Interest subvention for farmers to continue, Centre to TN

Finance Minister Arun Jaitley has informed the Tamil Nadu Government that interest subsidy will continue to be provided for short term crop loans till March 2016, as per the present Interest Subvention Scheme (ISC).
Against the backdrop of the Centre's proposal to overhaul the ISC, Chief Minister Jayalalithaa had written to Prime Minister Narendra Modi, drawing his attention to several issues over it.
She had sought continuation of the present scheme and advocated more benefits for farmers in new proposals and wide ranging consultations with stake holders in NITI Aayog.
"The Union Finance Minister in a letter has said that interest subsidy will continue to be given for short term crop loans till March 2016 as per the present Interest Subvention Scheme," an official release said here today.

"He has also informed that the (Union) Cabinet has decided to set up a panel under the aegis of the Agriculture Ministry and it will recommend (ways for) optimal utilisation of financial resources under the ISC besides improvising on loans for small farmers," it said.
The release claimed that farmers across the country were benefited due to Jayalalithaa's efforts.
During 2014-15, crop loans to the tune of Rs 5,279.91 crore were disbursed through cooperative banks in Tamil Nadu exceeding the target of Rs 5,000 crore for 10,36,859 farmers.
For the current year, it has been decided to extend Rs 5,500 crore crop loan for 10,75,000 farmers.