Farmers in Chhattisgarh have all the good reasons to thank the State Government if they are told about the history of how interest on short-term agricultural loans went consistently down to zero little over a decade in the State.
The Government reduced the interest rate on short-term agricultural loans five times during the past decade and at the sixth time recently, brought down the interest rate to zero while freeing farmers from the burden of interest completely.
Officials informed that during the first three years after the formation of Chhattisgarh, the farmers had to pay 13 to 15 per cent interest on short-term agricultural loans provided by primary agriculture credit cooperative societies.
In its first tenure itself, the State Government led by Chief Minister Raman Singh reduced the interest rate to 9 per cent during 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 (2014-15), State Government decided to provide interest free loan facility to the farmers.
The move has doubled the joy and enthusiasm of farmers towards agricultural activities.
The Government has set a target of distributing short-term agricultural loans worth `2,450 crores in this Kharif season. Till date, nearly 77.12 per cent of this target has been achieved.
Officials further informed that till July 31 this Kharif season, loans worth `595.22 crore have been distributed from five cooperative societies
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 `75,000 per farmer for pump connections etc are also contributing to continuously increasing production of paddy in the State.
Farmers, who earlier feared an impending drought, are now 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 linked 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 growing horticulture crops will also be entitled for this interest-free loan facility.
The officials of Apex Bank State headquarters informed 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 `1,889 crore 51 lakh from societies.