Cheap loans for buying tractors

Co-operative banks in Uttaranchal would extend loans to farmers for buying tractors and power tillers at a nominal interest rate of 5.5 per cent, official sources said here today.

Earlier, the interest rate for buying tractors and power tillers was 9 per cent. The government will provide a 4 per cent subsidy in this regard.

An indication to this effect had been given by Chief Minister N D Tiwari during his tour to the Kumaon region. He said he had been considering the scheme to provide loans at nominal rates, and necessary instructions to the administration had been issued.

"We have issued an order in this regard," Co-operative Secretary N C Sharma said. Besides this, all the 10 district co-operative banks as well as the State Cooperative Bank will extend loans at 5 per cent to small farmers. Farmers can avail themselves of small loans at 5 per cent with an upper limit of Rs 50,000 only, Sharma said.

Meanwhile, the government is also contemplating providing more sops to farmers that include reasonably acceptable minimum support prices for sugar.