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"Modalities for the purpose are being worked out since all such loans would go to the farm community from state-owned cooperative banks," Anupam Rajan, state government spokesperson told Business Standard.
The final stage of discussion is about working out whether the loan would go in form of subsidy or cash. Farmers generally use the loans for purchase of seeds and fertilisers, though they have also used a large portion for other necessities.
| Year | Loan disbursed (Rs cr) | Number of beneficiaries (mn) |
| 2012-13 | 10,343.08 | 2.89 |
| 2013-14 | 12,686.21 | 3.19 |
| 2014-15 | 13,597.88 | 3.32 |
| 2015-16 | 8,521.00 | |
"We are working out it, if it could be given as, say, growth subsidy on farm input," R K Swain, agriculture production commissioner told Business Standard. "If it goes towards farm inputs, they will have to return only 90 percent of the entire loan in installments. They may have option to repay certain installments and skip the last one."
While speaking to Business Standard, state chief minister Shivraj Singh Chouhan had said bonus on minimum support price against per quintal purchase of wheat or paddy no long exists, but I want to compensate them the entire amount earmarked under bonus head. "We would soon launch the negative interest rate farm loan scheme," Chouhan had told BS, "nearly 40% of our farmers would be benefitted with this scheme."
Madhya Pradesh till last rabi procurement season had paid Rs 150 bonus on every quintal of wheat procured from farmers. As a part of its agriculture reform programme to make farming a profitable business, the BJP-ruled Chouhan government pared farm loan rates to seven per cent in 2003, 5 per cent in 2008, 3 per cent in 2010 and zero percent in 2011 and 2012 against purchase of fertilizers and seeds.
According to advance figures for 2013-14 released by Central Statistics Organization (CSO), Madhya Pradesh had posted a 24.99 per cent handsome growth in agriculture and allied sector. It claimed prestigious Krishi Karman Award by Union government for three years in a row in recognition of its outstanding performance in the sector. The growth rate in farm sector stood at 20.16 per cent in 2012-13 and 19.85 per cent in 2011-12.
In 2007 Chouhan government had embarked on ambitious project of making farming a profitable business. However according to Economic Survey 2014-15 of state government 2004-05 contribution of primary sector stood at 27.66 (quick estimate) percent and 26.16 (advance estimate) per cent in 2013-14.
