Coronavirus Update- Highlights About The Loan Being Provided To Rajasthan Farmers

In a major move to provide relief to farmers during the COVID19 crisis, the Rajasthan government will provide them loans at subsidised rates against their produce to prevent distress sale.

It is generally seen that when the crops are harvested, the selling price of the crops is quite less. As farmers have to pay for institutional loans and fulfil their needs, they are compelled to sell their crops at low prices. If they do not sell crops, they are forced to take loans from traders and middlemen at high rates. It is for this reason that the government has intervened at the time of the pandemic

Here are X things that will happen through this relief package

* Relief for farmers who haven’t made construction on allotted land: Relief would also be given to farmers who have not made constructions on the land allotted to them in mandis.

* Govt to provide certified seeds: The Ashok Gehlot government will establish outlets to provide certified seeds to farmers to farmers would be set up in 200 mandis. Chief Minister Ashok Gehlot made these announcements on Friday. Outlets will be set up in 200 mandis to provide certified seeds to farmers. This would be done in a phased manner and production of seeds would be increased from 8 lakh quintal to 12 lakh quintal.

* Loans for small farmers and large farmers: The Rajasthan government has announced that farmers will get loans at an interest rate of 3 per cent against their crops. The loan amount will be capped at Rs 1.5 lakh for small and marginal farmers and at Rs 3 lakh for big farmers.

* Interest rate subsidy at 7%: The government will allocate Rs 50 crore from the Kisan Kalyan Yojna to provide interest rate subsidy at 7 per cent. Earlier the government would bear 2% of the interest amount.

* T&C for loan payment: The loan amount will be calculated on the basis of comparing the market rate and support price and 70% of whichever is less would be given as loan amount. In order to avail the special interest, the loan would have to be paid within a period of 90 days and would be extended to a period of 6 months under extraordinary conditions.

* Who is eligible? Farmers who are members of the village cooperative societies that are audited and do not carry an NPA of more than 10% would be eligible for these loans.

* Additional relief: Relief would also be given to farmers whose allotments have been cancelled for not making constructions on them even as the 99 year lease lapsed. They have been given an opportunity to reinstate their allotment by making a payment of 25% of penalty by June 30 and make the construction till December 31, 2020.