Bhopal, Sep 28 (IANS) Madhya Pradesh has reduced the interest rate on cooperative agriculture loans to seven percent and exempted loans up to Rs.100,000 from stamp duty.
The decision has been taken in accordance with the suggestions received at the recently held Kisan Panchayat.
Chief Minister Shivraj Singh Chouhan announced the relaxations for farmers at a State Level Bankers Committee meet Wednesday. He also declared about the simplification of procedure for no-dues certificate for farmers to obtain cooperative loans.
'At present the interest rate on cooperative agricultural loans ranges from 10 percent to 16.5 percent. Going by the estimate that cooperative agricultural loans to the tune of Rs.26 billion were provided to the farmers in the state every year, the above concession would entail a financial burden of Rs.1.2 billion on the state exchequer,' an official said.
Chouhan also asked members of the Bankers Committee to make available higher funds for employment-oriented traders to increase per capita income of the state.
The chief minister asked members to give priority to those farmers in providing loans who are able to repay them out of the profit from farming and to ensure that farmers of weaker sections are not deprived of the credit facility.
Madhya Pradesh is the first state in the country to implement the Vaidyanathan Committee's recommendations. The Vaidyanathan Committee suggested ways to revive the long-term cooperative credit structure to the farmers.
Describing the credit card facility as a boon to farmers, Chouhan said it has freed them from the clutches of the moneylenders.
While 360,000 farmers were provided with the facility of credit cards, 250,000 more are yet to be covered by the scheme.