GUWAHATI: Assam government has introduced a slew of schemes that concurrently provides subsidy and zero-interest loans to farmers in a bid double their income in four years and more importantly, keep them in the banking system.
One of the schemes, Assam Farmers Credit Subsidy Scheme, has been launched this year to commemorate 125 years of the Patharughat farmers uprising, whereby 25 per cent of the loan taken by a farmer is either reimbursed (if the loan is already repaid) or otherwise paid by the state government with an upper limit of Rs 25,000.
The scheme will cover 27lakh agriculture households spread across 26,000 revenue villages in Assam with credits governed by 1800 bank branches.
Announcing this to reporters here on Wednesday, Assam finance minister, Himanta Biswa Sarma said that 2.62lakh farmer families who avail of short term KCC loans (upto Rs 2lakh) will be immediately benefitted from the scheme.
“The relief of 25 per cent will make it easier for the farmers to take loans from banks. The scheme may be an annual feature depending on its success. Apart from farmers, the scheme will also cover small tea growers, rubber planters through subsidy on working capital,” Sarma said.
Loans taken between April 1, 2018 and March 31, 2019 will be applicable under the scheme to be operational from January 2019.
The state government will bear Rs 500crore for the scheme.
“The second scheme, Assam Farmers Interest Relief Scheme, is a zero per cent interest scheme, where the state government will provide four per cent interest of a loan taken up to Rs 2lakh, while the remaining three per cent is paid by the Centre. If at all there is any withdrawal from the Centre to pay the 3 per cent, then the subvention from the Assam government will be 7 per cent. In other words, the state will ensure that the farmer does not pay any interest on loan,” the minister said.
The scheme will be open for standard (running) accounts with banks.
“The third scheme, Assam Farmers Incentive Scheme, will be a one-time relief for farmers who are out of the banking system, where the government will provide Rs 10,000 per farmer to clear an outstanding amount and avail further credit. The idea is to make an NPA account operational. This is a permanent scheme to help farmers repay loans and remain in the banking system,” Sarma said.
The government will create an escrow account and deposit Rs 1000crore with State Level Bankers’ Committees. “The schemes will be administered by the banks,” the minister informed.
Sarma said the government will under another scheme give Rs 5000 to all farmers as agriculture input subsidy, starting with 5lakh farmers who are registered in the first phase and the rest in the subsequent phases.
“Besides, 26,000 tractors under an operational scheme will be distributed in all the revenue villages with already 7,000 tractors distributed,” he said.
The state government also aims to double farmers’ income by 2020.
Tea garden workers
The minister also announced that under another scheme to keep tea garden workers in the banking system, additional Rs 2500 will be paid against the accounts opened by tea garden workers during demonetization.
“Under the Chah Bagicha Dhan Puraskar Mela, 7.21lakh accounts were opened in tea gardens during the demonetisation process in 752 tea gardens. For these, additional Rs 2,500 will be paid while Rs 5,000 will be paid to tea garden workers who had opened accounts prior to demonetisation. Besides, those workers who could not avail the amount because their accounts were not KYC compliant at that time will be provided Rs 5000,” Sarma said.