Other States

Rajasthan farmers to get loans at 3% interest

State government acts to prevent distress sale of crops.

As part of the measures to prevent distress sale of crops during the lockdown, the Rajasthan government has approved a proposal for loans to farmers at the subsidised interest rate of 3% with their produce mortgaged.

It will also facilitate marketing and decentralised procurement of agricultural produce.

Chief Minister Ashok Gehlot said here on Saturday that the government would bear 7% interest on loans from the farmers’ welfare fund, while helping the farmers keep their yield intact.

₹50 crore grant

A grant of ₹50 crore will be given every year from the fund to the cooperative farmers’ welfare scheme.

The State was earlier bearing 2% interest. Under the scheme, farmers will be assessed on the basis of the market value or support price of their produce, whichever is less, and 70% of the assessed amount will be made available as a mortgage loan.

The loan amount has been capped at ₹1.50 lakh for small and marginal farmers and ₹3 lakh for big farmers. Mr. Gehlot said the farmers would get the loans for a period of 90 days, which might be extended to six months in special circumstances.

They would get the interest subsidy if they repaid the loan within the stipulated time.

Watch | Agricultural reforms through Atmanirbhar Bharat Abhiyan

The scheme would be put into operation through the village cooperative societies that were running in profit and had surplus resources, with their non-performing asset level being less than 10%.

The State also decided to restore the allotment of land plots on lease in mandi samitis after the cancellation because of failure to construct the buildings.

Besides, private warehouses were exempted from the payment of security deposit of ₹15 lakh for functioning as mandi sub-yards.

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Printable version | Jun 1, 2020 2:37:35 PM | https://www.thehindu.com/news/national/other-states/rajasthan-farmers-to-get-loans-at-3-interest/article31603879.ece

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