Reduction in interest rates of short-term agricultural loans have yielded promising results in rural areas of Chhattisgarh.
With each passing year, there has been a steep rise in the number of farmers availing the short-term agricultural loan facility at nominal rate of 1 per cent in Primary Agricultural Credit Societies affiliated to District Cooperative Central Banks. Till July 6, agricultural loan distribution of nearly Rs 1,257 crores was recorded. Within just two days, this figure escalated significantly reaching Rs 1,316.47 crores on July 8, as per the records. This amount is about Rs 381 crores more than the amount of loans distributed last year in the same duration.
Officials of Chhattisgarh State Cooperative Bank (Apex Bank) informed today that this is consecutive second year when farmers are being distributed short-term agricultural loans at only 1 per cent interest, as per the announcement of Chief Minister Raman Singh.
State Government has the target of distributing loans of at least Rs 3,000 crores to the farmers at the interest rate of 1 per cent, in the current financial year. loans worth Rs 2,300 crore are to be distributed during Kharif Season and loans worth Rs 700 crores are to be distributed during Rabi season.
In last one decade, State Government has constantly reduced the interest rate on agricultural loans, in the larger interest of farmers. According to Chief Minister, the interest rate on agricultural loans has been reduced in the wake of increasing agricultural input cost, so as to relieve the farmers of the financial burden to a certain extent. The annual rate of interest that the farmers had to bear on agricultural loans from year 2001-02 to year 2003-04 was around 13-15 per cent. State Government led by Dr Raman Singh reduced this rate of interest to 9 per cent in year 2004-05, then to 7 per cent in year 2006-07, and later it was reduced to 6 per cent in year 2007-08. likewise, the annual rate of interest on agricultural loans was further rolled back to 3 per cent in year 2008-09, and this rate remained applicable till year 2010-11.
Thereafter, as per the announcement of Chief Minister, the short-term agricultural loan facility was made available to farmers of State at just 1 per cent interest, which is applicable in present also.
The reduced rate of interest has further boosted the confidence of farmers in Chhattisgarh. Striking example of the same is that when the rate of interest was 13-15 per cent in year 2001-02, only 3.96 lakh farmers had taken loans worth Rs 152.42 crores only from the cooperative societies. But with gradual decrease in the rate of interest, the number of farmers availing agricultural loan facility from cooperative societies has increased to 9.45 lakh and the amount distributed as loan at per cent has reached Rs 1651 crores.
Officials of Apex Bank informed that the distribution of short-term agricultural loans for Kharif crops goes on from April 1 to September 30. In the current Kharif season till July 8, Rs 1316.47 crores have been distributed as agricultural loans i.e. Rs 845.87 crores as cash and Rs 470.60 crores in form of seeds, fertilisers etc.
Meanwhile out of the total loans distributed, loans worth Rs 107.82 lakh were have been distributed in Baloda Bazar-Bhatapara district, Rs 87.83 crores in Raipur district, about Rs 34.25 crores in Gariaband district, Rs 73.59 crore in Mahasamund district, Rs 44.74 crore in Dhamtari district, Rs 77.24 crore Durg district, Rs 101.23 crore in Bemetara district, Rs 93.69 crore in Balod district, Rs 151.87 crore in Rajnandgaon district, Rs 97.68 crore in Kabeerdham district, Rs 37.72 crore in Bastar (Jagdalpur) district, Rs 21.50 crore in Kondagaon district, about Rs 1.98 crore in Narayanpur district, Rs 44.46 crore in North Bastar (Kanker) district, Rs 68 lakh in South Bastar (Dantewada district), Rs 1.07 crore in Sukma district, and Rs 1.56 crores have been distributed as loans in Bijapur district.
Officials further informed that in the same duration, agricultural loans worth Rs 81.72 crores were distributed in Bilaspur district, Rs 40.72 crore in Mungeli district, Rs 75.02 crore in Janjgir- Champa district, Rs 19.18 crores in Korba district, worth Rs 41.30 crore in Pandariya branch of District Cooperative Central Bank, Rs 21.68 crores in Sarguja district, Rs 7.61 crore in Balrampur- Ramanujganj district, Rs 12.35 crores in Surajpur district and Rs 8.45 crore in Koriya district, Rs 26.65 crore in Raigarh district and loans worth Rs 2.88 crore have been distributed in Jashpur district.