New Delhi, Dec 7 (UNI) Further Reduction in interest rate on short-term credit to farmers is in the offing, Finance Minister P Chidambaram indicated in the Lok Sabha today.
Replying to supplementaries, Mr Chidambaram said the Government had over the years reduced the interest rate on short-term credit from 10 per cent to 7 per cent. Any Proposal for further reduction would be considered sympathetically.
He said he would ask the banks at the next review meeting to increase lending for organic farming.
On the second Vaidyanathan Committee Report, which looked into credit to farmers, he said some consensus had emerged, which had been sent to state finance ministers and chief ministers.
''Once we get their response, we will take action,'' he added.