BHUBANESWAR: The state government has set a target to disburse Rs 7,500 crore cooperative loans to the farmers during the 2019 kharif season through cooperative credit structures with the primary agriculture cooperative societies (PACS) being the last mile outlet for dispensation of agriculture credit.
The loan would be disbursed at concessional rate of interest of 4 per cent for a loan amount up to Rs 50,000 and at 5 per cent for loan amount between Rs 50,001 and Rs 3 lakh.
However, loan above Rs 3 lakh will be provided at commercial rate which will be decided by banks concerned.
In a bid encourage farmers for timely repayment of loan, the Government has decided to provide interest incentives of 4 per cent for loan up to Rs 50,000 and 3 per cent for loan up to Rs 3 lakh.
This means that borrowers having short term credit upto Rs 50,000 will not pay any interest, if they repay their loan on or before the due date.
For prompt paying farmers, the effective rate of interest for loan ranging from Rs 50,001 to Rs 3 lakh will be 2 per cent as against the concessional rate of 5 per cent.
“Since interest subvention is to be provided to commercial and regional rural banks, you are requested to ensure that these banks take immediate initiative to disburse crop loan to intending farmers as per the scale of finance fixed for the districts,” Cooperation Secretary Krishan Kumar wrote to district collectors.
The short-term cooperative credit has been playing a pivotal role in disbursal of farm credit over the years and a share of around 65 per cent in crop loan dispensation should be prepared for timely, adequate and hassle-free credit disbursal to farmers, he said.
With 17 district central cooperative banks (DCCBs) functioning in the State, the banks were asked to prepare action plan to cover left out farm families under cooperative credit networks by issuing fresh Kishan Credit Cards (KCCs). Thrust should be given for providing crop loan to small and marginal farmers.
“Short term credit facility needs to be extended to self-help groups (SHGs) including women groups, tenant farmers and oral lessees.
Adequate steps should be taken to cover maximum number of sharecroppers under crop financing through joint liability groups (JLGs). The PACS should be advised to dispense at least 10 per cent of the crop loan to JLGs,” the letter said.
As the Pradhan Mantri Fasal Bima Yojana (PMFBY) will continue this kharif season too, Kumar 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.