Odisha govt announces agri loan at two per cent interest

Carrying forward its populist measures ahead of the next elections, the Odisha government today announced sanction of agriculture loan at the rate of only two per cent interest to farmers.
The state government also decided to sanction agriculture loan to the tune of Rs 6,000 crore for the kharif and rabi crops this year.
The decision in this regard was taken at a high-level meeting presided over by Chief Minister Naveen Patnaik here.
While the farmers will be provided a loan of Rs 3,500 crore during kharif-2013, the cultivators could take loan upto Rs 2,500 crore during rabi crops of the year, Rural Development minister B K Arukh said.

Last year, the state government had sanctioned Rs 5,150 core agriculture loan at 5 per cent interest rate to the farmers, he said.
"The farmers across the state can avail the loan facility at an interest of only two per cent and the Chief Minister has instructed the Co-operation Department to publicise the scheme," he said.

The meeting decided to set up paddy procurement centres at panchayat level through regulated market committees (RMCs) where the yield recorded substantial increase from the last season.
The state government also decided to link branches of the state and Central Co-operative banks with core banking system.

The minister said the state government would take steps to set up paddy yards for proper procurement of grain at high yielding districts.