Naveen announces Rs 6,000 cr low cost loan scheme for farmers

Of the total amount, Rs 3,500 cr will be disbursed in the khariff season and another Rs 2,500 cr during rabi plantation

Naveen Patnaik-led Biju Janata Dal (BJD) government on Monday announced to provide Rs 6,000 crore loan to the farmers at two percent interest rate through co-operative societies.

This comes close on the heels of earlier scheme to provide free mobile handsets and health insurance to farmers, marking the overdrive by the ruling dispension to woo a prominent section of voters in the run up to the elections.

"We have made provisions to disburse around Rs 6,000 crore as farm loans through co-operative societies at two per cent interest rate per year," said Vikram Keshari Arukh, state minister for co-operation after a high level meeting.

Of the total amount, Rs 3,500 crore will be disbursed in the khariff season and another Rs 2,500 crore during rabi plantation, he added.

Last year, the state had provided Rs 5,150 crore farm loan with an interest rate of 5 per cent per annum.

As per the decisions taken by a cabinet committee, all branches of the state and central co-operative banks will disburse loans to the farmers for purchase seeds and other necessary equipments.

Meanwhile, chief minister Naveen Patnaik has directed the state co-operation department to take steps to ensure higher production and procurement of paddy crop.

"Apart from providing loans, the co-operative societies will have to establish yards for harvest and storage of paddy," Arukh said.

Under the farm produce marketing infrastructure plan, the co-operative societies will have to build 215 godowns having 1,000 tonne storing capacities in paddy growing areas. The plan, which will cost the state exchequer Rs 298 crore for 2013-14, will also have provision for construction of farmers' rest shed, paddy auction centre and information centre along with building of roads to the marketing area.