The government today said it is "committed" to making bank loans cheaper for farmers by reducing the interest rate to 5 per cent from the present 7 per cent.
“We are committed to bringing the interest rate further to 5 per cent,” Minister of State for Food and Public Distribution Akhilesh Prasad Singh was quoted as saying in a statement issued by industry chamber Ficci.
The government has brought down the interest rate on loans to farmers from 15 per cent to 7 per cent during the last four years, the statement added.
Speaking at a seminar on warehousing, Singh said timely accreditation of the vast warehousing network, development of quality manpower and creation of a scientific storage structure are key to a successful implementation of the Warehousing (Development & Regulation) Act.
The enactment of the Act offers numerous opportunities for agri-business in the form of assurance delivery, lower transaction costs, lower re-insurance premiums, assurance against risks of theft, pilferage, quality and quantity losses and faster disposal of insurance claims, Singh said.
He also called for the development of a robust grading and standards system for commodities to implement the warehouse receipts scheme successfully.
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The Ministry of Food & Public Distribution is evolving rules to implement the provisions of the new Act, including setting up of a regulator to oversee the certification and accreditation of warehouses, the minister said.
However, recognising bottlenecks in infrastructure, the minister called for greater investments from private sector.
Speaking on the occasion, Food Secretary Alka Sirohi, said the ministry would set up a working group to reduce multiplicity of agencies that investors currently wade through for sanctions.