BHUBANESWAR: The cabinet on Friday sanctioned Rs 5,700 crore for five years to compensate losses sustained by the cooperative banks and primary agriculture cooperative societies (PACS) for lending crop loans at an interest rate as stipulated by the state government.
The state government is providing interest-free crop loans up to Rs 1 lakh since April 1, 2022. Similarly, for crop loans between Rs 1 and Rs 3 lakh, the interest rate is two per cent for prompt-paying farmers. Earlier, interest-free crop loan was being provided up to the limit of Rs 50,000 under Krushak Assistance for Livelihood and Income Augmentation (KALIA).
Sources said, owing to the schemes announced by the state government, 32.43 lakh small and marginal farmers availed crop loans from cooperative banks and PACS within Rs 1 lakh during 2022-23. The cooperative has achieved significant strides in crop loan dispensation from Rs 438.36 crore to 6.4 lakh farmers in 2000-01 to Rs 16,683.57 crore to 34.57 lakh farmers in 2022-23. At present the cooperative provides about 55 per cent of the total crop loans to the farmers as against the national average of 17 per cent.
Besides, the cabinet also approved a proposal to make a provision of Rs 500 crore for five years from 2023-24 to 2027-28 for the implementation of a price support scheme (PSS) by Odisha State Cooperative Marketing Federation Limited for procurement of oilseeds and pulses in the state on behalf of NAFED. The scheme has been introduced to support more than 1,500 PACS, LAMPCS, RMCs/FPOs/WSHGs reaching around one lakh farmers in the next five years to support beneficiaries and prevent distress sales.
The cabinet further approved an engineering, procurement, and construction (EPC) bid of Rs 103.45 crore of ABCI Infrastructure Private Limited for widening and strengthening of the Marshaghai-Jamboo road of 24.6 km in Kendrapara district. The work is targeted to be completed within 21 months.
The cabinet okayed the extension of the canal lining and system rehabilitation programme for five more years with an outlay of Rs 2,032.92 crore naming it ‘Mukhyamantri Canal Lining Yojana’. Under the programme, the ongoing 287 km of lining in major and medium irrigation projects and 24.58 km in minor irrigation projects will be taken up.