MADURAI: Amid the increase in the ceiling on pledge loans to Rs 5 lakh in the Budget for 2024-25, the agri-marketing department has started spreading awareness among farmers in the district on utilising pledge loans to tackle post-harvest loss.
One of the primary reasons behind post-harvest loss is a fall in market prices, which is a result of an increase in availability of the seasonal crops. Lack of storage facilities and financial stress compels farmers to sell their crops at lower prices, thereby reducing their chances of generating profit.
In a bid to aid farmers, the agri-marketing department has asked them to store their crops in regulated market facilities for 180 days, on a rent of five paise/quintal a day. Storage cost for the first 15 days is free. In case farmers are in need of financial assistance, they can pledge their crops for more than 180 days at the units, and can avail of a loan that is 75% of the produce for small farmers, and 50% for big farmers.
The recent agriculture budget highlighted that pledge loans can help farmers avoid distress sale during harvest season glut, and they can store their produce in the regulated market godowns. The pledge loan limit for farmers will be hiked from Rs 3 lakh to Rs 5 lakh, said the budget
According to the agri-marketing department, over 11 months till February 59 farmers in Madurai have pledged their crops to avail of loans worth a sum of Rs 133.295 lakh from the department. Farmers can repay the loan with 5% interest and recover their crops, which can be sold for higher. With the harvest season having commenced, the department has requested farmers to opt for the storage facilities and the pledge loan schemes.