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The announcement was made by agriculture and cooperation minister Babu Bokhiria, while replying to the budgetary demand of his ministry for the year 2013-14 in the state assembly.
"This financial year the monsoon was delayed because of which the farmers who did timely sowing had to suffer as the crop was destroyed. As a result farmers were burdened with payment of interest on agriculture loan that they had availed for the failed crop," the minister told the house.
To relieve the farmer of this additional burden, the government has decided to provide a interest reimbursement of 4 per cent for all loans taken through cooperative societies and if repayed in one years time, Bokhiria said.
He further informed the assembly that all agriculture loans taken through cooperative societies between period April 1, 2012 and August 15, 2012 upto Rs 3,00,000 would be treated as zero interest loans. For this a allocation of Rs 65 crore has been made in budget for 2013-14, the minister added.
The ministry has also made provision of 2 per cent relief in interest to state cooperative banks in order to ensure that the farmers get agriculture loan at 7 per cent.
