Kerala - Thiruvananthapuram   

Interest-free loan for farmers

T. Ramavarman

Tie-up with district cooperative banks in Palakkad, Thrissur and Alappuzha

THIRUVANANTHAPURAM: The Government is planning to tie-up with the district cooperative banks in Palakkad, Thrissur and Alappuzha to give interest-free loans to the paddy farmers owning less than one hectare of land.

Minister for Agriculture Mullakkara Ratnakaran told The Hindu here that the district cooperative bank in Palakkad had already come out with such a proposal while talks were on with the banks in Alappuzha and Thrissur in this regard.

The loans would be given before the onset of the farming season and repayment would be after the harvest period. The Government would bear a portion of the interest burden of the banks in this regard. A sum of Rs.10 crore had been earmarked for this in this year's budget, Mr. Ratnakaran said.

Pointing out that the State's major rice growing areas were in these three districts, the Minister said a large number of farmers would be benefited by the scheme.

He said the Government had also decided to enhance the incentive given to paddy farmers from the present rate of Rs.1,000 to Rs.1,500 per hectare for each crop season.

The Minister said the Government was seriously considering the proposal mooted by several farm organisations that a high level of support price could be sufficient to do away with several other incentives. The argument of those organisations was that the farmers could be retained in the paddy sector if the Government was able to assure a fixed higher price for the crop.

``At present the Government is procuring paddy at Rs.850 a quintal. Suppose the Government is able to assure the farmers that it will procure paddy at Rs.1,000 a quintal, they may not want may other incentives. I have convened a meeting of all the farm organisations in the State on June 11 in Thiruvananthapuram to discuss the proposal,'' the Minister said.

He said it would be possible to make the proposed modern rice mills at Thakazhi and Alathur operational this year itself. The third one planned at Vechur near Vaikom might take some more time to get completed.

On the issues relating to labour shortage in the paddy farm sector, the Minister said there was a proposal to constitute labour banks in the major rice cultivating areas.

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