Cash credit limit raised to Rs 6 lakh per acre in Punjab

Chandigarh, Nov 13 (UNI) In order to bail out Punjab farmers from the current financial crisis, the Co-operative Department has raised revolving cash credit limit from the present Rs 3 lakh to Rs 6 lakh per acre and kept the rate of interest on crop loan at 7 per cent.

This was disclosed by Punjab Co-operation Minister Capt. Kanwaljit Singh at a press conference here today.

He said that 4 lakh farmers will awail a relief of Rs 200 crore under One Time settlement Scheme (OTS) which had been extended upto December 31, 2007.

He said that PADBs would give 1.5 per cent rebate to the farmers who paid their installments in time as good pay masters were given due importance by the department.

The Minister said that in the changing environment and the greater commercialization of Punjab's agriculture it had become imperative to identify new markets especially for cash crops capable of giving higher returns to farmers and thereby ameliorating their economic condition as well as creating stability of price structure and demand.

He said that Markfed will engage in processing and export of Basmati rice and potatoes in the first instance. During the current season Markfed has supplied 2,48,900 MTs of DAP to farmers against the indent of 2,42,000 MTs.

Capt Singh informed that dairy farming provided a convenient approach to diversification of food grains which gave low income return to the farmers.

He said the Milkfed had launched a major initiative to increase the milk availability from 750 gm to 1000 gm per head daily.

UNI