Odisha government disburses Rs 11,800 crore crop loan to 21 lakh farmers

The Government is providing crop loan at a concessional rate of interest of 4 per cent for loans up to Rs 50,000 and at 5 per cent for loan between Rs 50,001 and Rs 3 lakh.
Image for representational purpose. (File| EPS)
Image for representational purpose. (File| EPS)

BHUBANESWAR: The State Government has disbursed crop loan of about Rs 11,800 crore through different financial institutions benefiting 21 lakh farmers during this kharif season.Though the last date to avail kharif crop loan was September 3, the Government had allowed farmers to avail short-term farm credit till end of the month in view of disruptions due to the Covid-19 pandemic.

The cooperative credit structure has achieved 92 per cent of the crop loan target by disbursing Rs 8,321 crore to about 18.8 lakh farmers. The Government has set a revised target to disburse Rs 9,000 crore short-term seasonal agricultural loans to farmer members of the primary agriculture cooperative societies (PACS) during kharif season commencing on April 1. 

“We could achieve 92 per cent of the target despite many hurdles thrown by the pandemic. Apart from limited manpower at PACS level and poor internet connectivity in rural areas, integration of Bhulekh (land records) during farmers registration under Pradhan Mantri Fasal Bima Yojana (PMFBY) was stupendous job,” said a senior office of the Odisha State Cooperative Bank (OSCB).

Applications of about 25,000 loanee farmers for coverage under crop insurance could not be verified for online registration due to manpower shortage, technical snag and repeated calamities including flood, the sources added.The commercial banks and regional rural banks (RRBs) are reported to have provided crop loan to the tune of Rs 3,500 crore. 

“The short-term cooperative credit has been playing a pivotal role in disbursal of farm credit over the years and it has a share of around 68 per cent in crop loan dispensation. The cooperatives have touched nearly 70 per cent of the total loan disbursement,” the OSCB officer said. In kharif 2019, the cooperatives have disbursed Rs 7,330.56 crore to 17,91,898 farmers against a target of Rs 7,500 crore. 

The Government is providing crop loan at a concessional rate of interest of 4 per cent for loans up to Rs 50,000 and at 5 per cent for loan between Rs 50,001 and Rs 3 lakh.

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