This topic covers the Information related to Agricultural Credit.
What to Do?
- To save themselves from the clutches of money lenders, farmers can avail loan facility from banks.
- Loan facility is available through a large network of Commercial Banks, Regional Rural Banks and Cooperative Credit Institutions in the country to fulfill the crop loan and term loan needs of the farmers.
- Ensure timely repayment of bank loan.
- Proper record of loan should be maintained by farmer.
- Utilize the bank loan for actual purpose for which bank loan is taken.
What Can You Get?
Credit facility to farmers
|Credit Facility to Farmers|
|S.NO||Credit Facility||Quantum of Assistance|
Collateral / security-free loan
|Crop loan upto Rs.3 lakhs at 7% rate of interest. This interest rate becomes 4% due to 3% interest subvention incentives provided to those farmers who repay crop loan on time
No need of collateral security for farm loan up to Rs 1 lakh
|2||Kisan Credit Card||Farmers can avail crop loan through Kisan Credit Card. Loan /credit limit is fixed on the basis of crop sown and area under cultivation. Kisan Credit Cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/ disability. Crop coverage loans are covered under the Crop Insurance Scheme.|
|3||Investment Loan||Loan facility to the farmers is available for investment purposes in the areas viz. Irrigation, Agricultural Mechanization, Land Development, Plantation, Horticulture and Post-Harvest Management|
Price Policy for Agricultural Commodities
Price Support Scheme (PSS) for Procurement of Oilseeds, Pulses & Cotton under Minimum Support Price (MSP)
|Name of the Scheme||Objectives||Beneficiary||Implementing Agency||Commodities covered
|Likely Benefit to the growers||Pattern of Assistance|
prices to the
and raw jute.
Pulses & cotton growers in case of price fall below the
of India in
Rabi & Kharif
(i) Central Agencies
mends MSPs of 23 commodities,
7 cereals (paddy, wheat, maize,
and ragi), 5
pulses (gram, tur, moong, urad, lentil), 7 Oilseeds
seasmum, sunflower, safflower,
cotton and raw
(PSS) operations, farmers are assured to get
price in case
price of that
|i)Farmers– MSP for the
specific commodity is fully paid to the farmers, in case the prices rule below the
(ii) Central Agencies –
Losses incurred to the
central agencies are fully reimbursed by the Government of India. Besides, service charges @ 2.5%
on the procurement cost for Copra and 1.5% for oilseeds, pulses & cotton
are also paid to the central agencies.
(iii) State /Primary Agencies – The difference
between MSP and Ruling Price along with all expenses up to the storage points are paid to the State agencies by Central agencies/Government of India. Besides, 1% service charge at the ex-godown cost is also paid.
Whom to Contact
- Joint Secretary (Cooperation), Department of Agriculture & Cooperation, Krishi Bhawan, New Delhi.
- Regional Offices of NAFED & SFAC located in State Capitals.
- District Level Offices of Cooperative Marketing/Commodities Federations.
- Marketing Cooperative Societies at Tehsil Level and FPOs /FPCs at Block Level.
Pradhan Manthri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
- The Union Cabinet approved new Umbrella Scheme 'Pradhan Mantri Annadata Aay Sanrakshan Abhiyan: PM-AASHA on 12th Sept, 2018.
- The Scheme is aimed at ensuring remunerative prices to farmers for their produce as announced in the Union Budget for 2018.
- This step is a major boost to the pro-farmers initiative of the Government.
- The new Umbrella Scheme is comprised of Price Support Scheme, Price Deficiency Payment Scheme and Pilot of Private Procurement and Stockist Scheme.
- This step aims at protecting the farmers’ income which is expected to go a long way towards the welfare of farmers.