BHUBANESWAR: The state government has set a crop loan disbursement target of Rs 11,000 crore for the short-term cooperative credit structures in the ensuing kharif season-2025 as against Rs 10,185 crore provided to 18.86 lakh farmers in the last season.
The short-term cooperative credit has been playing a pivotal role in disbursal of farm credit over the years with a share of around 48 per cent in crop loan dispensation, the primary agriculture credit societies (PACS) being the last-mile lenders to the farmers.
In case of commercial banks and regional rural banks (RRBs), crop loan target will given separately by the State Level Bankers Committee (SLBC).
Crop loans will be made available to the farmer-members of PACS at the concessional rate of interest of four per cent per annum to the borrowers availing loans up to Rs 1 lakh and at five per cent interest for borrowing above Rs 1 lakh up to Rs 3 lakh for which interest subvention is provided by the government. The effective rate of interest for crop loan up to Rs 1 lakh is nil for the prompt paying farmers.
In a letter to all district collectors, the Cooperation department has directed to ensure that genuine farmers have access to the subsidised crop loans disbursed through district central cooperative banks (DCCBs), PACS and LAMPS.
“All crop loans sanctioned must be credited directly to savings bank accounts of the farmers. Any disbursement of loan in deviation of these instructions will be considered illegal and the loan sanctioning, disbursing authorities will be responsible for such,” said the letter issued by Cooperation secretary Rajesh Patil.
Meanwhile, the state-level technical committee (SLTC) has finalised the scale of finance for different crops and allied agricultural activities and the same has been circulated to all cooperative banks, commercial and regional banks.
Pradhan Mantri Fasal Bima Yojana will continue in kharif-2025 crop season as per the operational modalities approved to be approved by the state government. All the farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage, the letter said.