Govt lines up 7K cr farm credit for Kharif crop

Bhubaneswar: The state government has set a target of distributing crop loans to the tune of `7,000 crore during 2017 Kharif season which commenced April 1.
The Cooperation department has decided to disburse the loan to the members of primary agriculture cooperative societies (PACS) at the time of their need, official sources said Tuesday.
The loan would be disbursed at concessional rate of interest of 4 per cent for a loan amount up to `50,000 and at 5 per cent for loan amounts between `50,001 and `3 lakh, sources said. For loans above `3 lakh, the banks would decide the rate of interest.
If the borrowers repay the loan on or before the due date, the government would provide interest incentive of 3 per cent to them.
This means the farmers have to pay only 1 per cent (up to `50,000) and 2 per cent (Rs 50,001 to `3 lakh) interest to the bank if the farmers redeem the loan before the due date.
According to the sources, there are 17 central cooperative banks (CCBs) functioning in the state.
The state had set a target of distributing `6,000-crore crop loan to farmers during the 2016 Kharif season. Of the amount, the banks have sanctioned `5303.83 crore to 16.49 lakh farmers. This year, the government has enhanced the target by another `1,000 crore to promote agricultural activities, they said.
Meanwhile, Cooperation Secretary Manoj Ahuja has advised the collectors for successful completion of Kharif season plan asking them to ensure hassle-free and timely disbursement of loans to the needy farmers.
The collectors have also been asked to ensure that the credit limits are set on the basis of land details of the farmers and the crops grown by them.
Stating that Pradhan Mantri Fasal Bima Yojana (PMFBY) will continue for this Kharif season too, Ahuja said the premium on all cereals, millets, pulses and oilseeds crops cultivated during this season has been fixed at 2 per cent of the sum insured or actuarial rate, whichever is less.
Similarly, for annual commercial and horticultural crops, the insurance premium has been fixed at 5 per cent of the sum insured or actuarial rate, whichever is less.
The government has asked the DCCBs to prepare action plan to cover the left-out agricultural families under cooperative credit network by issuing fresh Kisan Credit Cards and extending crop loans for their Kharif operations with special emphasis on small and marginal farmers.
Besides, the government has decided to extend short-term credit facility to self help groups (SHGs).

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