After a concessional rate of interest on crop loans, farmers can now expect to avail of the same for post-harvest management as well. The food ministry has raised the issue with the finance ministry for extending the four per cent rate on crop loans.
“I have already taken up the issue with the finance ministry and am confident that in due course efforts would be made to get crop loan facilities at the concessional rate of four per cent extended to post-harvest management loans,” Food Minister K V Thomas said while speaking at the launch of the negotiable warehouse receipt system.
He said loans at concessional rates for post-harvest activities would incentivise farmers to store their produce in designated warehouses at the cheapest available rate of interest.
Finance Minister Pranab Mukherjee, in his 2011-12 Budget speech, raised the additional interest subvention on short-term loans to three per cent from two per cent, thereby making the effective rate of interest to four per cent for those farmers who repay their loan in time.
Officials said the food ministry was now pitching for extending the same rate for loans taken for post-harvest management as well.
Also Read
Meanwhile, Food Secretary B C Gupta said the government could look at the possibility of allowing additional sugar exports under the open general licence (OGL) after receiving final production figures for the current season (October-September).
“Let the final output come, we will review it,” Gupta told reporters on the sidelines of the same event. The country has started allowing sugar export in the 2010-11 season as domestic production is expected to outstrip demand.
Initially, the government allowed mills to fulfil the export obligation of nearly one million tonnes under the advance licence scheme. Recently, export of 500,000 tonnes of sugar export under OGL was also allowed.
The government has estimated sugar output in the ongoing 2010-11 season at 24.5 million tonnes, as against a demand of 22 million tonnes.