RAMANATHAPURAM: In view of handling the post-harvest loss, Ramanathapuram farmers can pledge their crops for availing loan from the agricultural marketing department at a 5% interest rate, advised District Collector Johny Tom Varghese while distributing the pledge loan amount to beneficiaries on Saturday.
The downtrend in market prices is one of the major problems faced by the farmers, which has led many to financial hardships. The increase in the availability of particular crops during the harvest season leads to such trends that are unfavourable to farmers. They are left with no other choice than to sell their produce at low prices immediately after the harvest due to the unavailability of storage space and financial needs.
The Marketing Committee operates six regulatory markets in the Ramanathapuram district. Farmers can benefit by selling their produce at these markets without commission and without middlemen. There are storage facilities provided for farmers to store their produce at a minimum daily rent of Rs 1 per 1 tonne. Farmers can store their produce at the storage facilities and pledge a loan of up to 50% to 75% of the total value of the produce and up to a maximum of Rs 3 lakh for six months at a 5% interest rate.
The storage facility in the Etivayal Integrated Chilli market and Paramakudi regulatory market are accredited by the Central Warehousing Development and Regulatory Authority (WDRA). Thus, the ceiling of loans is up to 75% of the value of the produce through banks.
Subsequently, 7,900 bags of paddy worth Rs 1,20,95,480 were purchased from private traders from farmers in the Ramanathapuram district. The company has kept paddy in the Etivayal storage facility and has pledged a loan of Rs 90,72,000. While distributing the loan cheques to the beneficiaries, the district collector advised the farmers to make use of the initiative to prevent post-harvest loss.