Maharashtra plans interest subvention scheme for livestock farmers

Maharashtra plans a new interest subvention scheme for farmers and cattle rearers ahead of local polls, benefiting 8 million and costing ₹50 crore annually.

Mumbai: With local body polls approaching, the Maharashtra government is planning a new interest subvention scheme to provide relief to farmers who are also cattle rearers. The proposal, expected to benefit around eight million people, will see the state bearing the interest burden on loans taken for animal husbandry activities.

Maharashtra plans interest subvention scheme for livestock farmers

According to officials from the animal husbandry department, most livestock keepers are farmers who also borrow crop loans from banks. While the centre already offers an interest subvention of up to 3% on loans of up to ₹3 lakh for cattle keepers, the state plans to cover the remaining 4% interest.

Maharashtra has over 16 million registered farmers, of which over 4.5 million avail crop loans with existing interest subvention for loans up to ₹3 lakh. Apart from the crop loan borrowers, the cattle keepers will now get the interest subvention under the proposed scheme. “Some farmers who already borrowed crop loans may get an additional interest-free loan of ₹3 lakh for livestock purposes. Though the state government has registered 8 million cattle keepers, we expect at least half of them to borrow additional loans under this scheme,” an official said.

The state government expects at least half of the eight million registered cattle keepers to avail of the new benefit, which could cost the exchequer over ₹50 crore annually.

Another official from the finance department said that the decision is a part of the government’s broader policy to extend agricultural status to those practising animal husbandry. This will make livestock keepers eligible for additional benefits such as power subsidies and insurance cover. “We estimate that the income of farmers engaged in allied sectors could rise by about ₹7,000 crore through these initiatives,” the official added.

The decision is expected to be announced ahead of the district council elections scheduled to be held next month, the official said. “The heavy rainfall in parts of the state, and especially Marathwada and western Maharashtra, caused damage to the livestock and livestock keepers. The decision may give some respite, helping the cattle keepers to borrow to recover the livestock herd,” he added.