, as follows

  • Waive loan up to Rs. 2 lakh, including both principal and interest, per farmer’s family.
  • All farmer families with outstanding crop loans up to the specified limit are eligible for the scheme.
  • For eligible families, the waiver amounts will be transferred directly into their loan accounts via “direct benefit transfer (DBT)” mode.

The waiver covers both short-term production loans and gold-backed crop loans from commercial, cooperative, and regional rural banks.

Phase-wise implementation

  • Phase I: Rs. 6,098 crore disbursed to nearly 11 lakh farmers (up to Rs. 1 lakh)
  • Phase II: Rs. 6,190 crore benefitted 6 lakh farmers (up to Rs. 1.5 lakh)
  • Phase III: Rs. 5,172 crore to over 5 lakh farmers (up to Rs. 2 lakh)
  • Phase IV: Rs. 2,747 crore to 3.10 lakh farmers

This landmark initiative is aimed at providing immediate financial relief to debt-stressed farmers in multiple ways:

  • Help them regain creditworthiness
  • Stabilise their livelihoods
  • Protect the agricultural sector
  • Aid farmers to break free from the recurring debt trap

Strong grievance redressal efforts addressing returned accounts and discrepancies to ensure loan waiver up to Rs 2 lakh per farmer, and partial interest support for larger amounts.

As of July 2024, payments worth Rs. 6,763 crore and Rs. 4,818 crore in subsequent phases expanded support to 18 lakh accounts. By December 2024, the cumulative waiver touched Rs. 21,000 crore, delivering relief to over 25 lakh farmers. The government has earmarked Rs. 35,000 crore for the full rollout.

Alongside monetary relief, grievance redressal cells at the mandal level ensure timely resolution of disputes and pending claims.

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