Telangana Seeks Crop Loan Relief for Drought-Hit Farmers

On 10 November 2026, the Telangana government asked banks to restructure and reschedule eligible farmers’ existing crop loans amid an El Niño-related rainfall deficit. At a State Level Bankers’ Committee meeting on Kharif 2026 drought relief, Deputy Chief Minister Mallu Bhatti Vikramarka also sought timely fresh credit for Rabi cultivation.

He asked banks to examine relief under applicable Reserve Bank of India guidelines and consider interest concessions where feasible. He said farmers affected by monsoon failure were struggling to repay loans.

Drought impact and credit measures

The government declared 365 mandals across 31 districts drought-affected; 111 were classified as severely affected. Agriculture Minister Tummala Nageswara Rao said low inflows into the Krishna and Godavari rivers had reduced reservoir storage, while an estimated one million to 1.5 million borewells had run dry. Vikramarka cited a record power demand of 20,018 MW on 16 October as evidence of efforts to save standing crops.

Nageswara Rao urged banks to meet the Rabi crop-loan target of ₹38,268 crore. The government is encouraging a shift to less water-intensive crops, which Vikramarka said needs adequate institutional credit, assured marketing arrangements and guidance on risks.

Important Facts for Exams

• ENSO phases: The El Niño–Southern Oscillation alternates irregularly among neutral, El Niño and La Niña phases, which involve linked oceanic and atmospheric conditions.
• Trade-wind mechanism: During El Niño, weaker-than-average trade winds reduce eastern Pacific upwelling and shift cloud and rainfall towards the eastern Pacific.
• Banking oversight: The Reserve Bank of India sets broad operating parameters for India’s banking system, a regulatory role relevant to banks’ administration of credit.