MUMBAI (Commoditiescontrol) - In a bid to further strengthen the farmers and energies the sagging agriculture economy, the central cabinet ministry has approved further extension of 3 per cent interest subvention benefit for crop loans. The benefits is made allowed to those farmers who have paid their previous loan on time.
According to the media reports, the Cabinet on Tuesday approved the scheme to ensure farmers get crop loans up to Rs 3 lakh at seven per cent a year interest. An additional subvention of three per cent would be given to those who pay loans on time.
Accordingly, approval has been granted towards expenditure of Rs 18,110 crore for FY16 to enable banks to provide three per cent interest subvention on short-term crop loans to those who make timely repayment. Of the total amount sanctioned, Rs 2,332 crore would be provided to Nabard and the remaining to commercial banks. The subvention will be applicable to those farmers who repay their amounts within one year of disbursal and it will be restricted to Rs 3 lakh of short-term crop loans. The subvention would also be applicable for post-harvest loans taken by small and marginal farmers against their negotiable warehouse receipts.
Further, assistance of Rs 374 crore will be made available for farmers holding Kisan Credit Cards.
The subvention would continue to be provided to farmers affected by natural calamities. The scheme was announced in the 2015-16 Union Budget. For 2015-16, the target of agriculture credit has been raised to Rs 8,50,000 crore, from Rs 8,00,000 in 2014-15.
Among other decisions, the Cabinet extended the Modified Special Incentive Package Scheme (MSIPS) by five years and also expanded the scope of the programme to cover 15 new product categories.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) allowed bulk exports of rice bran oil and removed quantitative restrictions on out-bound shipments of organic edible oils. Although India is a major importer of edible oils, the Centre has allowed bulk exports of rice bran oil to help small rice millers realise better price as demand of this cooking oil remains limited in the domestic market. India imports 10 million tonnes of vegetable oil - largely edible - annually, which is 60 per cent of the country's total demand. Edible oil exports have been prohibited since March 17, 2008. Certain exemptions have been allowed from time to time.
(By Commoditiescontrol Bureau; +91-22-40015533)
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