Home Co-operation 9500 CR Crop Loan Target

9500 CR Crop Loan Target

Bhubaneswar: Odisha Government in Department of Co-operation has set an ambitious target to disburse crop loans of Rs 9500 crore during Kharif-2023.

Principal Secretary, Co-operation, Sanjeev Kumar Chadha has written to all District Collectors to take expeditious steps to ensure implementation of the Program for Kharif-2023 and financing crop loans in right perspective in the interest of the farming community.

Agriculture is the mainstay of the State’s economy. Over 60% of the population of the State depends on agriculture for their livelihood support.

Our farming community comprises predominantly small and marginal farmers, tenant farmers, oral lessees and sharecroppers with small and fragmented land holdings, Shri Chadha said.

They need to be provided with institutional financial support for their agricultural operations. Hence, provision of timely, adequate and hassle free credit support to farmers is critical for development of agriculture in the State and thereby ensuring higher production and productivity leading to enhance farm income and provide livelihood support to the farm community, he said.

In this regard, the Co-operation Department has been playing a pivotal role in providing them short term co-operative credit. The Short Term Cooperative Credit Structure (OSCB, DCCBs & PACS)  having a major share in crop loan dispensation in the State is mandated to ensure provision of timely credit through PACS as per requirement of the farm families of the State.

During last Kharif 2022 season, the Cooperatives have disbursed crop loans of Rs. 8710.78 crore to 18,00,999 farmers against the target of Rs.9000 crore which is an all-time high.

During Rabi 2022-23 season, as on 29.03.2023, the Cooperatives have disbursed an amount of Rs.7812.22 crore loans to 16,23,790 for cultivation of Rabi crops.

In this backdrop, the Co-operative Credit Structure (OSCB, DCCBs & PACS) should strive to achieve crop loans disbursement target of Rs.9500 crore for Kharif-2023 season, he directed.

“Meticulous planning and a well-structured credit program is required to be drawn up for provision of crop loans to farmer- members of joint liability Groups (JLGs) and BALARAM scheme in order to cater to their credit needs,” instructed the Principal Secretary Shri Chadha.

The State Government has decided for disbursement of Crop loan to the farmers at 0% (zero)rate of interest up to Rs.1 lakh from Cooperative Banks/ PACS, Commercial and Regional Rural Banks in the State w.e.f. April 1, 2022, by providing interest subvention to the Banks. In respect of crop loans above Rs.1 lakh to Rs.3 lakh, the effective rate of interest will be 2% for prompt paying farmers.

Shri Chadha asked the Collectors to credit the sanctioned crop loans directly to savings bank accounts of the farmers held with the banks. The PACS/FSCS/LAMPCS are allowed to sanction and disburse Short-Term Agricultural Loans through online mode only, he said.

Any disbursement of loan in deviation will be considered illegal and the loan sanctioning/ disbursing authorities shall be responsible for such illegal loan disbursement, he warned.

The cooperative body, which had not sanctioned such loan transactions on online mode, will not be eligible to get refinance for Kharif-2023. Refinance facility to them will be restored only when they come to the online platform and sanction credit through online mode, informed the Principal Secretary Shri Chadha.

Crop loans sanctioned to farmers have a large interest subvention component. So valid AADHAR numbers of the beneficiary farmers linked to their KCC and the Savings Bank Accounts opened in the District Central Cooperative Banks/ PACS/ Commercial Banks/ RRBs so as to ensure that genuine farmers have access to the subsidized crop loans disbursed through Banks.

Priority should be given towards financing pulses, oilseeds, potato and other remunerative cash crops. Financing of remunerative commercial crops and seasonal horticultural crops for which market is readily available should be given priority and a special drive may be taken for the purpose, he further stated.

Government has provided a Corpus Fund of Rs.90 crore to the MARKFED to ensure timely positioning and supply of fertilizers. The divisional DRCS, District Agriculture Officers, Secretaries of the DCCBs and the Area Managers of MARKFED should prepare a detailed program for distribution of fertilizers to the loanee farmers through the PACS. Cash sale for the non-loanee farmers in the PACS may also be allowed, in case of necessity.

Shri Chadha also asked the officials to give emphasis on creation of assets through agriculture term loans like financing of tractor, power tiller, pump set, minor irrigation, farm mechanization, plantations/ horticulture and allied agriculture activities like dairy, poultry and fisheries.

The Banks should continue to keep close coordination with other line Departments so that farmers can take the advantage of the welfare schemes and interest subvention meant for the Agricultural Term Loans from the Government.

The Field Officers of Agriculture Department (including Horticulture) and Cooperation Department and Secretary of DCCBs have been asked to conduct joint tours within their area to ensure that the crop loans are utilized for productive purposes and the term loans for creation and acquisition of assets are not mis-utilized