Coronavirus crisis: Rajasthan farmers to get loan at 3 per cent by pledging their produce

Jaipur, May 16: Rajashthan Chief Minister Ashok Gehlot on Friday said that the state farmers would get a loan at 3 per cent interest rate by mortgaging their produce and the state would bear 7 per cent interest from farmer welfare fund.

The state Chief Minister approved the proposal for providing a better value of the produce to the farmers, making easy and decentralised arrangements for the procurement and providing loans at a low-interest rate by keeping the yield intact.

In an official communique, the Chief Minister has decided to give a grant of Rs 50 crore every year to cooperative farmer welfare scheme from the farmer welfare fund. With this, farmers mortgaging their produce can get a loan at 3 per cent interest rate, whereas the state government will bear the 7 per cent from the fund.

Under this scheme, farmers would be assessed on the basis of market value or support price of the produce they hold, whichever is lower, and 70 per cent of the assessed amount would be made available as a mortgage loan.

According to reports, small and marginal farmers can avail up to Rs 1.50 lakhs and big farmers up to Rs 3 lakhs loans at a rate of 3 per cent. Also, the farmers can sell their agricultural produce at a reasonable price.

The farmer will get this loan for a period of 90 days. In special circumstances, this limit will be up to 6 months. If the loan amount is repaid within the given time, the farmer would get an interest grant. Only 3 per cent interest will be charged from farmers by cooperative banks and societies instead of 11 per cent.

Meanwhile, CM Gehlot said that quarantine should not be done for 14 days in the case of people moving from one district to another, except for those from hotspots or curfew areas.

The Rajasthan Chief Minister also said that quarantine should be done only for those people who have symptoms of cold, cough or influenza-like illness.

CM Gehlot also reviewed the movement of migrants, quarantine facilities and camps arrangements and said, "It is our responsibility to provide better facilities in quarantine camps. The officials should understand the hardship of the workers and apply best practices to these workers living in the quarantine centres so that they can get relief in this hour of crisis."