Loans to farmers at 7 percent interest

Bhopal, Nov 3 (UNI) Agriculture Minister Gopal Bhargava today told the Madhya Pradesh Assembly that loans would be provided to farmers through cooperative societies at 7 percent interest though the Centre's policy to give farm loans at the same interest rate was applicable from April year in commercial banks only.

Mr Bhargava claimed the Centre was not giving adequate assistance to the cooperative societies. To ensure that farmers got benefit of the crop insurance scheme, the unit for crop evaluation was reduced to Patwari circle as compared to tahsil earlier, he added.

Mr Rajvardhan Singh (Cong), who raised the issue through a call attention notice, suggested that the farmers could be spared from payment of 3 percent penal interest if the due date for loan payment was changed from March 15 as rabi crop was normally mature by April 15 only.

Mr Singh said normally 20 to 23 percent interest was levied from farmers by the cooperative societies, while the Centre was providing loans at 7 percent interest. Agriculture implements were sold by the societies much higher than the market price, he said, adding farmers were also burdened in payment of share money and margin money.

UNI SP 1443