GUNTUR: In a harsh move to rein in the farmers of capital city area from going to cultivation, state government has decided to stop all facilities including the grant of agriculture loans and subsidies with immediate effect.

Farmers of 29 villages earmarked for the capital city area will not be entitled to get subsidized seeds, fertilisers and even tilling machinery that are supplied on subsidy.

Faced with trouble in imposing complete ban on agriculture activity in the area following the High Court directive, the state government choose to tie-up the arms of farmer through indirect mode by stopping grant of facilities related to the agriculture activities. However, the state government's decision to push the farmers into corner has ignited angers in many villages particularly from the riverbank area of the capital city.

The riverbank farmers questioning the rationale in the government's decision to restrict banks from granting the agriculture loans as they were yet to give their consent for the Land Pooling Scheme (LPS).

According to information, district level bankers committee chairman and district collector Kantilal Dande had asked the bankers in the district not to grant any fresh loans to the farmers in 29 villages from now onwards.

The District Cooperative Central Bank (DCCB) had also been asked to restrain from giving fresh loans to the farmers. In fact, the state government contemplated to impose ban on cultivation in the area even before the taking over the fields for the capital city construction two months ago.

It had stopped the release of fertilisers to the local primary agriculture cooperative societies in the middle of the rabi season leading to protests from the farmers.

Following a petition filed by the farmers of riverbank area, High Court recently asked the district administration not to intervene in the agriculture activities of the farmers. Taking the HC directive as relief, farmers, who gave their consent for LPS, too began fresh cultivation in January. Stung by the development, the officials of Capital Region Development Authority (CRDA) informed the state government that it would be difficult to take up the development of land if the farmers were continued with the agriculture operations.

In response, the state government decided to stop all the facilities including the grant of loans. "It is unconstitutional to stop grant of agriculture loans in all the villages. What would be the fate of farmers, who did not give their consent? Is government wanted them to hang up?" asked advocate Mallela Seshagiri Rao.

Confirming the ban on loans, DCCB chairman Mummaneni Venkata Subbaiah said that they would not release fresh funds to the capital city societies. He said that about Rs.2.7 crore due to the bank from the area would be waived off under agriculture debt relief programme.

Meanwhile, other bankers were anxiously waiting for the implementation of loan waiver scheme as they have to recover nearly Rs.300 crore from 29 villages.