Farm-sector credit announced by Sitharaman is yet to be notified by the Reserve Bank of India, but the quick loans will go from NABARD, India’s main state-run financier for rural needs.(Photo: Waseem Andrabi / Hindustan Times)
Farm-sector credit announced by Sitharaman is yet to be notified by the Reserve Bank of India, but the quick loans will go from NABARD, India’s main state-run financier for rural needs.(Photo: Waseem Andrabi / Hindustan Times)

Rs 20,500-crore loan support for farmers to sow crop

Farmers access agricultural loans, critical for meeting inputs such as fertilisers, seeds and power, through three types of rural banks across states.
By Zia Haq | Hindustan Times, New Delhi
UPDATED ON MAY 20, 2020 06:47 AM IST

The Union government will issue Rs 20,500 crore worth of quick loans to farmers who need money for the critical summer-sowing season starting in June, a tranche that will be drawn from an already available fund, but which will ultimately be replenished by farm-sector credit announced by finance minister Nirmala Sitharaman,an official from the National Bank for Agriculture and Rural Development (NABARD) said on condition of anonymity.

Farmers access agricultural loans, critical for meeting inputs such as fertilisers, seeds and power, through three types of rural banks across states. These are 33 state co-operative banks, 352 district central co-operative Banks and 43 rural regional banks.

During India’s summer-sown season, known as kharif, farmers plant the widest variety of crops, such as rice, pulses, groundnut, coarse cereals, sorghum and maize, among others. This accounts for half of India’s annual food output.

Farm-sector credit announced by Sitharaman is yet to be notified by the Reserve Bank of India, but the quick loans will go from NABARD, India’s main state-run financier for rural needs.

NABARD will take usual route of reaching farmers. “NABARD will extend Rs 20,500 crore. Of this, Rs 15,200 crore will be extended through cooperative banks and balance Rs 5,300 crore through rural regional banks as a special liquidity facility in various states,” the NABARD official said .

“It will augment the resources of cooperative banks and rural regional banks to enable them to extend credit to farmers for pre-monsoon and kharif (summer-sown season) 2020 operations,”this person added.

The fund will be made available as a means of “frontloading” of resources of these banks so as to ensure adequate liquidity with them for financing farmers, the official said. Front-loading is a financial term that means upfront injection of liquidity.

The government subsidises short-term crop loans to make farming cheaper. Moreover, banks must necessarily lend to farmers because agriculture is a so-called priority lending sector. All scheduled commercial banks must direct 40% of their adjusted net bank credit towards priority sector lending.

Farmers get crop loans at a cheaper 7% as compared to consumer loans, on which the interest ranges from 12% and 14%. For those making timely repayments, the effective rate of interest is even lower at 4%.

“Farmers have already accessed over Rs 4 lakh crore of such credit this year. Agriculture is the only sector appears better equipped to absorb the lockdown shocks because supply lines of fertilisers and seeds etc have fared better than other goods,” said Abhishek Agrawal, an economist with Comtrade, a commodities firm.

The prediction of a normal 2020 June-to-September monsoon by the India Meteorological Department (IMD) has brought relief to farmers, as it will likely lessen the strain on the economy from widespread disruptions caused by the Covid-19. The monsoon rains are critical because nearly 60% of India’s net arable land lacks irrigation and half the population depends on agriculture for a livelihood.

With good rains, spending by rural consumers on manufactured items such as television sets and gold jewellery goes up, and boosts factory output. A deficient monsoon cuts rural consumption and also drives up inflation. A normal monsoon is key for robust agricultural output growth, which the government targets at around 4%.

Agrawal said since incomes of every class had been hurt, a “class of farmers may still be in need of cash”.

SHARE THIS ARTICLE ON
app
Close
Farmers from all across the country are marching towards Delhi in order to take part in 'Kisan Gantantra Parade' on the occasion of Republic Day. Tractors from Punjab, Haryana, and Rajasthan have reached on Tikri border.(ANI)
Farmers from all across the country are marching towards Delhi in order to take part in 'Kisan Gantantra Parade' on the occasion of Republic Day. Tractors from Punjab, Haryana, and Rajasthan have reached on Tikri border.(ANI)

Farmers march from Nashik to Mumbai to take part in 'Kisan Gantantra Parade'

ANI
PUBLISHED ON JAN 24, 2021 09:29 AM IST
The Samyukta Kisan Morcha (SKM) has asked the farmers to take part in the agitation from January 23 to 26, including rallies to the Governors of states.
Close
Prime Minister Narendra Modi greets Bangladesh Prime Minister Sheikh Hasina before their bilateral talk, at Hyderabad House.(Mohd Zakir/HT PHOTO)
Prime Minister Narendra Modi greets Bangladesh Prime Minister Sheikh Hasina before their bilateral talk, at Hyderabad House.(Mohd Zakir/HT PHOTO)

How Dhaka got vaccines from India after China asked it to share trial costs

By Shishir Gupta, New Delhi
PUBLISHED ON JAN 24, 2021 09:16 AM IST
India, in sharp contrast, sent a gift of two million doses of Covishield vaccine to Dhaka on January 21 as well as facilitated a commercial contract of 30 million doses with the Pune-based SII.
Close
Fog seen engulfed during the early hours of the morning in New Delhi. (Sanchit Khanna/ HT Photo)
Fog seen engulfed during the early hours of the morning in New Delhi. (Sanchit Khanna/ HT Photo)

News updates from Hindustan Times: Cold wave and all the latest news

By hindustantimes.com
PUBLISHED ON JAN 24, 2021 08:54 AM IST
Here are today’s top news, analysis and opinion. Know all about the latest news and other news updates from Hindustan Times.
Close
The problem of child pornography on the internet and social media has increased during the pandemic, says an expert. (iStockphoto/Representative Image)
The problem of child pornography on the internet and social media has increased during the pandemic, says an expert. (iStockphoto/Representative Image)

Sharp rise in child pornography cases worry experts

By Ramesh Babu | Edited by Abhinav Sahay, Thiruvananthapuram
PUBLISHED ON JAN 24, 2021 08:47 AM IST
  • Kerala seems to have made considerable progress in tackling the menace, statistics show.
Close
ITBP personnel during the full dress rehearsal for the upcoming Republic Day Parade, in New Delhi on Saturday.
ITBP personnel during the full dress rehearsal for the upcoming Republic Day Parade, in New Delhi on Saturday.

Woman fighter pilot, soldiers in masks: Key things to watch for this R-Day

By hindustantimes.com | Edited by Shivani
UPDATED ON JAN 24, 2021 08:29 AM IST
In more than five decades, this year's parade will be the first Republic Day parade to be organised without a chief guest. Before this, there were no chief guests during the Republic Day parade in 1952, 1953 and 1966.
Close
The presence of high attitude passes en-route to north and south banks of Pangong Tso on Ladakh rules out any withdrawal of Indian armoured units from the contested points.(File photo)
The presence of high attitude passes en-route to north and south banks of Pangong Tso on Ladakh rules out any withdrawal of Indian armoured units from the contested points.(File photo)

India, China to hold ninth round of talks to resolve Ladakh border standoff

By hindustantimes.com | Edited by Kanishka Sarkar
PUBLISHED ON JAN 24, 2021 08:21 AM IST
Army chief General Manoj Mukund Naravane said earlier this month that India was committed to resolving the situation along the contested LAC through talks but no one should test India’s patience.
Close
A health worker prepares to administer a Covid-19 vaccine to a hospital staff at a government Hospital in Jammu, India. (AP)
A health worker prepares to administer a Covid-19 vaccine to a hospital staff at a government Hospital in Jammu, India. (AP)

LIVE: New Zealand health officials probe probable community Covid-19 case

By hindustantimes.com
UPDATED ON JAN 24, 2021 09:30 AM IST
The US, India, Brazil, Russia and the UK are the five worst-hit countries, with the widely followed Johns Hopkins University tracker’s worldwide tally showing 98.27 million infections as of Saturday evening.
A shopkeeper arranges eggs in a tray in Thane district in this file photo. (Praful Gangurde/HT Photo)
A shopkeeper arranges eggs in a tray in Thane district in this file photo. (Praful Gangurde/HT Photo)

Bird flu: Avoid half-boiled eggs, undercooked chicken, says govt

By hindustantimes.com | Written by Meenakshi Ray, New Delhi
UPDATED ON JAN 24, 2021 08:34 AM IST
The regulator also said the World Health Organization has stated it is safe to eat poultry meat and eggs and that there is no epidemiological data to suggest the disease can be transmitted to humans through cooked food.
Close
Farmers sit at demonstration site during the ongoing protest against the new farm laws at Ghazipur Border, in New Delhi.(ANI)
Farmers sit at demonstration site during the ongoing protest against the new farm laws at Ghazipur Border, in New Delhi.(ANI)

Over 2 lakh tractors will be part of Jan 26 'kisan parade': Farmer leaders

PTI
PUBLISHED ON JAN 24, 2021 07:43 AM IST
Kirti Kisan Union president Nirbhai Singh Dhudike, who presided over a meeting of Punjab farmers' unions, said that more than one lakh tractors are expected to arrive from the state on Sunday.
Close
BKU spokesperson Rakesh Tikait along with farmers raises slogans during their ongoing agitation against Centre's farm reform laws at Ghazipur border, (PTI)
BKU spokesperson Rakesh Tikait along with farmers raises slogans during their ongoing agitation against Centre's farm reform laws at Ghazipur border, (PTI)

LIVE: Around 25,000 tractors from UP, Uttarakhand to participate in Jan 26 rally

By hindustantimes.com
UPDATED ON JAN 24, 2021 09:13 AM IST
Over two lakh tractors are expected to take part in the January 26 "Kisan Parade" in the national capital, farmer union confirmed on Saturday.
BKU spokesperson Rakesh Tikait along with farmers raises slogans during their ongoing agitation against Centre's farm reform laws at Ghazipur border,(PTI)
BKU spokesperson Rakesh Tikait along with farmers raises slogans during their ongoing agitation against Centre's farm reform laws at Ghazipur border,(PTI)

About 25,000 tractors from UP, Uttarkhand to participate in Jan 26 rally

PTI
PUBLISHED ON JAN 24, 2021 06:34 AM IST
The tractor parade will start from the Ghazipur, Singhu and Tikri border points of Delhi, but the final details of routes are yet to be finalised.
Close
The government had blocked 59 Chinese apps in June and 118 more apps, including PUBG mobile game, in September.(REUTERS)
The government had blocked 59 Chinese apps in June and 118 more apps, including PUBG mobile game, in September.(REUTERS)

Govt to continue ban on Chinese apps including Tiktok

PTI
PUBLISHED ON JAN 24, 2021 06:30 AM IST
The notice has been issued by the Ministry of Electronics and IT after reviewing replies of blocked apps. When contacted, Tiktok confirmed to have received a reply from the government.
Close
This is the second tunnel to be discovered in 10 days by the force that last year went on a campaign mode to detect and destroy a web of tunnels believed to have been built by Pakistan’s deep state, a senior BSF official said on Saturday.(PTI Photo)
This is the second tunnel to be discovered in 10 days by the force that last year went on a campaign mode to detect and destroy a web of tunnels believed to have been built by Pakistan’s deep state, a senior BSF official said on Saturday.(PTI Photo)

BSF unearths tunnel used by Pak to send in terrorists to India

PUBLISHED ON JAN 24, 2021 06:23 AM IST
The 39-metre-deep tunnel was detected between Border Post number 14 and 15 near BSF’s outpost at Pansar, Kathua district. On the other side of the fence are Pakistani border outposts of Abhiyal Dogra and Kingre-de-Kothe in Shakargarh district.
Close
“The design {of the tableau} is a celebration of workers’ well- being and security,’’ minister for labour and employment Santosh Gangwar said.
“The design {of the tableau} is a celebration of workers’ well- being and security,’’ minister for labour and employment Santosh Gangwar said.

Republic Day tableau to honour Indian worker

By Sunetra Choudhury
UPDATED ON JAN 24, 2021 08:18 AM IST
The theme of the tableau, which features workers in hard hats and safety gear, is encapsulated in the slogan: “Mehnat ko samman, Adhikar ek samaan’’ (Respect for hard work, Equal rights for all).
Close
On Saturday, 123 adverse reactions were reported across the country, according to the provisional data provided by the Union health ministry.(HT file photo)
On Saturday, 123 adverse reactions were reported across the country, according to the provisional data provided by the Union health ministry.(HT file photo)

1.5 million Indians receive Covid -19 vaccine in 8 days: Govt data

By Anonna Dutt, New Delhi
UPDATED ON JAN 24, 2021 06:04 AM IST
The daily number of shots administered had risen to 230,000 on Thursday after changes were made to the Co-WIN platform to allow walk-ins on Tuesday. The app now allows registered beneficiaries to get the shot out-of-turn even if their name does not figure on the list for a particular day.
Close
SHARE
Story Saved
OPEN APP