BHUBANESWAR: In a move to ensure timely availability of fertilisers and curb black marketing, the state government has approved a Rs 42-crore interest subvention scheme for expanding the role of cooperative institutions in fertiliser distribution.
Under the new scheme, the state government will provide 100 per cent interest subvention on cash credit loans availed by primary agriculture cooperative societies (PACS) and large-sized adivasi multi-purpose cooperative societies (LAMPCS) for advance procurement and stocking of fertilisers.
The interest subvention will ease the financial burden on the cooperatives, enabling them to pre-position fertilisers well ahead of peak agricultural season without incurring interest cost.
The scheme carries a total financial outlay of Rs 42 crore over five years, from 2026-27 to 2030-31, with an initial allocation of Rs 5 crore for the current financial year.
Around 2,700 grassroots cooperative societies across Odisha will benefit under the programme. Eligible PACS and LAMPCS will receive cash credit limits of up to Rs 10 lakh, depending on their operational capacity and fertiliser handling requirements.
To enhance transparency and accountability, the government will also promote QR code-based digital payments for fertiliser sales at cooperative outlets.
The government cleared the scheme following the recommendation of the standing finance committee (SFC) chaired by the Cooperation secretary Sachin Ramachandra Yadhav.
The government aims to increase the cooperative sector’s share in fertiliser distribution from the present 25-30 per cent to 60 per cent beginning with the 2026 kharif season. With southwest monsoon becoming active over the state and farmers starting preparation for paddy nursery beds, PACS and LAMPS have already pre-positioned fertilisers as per the instruction of the department.
Officials said the move will improve fertiliser availability at the grassroots while reducing illegal diversion and black marketing through private channels. The scheme will not strengthen the cooperative network but also guarantee that farmers receive essential agricultural inputs at government-notified prices, particularly during critical sowing periods, they added.
