ADBL stops lending to tea cultivators

Damak, August 25:

Agriculture Development Bank Ltd (ADBL) has stopped lending to tea cultivators in Jhapa. ADBL took the decision after the farmers — who took loan last year — had failed to pay back the loan. “Their interest has exceeded the principal amount,” ADBL Damak branch said.

According to Ramji Prasad Devkota, branch manager, “Rs 3,45,30,000 loan has crossed Rs 4,21,30,000 including interest but the farmers have not still paid back. Despite our continuous reminder, they have failed to pay ba-ck both principal amount and interest. So we stop-ped a new loan sanction.”

The branch has invested to about four dozens of tea cultivators in west Jhapa. According to the district agriculture development office, a total of 9,500 hectares of land in Jhapa covers tea cultivation.

According to Padam Prasad Shrestha, a horticulturist, “A total of 13 metric tonnes of green tea is produced in the district annually. Around 5,000 farmers have taken to this profession. According to the branch, total investment in only Jhapa this year till mid June has crossed Rs 29,29,56,000.