Guwahati : Assam will launch three schemes for farmers, including a partial loan reimbursement programme and another that will make crop loans effectively interest-free, aiming to give a fillip to the flow of agricultural credit.
Guwahati : Assam will launch three schemes for farmers, including a partial loan reimbursement programme and another that will make crop loans effectively interest-free, aiming to give a fillip to the flow of agricultural credit.
These schemes together will cost Rs 1,000 crore to the state government, finance minister Himanta Biswa Sarma said on Wednesday.
Launching of these schemes has nothing to do with the Lok Sabha elections in 2019 or the recent announcements of a debt waiver by Madhya Pradesh and Rajasthan, Sarma said, adding: “We have announced in the state budget 2018-19 about these schemes.”
Assam has 27 lakh agricultural households spread across 26,000 villages which are covered by about 1,800 rural and semi-urban branches of commercial banks and regional rural banks. However, it is seen that in a majority of cases, the flow of much-needed short-term agricultural credit to the farmers is clogged, he said.
The state cabinet has approved the Assam Farmers’ Credit Subsidy Scheme (AFCSS), 2018, under which the government will reimburse 25% of the loans taken or repaid by farmers this financial year, with a limit of Rs 25,000. This scheme will cover 4 lakh farmers and involve a financial outgo of Rs 500 crore.
Another is the Assam Farmers’ Interest Relief Scheme (AFIRS), which will extend support to farmers who are prompt in repaying their loans, by providing a 4% interest subvention on short-term crop loans up to Rs 2 lakh. “This scheme will be aligned with the Government of India scheme under which prompt-paying farmers are extended a benefit on interest subvention of 3%. This effective rate of interest for a farmer in Assam accessing short-term crop loan up to a ceiling of Rs 2 lakh will be zero.”
This scheme will cost the government exchequer Rs 200 crore and benefit 11 lakh farmers, Sarma said.
The third is the Assam Farmers’ Incentive Scheme (AFIS). “Out of the 27 lakh agricultural households, only 19 lakh farm families are covered by Kisan Credit Cards (KCCs). Many KCCs are inoperative which is impairing the credit flow. Therefore, to open credit line, the state government will pay a one-time cash incentive up to Rs 10,000 for reactivating KCC accounts. This scheme will benefit 3 lakh farmers and will involve a financial outgo Rs 300 crore," the minister said.
These schemes are available also to small tea and rubber growers.
These measures will mean that farmers will remain with the banking system and there is nothing like debt waiver here, he said. “The BJP has won the recently held panchayat polls and it is our philosophy of rewarding the hardworking farmers. The idea is to institutionalise a credit culture that incentivises the prompt-paying farmers to pay their dues in time.”
These schemes together will cost Rs 1,000 crore to the state government, finance minister Himanta Biswa Sarma said on Wednesday.
Launching of these schemes has nothing to do with the Lok Sabha elections in 2019 or the recent announcements of a debt waiver by Madhya Pradesh and Rajasthan, Sarma said, adding: “We have announced in the state budget 2018-19 about these schemes.”
Assam has 27 lakh agricultural households spread across 26,000 villages which are covered by about 1,800 rural and semi-urban branches of commercial banks and regional rural banks. However, it is seen that in a majority of cases, the flow of much-needed short-term agricultural credit to the farmers is clogged, he said.
The state cabinet has approved the Assam Farmers’ Credit Subsidy Scheme (AFCSS), 2018, under which the government will reimburse 25% of the loans taken or repaid by farmers this financial year, with a limit of Rs 25,000. This scheme will cover 4 lakh farmers and involve a financial outgo of Rs 500 crore.
Another is the Assam Farmers’ Interest Relief Scheme (AFIRS), which will extend support to farmers who are prompt in repaying their loans, by providing a 4% interest subvention on short-term crop loans up to Rs 2 lakh. “This scheme will be aligned with the Government of India scheme under which prompt-paying farmers are extended a benefit on interest subvention of 3%. This effective rate of interest for a farmer in Assam accessing short-term crop loan up to a ceiling of Rs 2 lakh will be zero.”
This scheme will cost the government exchequer Rs 200 crore and benefit 11 lakh farmers, Sarma said.
The third is the Assam Farmers’ Incentive Scheme (AFIS). “Out of the 27 lakh agricultural households, only 19 lakh farm families are covered by Kisan Credit Cards (KCCs). Many KCCs are inoperative which is impairing the credit flow. Therefore, to open credit line, the state government will pay a one-time cash incentive up to Rs 10,000 for reactivating KCC accounts. This scheme will benefit 3 lakh farmers and will involve a financial outgo Rs 300 crore," the minister said.
These schemes are available also to small tea and rubber growers.
These measures will mean that farmers will remain with the banking system and there is nothing like debt waiver here, he said. “The BJP has won the recently held panchayat polls and it is our philosophy of rewarding the hardworking farmers. The idea is to institutionalise a credit culture that incentivises the prompt-paying farmers to pay their dues in time.”