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Farmers Loan Interest Rate Is Zero

In the state that leads in the field of paddy production, the hardworking farmers have become real heroes of agriculture, for now they have the facility of zero per cent interest on agricultural loans from this financial year 2014-15 as per the budget announcement of Chief Minister Dr Raman Singh. Simultaneously, separate agricultural budget provisions, decreasing rates of interest on loans, and various grant schemes like free 7500 unit electricity for irrigation pumps of power upto 5 horse power, grant of Rs 75,000 per farmer for pump connections etc are also contributing to continuously increasing production of paddy in state. Like cherry on the cake, Raman Government has relieved the farmers from the burden of interest on agricultural loans. Farmers, who earlier feared the strike of drought, are now all happy as monsoons have begun to shower lavishly. The agriculture activities like sowing, plantation etc have started in full swing. Farmers are also enthusiastically taking benefit of the zero interest loan facility being provided at cooperative societies.


To provide zero interest agricultural loan facility to farmers, State Government’s Cooperatives Department has issued Interest Grant Rule 2014 on Cooperative Agriculture Loans. As per this rule, farmers associated to cooperative societies and banks are to provide facility of interest free short-term agricultural loan facility from April 1, 2014. As per the provisions, farmers practicing animal husbandry, fishery and gardening crops will also be entitled for this interest-free loan facility. Officials of Apex Bank State Headquarters informed today that farmers are to be provided interest-free loans for kharif crops from April 1, 2014 to September 30, 2014. As on July 31, more than 8 lakh farmers have availed this facility to take loans worth nearly Rs 1,889 crore 51 lakh from societies. In order to provide relief to farmers from increasing input cost of agriculture, state government led by Dr Singh has decreased the interest rates on agricultural loans for five times in last 10 years and at the sixth time, state government has reduced the interest to zero freeing the farmers from the burden of interest completely.


Officials informed that in first three years after state formation, the farmers had to pay 13-15 per cent interest on short-term agricultural loans provided by primary agriculture credit cooperative societies. In its first tenure itself, State Government led by Dr Raman Singh reduced the interest rate to 9 per cent in financial year 2004-05. Later, the interest rate was further decreased to 7 per cent in year 2006-07, 6 per cent in year 2007-08, three per cent from year 2008-09 to 2011-12 and 1 per cent from year 2012-13 to year 2013-14. And then in the 11th year i.e. in 2014-15, State Government has decided to provide interest free loan facility to the farmers.


This has doubled the joy and enthusiasm of farmers towards agricultural activities. State Government has set a target of distributing short-term agricultural loans worth Rs 2 thousand 450 crores in this kharif season. Till date, nearly 77.12 per cent of this target has been achieved.


According to the officials, till July 31 in this season, loans worth Rs 595.22 crore have been distributed from five cooperative societies of Raipur, Gariaband, Balodabazar-Bhatapara, Mahasamund and Dhamtari under District Cooperative Central Bank Raipur-Raipur. Likewise, from societies of Durg, Bemetara and Balod that are affiliated to District Cooperative Central Bank, loans worth Rs 404.82 crores have been distributed. In societies of Kabeerdham and Rajnandgaon affiliated to District Cooperative Central Bank, loans worth Rs 313.42 crores and in socities of Bilaspur, Mungeli, Janjgir-Champa, Korba and Pandariya branch which are affiliated to the same bank, loans worth Rs 377.20 crore have been distributed. In this duration, societies of Kondagaon, Bastar (Jagdalpur), Narayanpur, Kanker, Dantewada, Sukma and Bijapur that are affiliated to District Cooperative Central Bank Bastar (Jagdalpur) have distributed loans worth Rs 159.68 crore. Similarly, the societies of Sarguja, Balrampur-Ramanujganj, Surajpur and Koriya that are affiliated to District Cooperative Central Bank Sarguja have distributed loans worth Rs 83.26 crore. Societies of Jashpur and Raigarh district that are affiliated to District Cooperative Central Bank Raigarh have distributed short-term loans worth Rs 45.80 crores, at zero per cent interest. With decrease in interest rate, number of farmers availing agricultural loan facility also increased year after year. In year 2001-02 when interest rate was 13-15 per cent, nearly 3 lakh 96 thousand farmers had taken the total loan of Rs 152.42 crore only. In the first financial year 2004-05 of first tenure of Raman Government when the interest rate was decreased to 9 per cent, number of farmers taking loan from societies had increased to 5 lakh 57 thousand, who had taken loan worth nearly Rs 334.46 crore.


Likewise, when the interest rate was reduced to 3 per cent in year 2008-08, as many as 7 lakh 66 thousand farmers took loans worth Rs 787 crore. And in year 2009-10, 7 lakh 86 thousand farmers had taken loan of total Rs 946.46, while in year 2010-11 nearly 7 lakh 93 thousand farmers had taken loans worth Rs 1,117 crore, and in year 2011-12, about 8 lakh 57 thousand farmers had taken loans worth Rs 1,481 crores. Later, in year 2012-13 when the interest rate was decreased to 1 per cent, the number of farmers availing the loan facility increased to 9 lakh 47 thousand. At the same interest, more than 9.5 lakh farmers availed the loan facility during kharif season of last year and took loans worth Rs 2,163 crore.


According to officials, procurement of paddy at support price in societies is continuously increasing. In year 2007-08, nearly 31.51 lakh metric tons of paddy was procured in the cooperative societies of the state, against which farmers were paid Rs 2 thousand 390 crores. In year 2011-12, the quantity of paddy procured increased to nearly 59 lakh 73 thousand ton and farmers were paid nearly Rs 6 thousand 566 crores for the same. In year 2012-13, there was a record increase in paddy procurement that reached to 71 lakh 21 thousand ton.


Nearly 10 lakh farmers were paid around Rs 11 thousand crores, which include support price and bonus. In previous Kharif Marketing year 2013-14, cooperative societies of state procured around 75 lakh 41 thousand metric ton paddy, for which the farmers were paid nearly Rs 10 thousand crore. The process of bonus distribution at the rate of Rs 300 per quintal, on this paddy procured, has already commenced. Farmers will be provided bonus worth nearly Rs 2400 crore against the paddy procured. In this way, farmers have earned nearly Rs 12 thousand crore in year 2013-14.

05/08/2014
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