The State government on Wednesday announced interest-free loans borrowed from market committees by pledging foodgrain stocks up to six months. The facility was earlier available for three months.
The government also relaxed the norm to mortgage land or other properties for crop loans from the committees up to Rs. 2 lakh. The farmers were earlier given loans without mortgage up to Rs. 50,000 and with mortgage up to Rs. 1 lakh. The limit of loans under the ‘Rythubandhu’ scheme was raised from Rs. 1 lakh to Rs. 2 lakh, Marketing Minister T. Harish Rao told a meeting of farmers here to discuss conditions at market yards.
He said the period for renewal of Rythubandhu cards to secure loans was extended from three to five years. Mr. Rao also said the government proposed to introduce e-tendering at market yards to eliminate middlemen and ensure better price to farmers for their produce. It will be taken up at 10 to 15 market yards every year. The system was introduced on a trial basis at Khammam but it met with resistance from traders. E-tendering ensured cashless transactions as they were done online and the money was directly credited to the bank account of farmers.
The government will construct godowns with a storage capacity of 500 tonnes and drying platforms at market yards where the volume of transactions was high. The stress on godown space resulted in prices going down, Mr. Rao added.
The government will also supply food at Rs. 10 and free mineral water on a trial basis at Bowenpally market yard. It will see that only farmers were appointed as directors at market yards. About 500 Indira Kranti Patham centres where foodgrains were traded will be developed with floodlights, toilets and other facilities.
Principal Secretary of Agriculture Poonam Malakondaiah was present.
