Odisha Govt Targets to Disburse Crop Loans of Rs 9500 Cr in Kharif-2023

Bhubaneswar: The Odisha Government is targeting to disburse crop loans of Rs 9500 croe in Kharif-2023.

Co-operation, Food Supplies & Consumer Welfare Minister Atanu Sabyasachi Nayak has instructed that thrust is to be given for providing credit to small and marginal farmers, tenant farmers, oral lessees, share croppers and women self-help groups, financing of pulses, oilseeds, potato and other remunerative cash crops are to be prioritised and taking expeditious steps to bring more & more farmers to the ambit of co-operative loan.

Agriculture is the main stay of 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 share croppers with small and fragmented land holdings. 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 insuring higher production and productivity leading to enhance farm income and provide livelihood support to the farm community. Co-operation dept. has been playing a pivotal role in providing them short term co-operative credit, according to an official rease.

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 back drop, the Co-operative Credit Structure (OSCB, DCCBs & PACS) should strive to achieve crop loans disbursement target of Rs. 9500 Crore for Kharif-2023 season. Meticulous planning and a well structured credit programme 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.

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. 1.04.2022 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.

All crop loans sanctioned must be credited 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. Any disbursement of loan in deviation will be considered illegal and the loan sanctioning/ disbursing authorities shall be responsible for such illegal loan disbursement. The PACS /FSCS /LAMPCS not doing such loan transactions online 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.

Crop loans sanctioned to farmers has a large interest subvention component. So valid AADHAR numbers of the beneficiary farmers linked to their KCC and the Loan/ 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. The DCCBs/PACs/LAMPS have to ensure this at the time of sanction & disbursement of loans. The DCCBs/ Divisional DRCSs/ CDAOs of the District are required to prepare action plan to cover the left-out agricultural families under cooperative credit network by issuing fresh Kisan Credit Cards and extending crop loans for their Kharif operations with emphasis on small and marginal farmers.

Priority should be given towards financing of 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. Farmer members should be sensitized to operate upon their credit limits as many times as they may require so that the credit limits sanctioned in their favour are properly utilized and the interest on the crop loan is kept at the minimum level. Productive utilization of the crop loans provided by the Cooperative Banks and Commercial Banks, supply of inputs like ferlilizers, pestcides and improved seed under the kind component(B-component) of the loans should be ensured. The PACS should be sensitized for preposition of fertilizers at the time of need of the farm families. MARKFED has been advised to take adequate steps for pre-positioning of adequate stocks of fertilizers at their godowns / depots at the District / Block level to facilitate supply of fertilizers to the PACS of the required varieties and quantities will in time. Government has provided a Corpus Fund of Rs.90 crore to the MARKFED to ensure timely positioning and supply fertilizers.

The Divisional DRCS District Agriculture Officers, Secretaries of the DCCBs and the Area Managers of MARKFED should prepare detailed programme for distribution of fertilizers to the loanee formers through the PACS. Cash sale for the non-loanee farmers in the PACS may also be allowed, in case of necessity. The Seeds Sale Centres of the PACS should be activated for supply of quality seeds provided by the Odisha State Seeds Corporation to loanee-farmers. The Agriculture Department will continue to directly credit the subsidy on the seeds to the farmers’ accounts during the current Kharif season.

Creation of assets through agriculture term loans like financing of tractor, powertiller, pump set, minor irrigation, farm mechanization, plantations / horticulture and allied agriculture activities like dairy, poultry and fisheries should be given due emphasis. 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 should conduct joint tours within their area to ensure that the crop loans are utilized for productive purposes and the term loans for creation/ development / acquisition of assets are not mis-utilized.

Principal Secretary, Co-operation Sanjeev Kumar Chadha has written to all collectors to take expeditious steps to ensure implementation of the Programme for Kharif2023 and financing Crop loans in right perspective in the interest of the farming community.

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