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Rajasthan government to give farm loans to one million new farmers
The farmers will get double benefit with the decision – they will get loans as required without mortgaging land and other benefits of being associated with cooperatives.
After waiving cooperative farm loans, the Rajasthan government is considering issuing crop loans to one million new farmers who have not got the benefit before.
“One million new farmers will be given crop loans in the next crop cycle through cooperative banks,” said cooperative minister Udai Lal Anjana. On the directions of chief minister Ashok Gehlot, it has been decided to provide relief to maximum farmers by giving them loans as required under the cooperative loan structure, he said.
The farmers will get double benefit with the decision – they will get loans as required without mortgaging land and other benefits of being associated with cooperatives.
The loan waiver decision of the Ashok Gehlot government will benefit around 3.2 million farmers of Rajasthan, and cost the state exchequer ₹18,000 crore. The total outstanding short-term loans till November 30, 2018 from the central cooperative banks have been waived, benefitting around 2.4 million farmers. This will cost the state exchequer ₹10,000 crore, officials said.
Anjana said crop loans will be distributed for the kharif season from April 1 to August 31 and for the rabi season, from September 1 to March 31.
“We want to strengthen the cooperative crop loan structure and ensure benefits to maximum farmers. Recently, many cases have come up, looking to which the decision has been taken to ensure that none of the farmers gets deprived of the right to get loan,” the minister said. “Biometric verification has been started for loan disbursement.”
Rajasthan State Cooperative Banks Ltd managing director Inder Singh said: “Our target is to bring those farmers in the cooperative fold who have never taken loans. This will also protect them from the clutches of money lenders.”
A senior department official said on anonymity, “It’s a clean slate as the government has waived all farm loans of cooperative banks.” He added, “There are around 40 lakh members of Gramin Seva Sehkari Samiti (GSSS) in Rajasthan, of which around three million farmers have been given loans. They are those who regularly take and repay loans. With limited finances, the remaining one million farmers get deprived -- the demand is high and supply is less.”
He said the cooperative banks have fixed finance, and grants from the state government and the Centre are limited. “Now that the new farmers are targeted, the state government is considering increasing the share. The state government in 2018-19 financial year had targeted to disburse around ₹16,000 crore, which is expected to be increased,” he said.
The official said when a farmer applies for PM Kisan scheme benefits, the portal has a column where the department is asking whether he has taken loan from cooperative banks. “This way we will get data and get it cross-checked. The new farmers will be identified and approached for loan.”