Agri Credit Latest News

Maharashtra wants to bring back 2% interest subvention scheme for farmers

"Maharashtra wants to bring back 2% interest subvention scheme for farmers"
Wikipedia

Maharashtra wants to bring back a 2% interest subvention scheme for farmers

A resolution calling for the reinstatement of a two percent interest subvention was passed and accepted by the State level Bankers’ Committee during a meeting that took place in Mumbai in the presence of the Chief Minister of Maharashtra, Uddhav Thackeray.

Thackeray wrote a letter to Agriculture Minister Narendra Singh Tomar in which he stated that a circular that had been issued earlier this year by the farm ministry and Nabard (National Bank for Agriculture and Rural Development) stated that the 2% interest subvention scheme for short-term crop loans had been modified and that the subsidy would not be available from fiscal 2022-2023. Thackeray’s statement was made in reference to a circular that had been issued earlier this year.

The Chief Minister wrote in the letter that the discontinuation of the scheme ‘will have an adverse impact on the financial position of cooperative banks and, in turn, will have a serious negative impact on the distribution of short-term crop loans to farmers in the state.’ This refers to the fact that the scheme will no longer be available.

Also Read | Maharashtra introduces three Farm Bills in response to Center’s new farm laws.

According to Thackeray, the two percent interest subvention or subsidy that was made available to cooperative as well as nationalized banks as part of the scheme had made it possible for these lending institutions to grant short-term crop loans to farmers at concessional rates.

Credit Arrangement

The Bankers’ Committee also gave its approval to a loan plan for ₹ 26 lakh 33,000 crore, which is greater by 45.37 percent than the plan for the previous year. A total of 1,002,600 billion rupees have been allotted to the agriculture sector, of which 64 billion rupees will be used to finance crop loans.

Because the monsoon season is about to start, according to Thackeray, banks ought to make loans available to farmers.

(with inputs from PTI)