Reported by Chinmaya Dehury/Edited by Sandeep Sahu
Bhubaneswar, Sep 23:
As part of its efforts to enhance the production capacity in the fishery and dairy farm sectors, the state government today issued notification for providing interest subvention support to cooperative and commercial banks to enable them to finance crop loans to the farmers of the state at 7% interest rate.
It was earlier announced in the agriculture budget presented before the state Assembly in February this year.
“The state government will provide interest subvention/subsidy of 3% on long term loans up to Rs 10 lakh. Besides, the government will provide an additional subvention of 2% on interest to the farmers for quick and prompt repayment,” Finance minister Prasanna Acharya told media persons here.
Farmers availing short term loan up to Rs 3 lakh will get subvention of 5% on interest of loan and in case of prompt repayment, they will get another 3% subvention totalling 8% on interest, the minister said.
Fish farmers availing short term loan under KCC for inland fish farming and regular in repayment would be charged 4% interest rate with interest subventions by state government.
The banks are providing loans to farmers at 12% interest. The government has budgeted Rs. 8 crore for benefiting about 12, 000 fish farmers in the financial year.
Fish farmers used to take term loans from banks for pond development in fresh water, brackish water, net and boat, fish seed hatchery and other activities towards assets creation through ongoing schemes like FFDA, NFDB and NMPS.