Odisha CM Naveen Patnaik urges PM to provide interest relief to farmers on Medium Term loans


Bhubaneswar: Chief Minister Shri Naveen Patnaik wrote to Prime Minister Narendra Modi for providing relief to farmers of Odisha who are affected by drought and pest attack. He sought keeping interest rate on Medium Term (Conversion) loans at par with crop loans and also extending interest incentive of 3% admissible on crop loans to the Medium Term (Conversion) loans.
Highlights of his letter:
• State Government has already initiated prompt measures to provide relief to affected farmers
• A special package has been announced for the farming community
• Crop loans advanced during Kharif 2017 season in affected areas to be converted to Medium Term (Conversion) loans
• Crop damage between 33% & 50% repayable in two years with 1 year moratorium
• Crop damage of 50% and more allowed maximum of 5 years with 1 year moratorium
• Union Government provides interest incentive at 3% which is not applicable in case of conversion of crop loans
• As a result, farmers have to pay high interest rate of 11.20%
• Moreover, interest subvention on such loans is not available
Chief Minister Shri Patnaik stated that when crop loans are converted into Medium Term loans, the interest rate should be at par with the crop loans. Incentive made available to prompt paying farmers should also be extended to Medium Term (Conversion) loans to help them tide over the serious crisis.