Soft loans at 6% for farmers on the anvil

The state government plans to offer soft loans at 6 per cent to farmers. This will not only help the government achieve 4 per cent agricultural growth but also ease the problems of debt-ridden farmers.

"Indian economy depends on agriculture and 4 per cent growth in this sector is necessary to achieve 8 per cent GDP. A decision related to low interest rate is expected shortly at the state cabinet meeting," said Chief Minister Deshmukh.

Agricultural loans are provided to farmers by National Bank for Rural and Agricultural Development (Nabard) via State Coop Bank (Shikhar Bank), district banks and cooperative societies or land development banks.

Due to this lengthy process interest rates increase. "The state government is talking to the central government to withdraw the middle stages and provide loans directly," said Deshmukh.

"Some or the other part of the state faces draught every year. All incomplete and proposed irrigation projects must be completed first to fight this situaton. The state government has made provision of Rs 1,500 core for this purpose. A Rs 425 crore special package has been approved for north Maharashtra.The funds will be used for irrigation projects and construction of dams on Tapi River," he added.

EASING THE MISERY

Rs 425 special package for north Maharashtra

State Cabinet to decide shortly on agri loans with 6 per cent interest rate.

State govt in talks with centre to remove middle stages and provide loans directly to farmers