Fillip to cultivation in rabi season

Kakinada: National Bank for Agriculture and Rural Development (Nabard) has resolved to assist Primary Agriculture Cooperative Societies (PACS) in rural areas, to raise crops in the rabi season, by providing loans to District Cooperative Central banks (DCCBs).

The Nabard charges 4.5 per cent interest from these bodies for extending the assistance, in the current situation of cash crunch due to demonetisation, the assistance is expected to give a fillip to agriculture sector.

In East Godavari, DCCB has 50 branches and with 295 PACS spread in 58 mandals, things are looking bright for cultivation in the rabi season.

The PACS bodies extend agriculture loans to the tune of Rs 26,000 to Rs 29,000 per acre per crop season. The PACS bodies charge 7 per cent interest on these loons per acre subject to a maximum of Rs one lakh.

The Nabard on its part extends financial assistance charging 4.5 per cent interest from DCCB. The difference of 2.5 percent will benefit the PACS bodies through DCCB.

As far as the beneficiaries are concerned the Union government will extend 3 per cent rebate on prompt repayment of the loan within one year from the date of disbursement.

The State government offered to waive the remaining 4 per cent interest subjected to prompt repayments within one year period. This provides zero interest loans to the farmer. Speaking to The Hans India Nabard AGM, Dr KVS Prasad said that they would extend cashless loans to the farmers through PACS bodies, as all farmers including tenant farmers possess bank accounts. “We are waiting for the requisition from DCCB for quantum of assistance needed,” he added.