Rs 30,000 Crore alloted to 3 Crore Farmers as an Emergency Credit to be Provided to, Says FM
Posted On : May 15, 2020,11:12 am
Thursday finance minister Nirmala Sitharaman announced that Rs 30,000 crore additional emergency working capital funding will be provided to farmers through NABARD.
This allotted fund will be provided for crop loan requirements. This is over and above Rs 90,000 crore to be approved by NABARD through normal finance methods, said FM Nirmala Sitharaman as she made the second tranche of announcements for the government’s economic package.
The Centre expects that this will benefit mostly small and marginal 3 crore farmers. This is to help post-harvest Rabi and current Kharif requirement in May and June added Nirmala Sitharaman.
Sitharaman said in her media briefing on Thursday. Apart from this, Rs 2 lakh crore concessional credit will be extended to help 2.5 crore farmers through Kisan credit cards. A very important move will be undertaken to allotted for concessional credit to PM-KISAN beneficiaries through Kisan credit cards.
This scheme will also include fishermen and animal husbandry farmers.2.5 crore farmers will be covered and will benefit from credit flow of Rs 2 lakh crore, said Sitharaman.
As part of the presentation on Thursday, Sitharaman said that three crore farmers had availed loans that were given to them at concessional rates. Loans worth Rs 4 lakh crore were availed ever since the lockdown.
Twenty-five lakh new Kisan credit cards were sanctioned with a total loan limit of Rs 25,000 crore, she said.
Sixty-three lakh loans amounting to Rs 86,600 crore were approved in agriculture between 1 March and 30 April 2020.
Refinancing of Rs 29,500 crore provided by NABARD to cooperative banks and regional rural banks in March 2020 was carried out. The Support of Rs 4,200 crore allotted under rural infrastructure development fund to states during March 2020 for rural infrastructure. said Sitharaman.
Working capital limit of Rs 6,700 crore was sanctioned for procurement of agriculture produce to state government entities since March 2020.
The important measure was taken by the finance minister, saying the government has rightfully identified the agricultural sector as one of most impacted and added the Rs 2 lakh crore of loans will be a more relief to the agricultural sector. said by Amith Agarwal, Co-Founder & CEO, AgriBazaar.
As the Indian government forward towards a new economic revival with the spirit of self-reliance infused by PM, the agricultural sector has to be rapidly digitalized and modernized to have a supply chain continuity going on the face of any future crisis, he said.