Bagmati State Government To Provide Interest Free Loans To Small Farmers
June 9, 2020 | Investopaper
The Bagmati state government has decided to provide interest free loans to small farmers. This is probably the first time in the country that interest-free loans have been given to farmers.
Earlier, farmers were complaining that they were not getting access to concessional loans. According to the Ministry of Land Management, Agriculture and Cooperatives, the budget has been allocated to provide interest-free loans to small farmers.
The budget for these programs has been secured from the ceiling received by the state agriculture ministry with the consent of the state finance ministry. Arrangement has been made to provide loan through Small Farmers Cooperative Bank and Agriculture Development Bank on the recommendation of Agriculture Knowledge Center.
There is a plan to provide interest free loan up to Rs. 100,000 to small farmers and above Rs. 1 million at three percent interest rate.
The state government has followed the formula of agricultural reform put forward by the Federal Minister for Agriculture and Livestock Development Ghanshyam Bhusal. Despite the announcement of Agriculture Minister Bhusal to provide loan at concessional rate at less than five percent, this arrangement was included in the budget. Bagmati Province is going to provide free and concessional agricultural loans to attract the youth in agricultural enterprises. The state agriculture ministry has received a budget ceiling of around Rs 4 billion.
The government will provide Rs. 20 per kg subsidy to seed farmers. Farmers who produce milk get Rs 3 per liter. Farmers are also attracted when they get subsidy after production.
Farmers engaged in animal husbandry and farming can pay only Rs 10 for an insurance premium of Rs 100. The government will pay the remaining Rs 90. There is a plan to create one block of agriculture and two pocket areas in each municipality.
Share This Via:
