Agricultural Credit
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
| S.NO | Credit Facility | Quantum of Assistance |
| 1 | Interest 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 1.6 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 under Scheme |
Likely Benefit to the growers | Pattern of Assistance |
| Price Support Scheme (PSS) |
To provide
remunerative/
guaranteed
prices to the
oilseeds,
cereal, copra,
sugarcane
and raw jute.
Pulses & cotton growers in case of price fall below the
Minimum
Support
Price (MSP)
declared by
Government
of India in
both crop
seasons i.e.
Rabi & Kharif
every year.
|
All the
cereals
oilseeds,
pulses &
cotton,
copra,
sugar-
cane and
raw jute
growers
of the
country.
|
(i) Central Agencies
|
CACP recom-
mends MSPs of 23 commodities,
which comprise
7 cereals (paddy, wheat, maize,
sorghum, pearl
millet, barley
and ragi), 5
pulses (gram, tur, moong, urad, lentil), 7 Oilseeds
(groundnut,
rapeseed-mustard, soyabean,
seasmum, sunflower, safflower,
nigerseed), and
4 commercial
crops (copra,
sugarcane,
cotton and raw
jute).
|
Through
Price sup-
port Scheme
(PSS) operations, farmers are assured to get
minimum
guaranteed
price in case
the market
price of that
particular
commodity
falls below
the MSP
|
i)Farmers– MSP for the specific commodity is fully paid to the farmers, in case the prices rule below the MSP.
(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.
Source: Department of Agriculture, Cooperation and Farmers Welfare
Last Modified : 3/16/2020
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