New short-term credit scheme for farmers in Kerala

Loan, at 6.4% interest rate for one year, is only for agricultural purposes

The Ministry of Agriculture has come up with a short-term credit scheme for farmers who require funds to complete pending agricultural activities. All primary cooperative credit societies and the Kerala Gramin Bank will extend the loan support. The scheme is likely to be introduced next week. Officials of the department say the scheme will be available only for agricultural purpose for a period of one year. The interest rate has been fixed at 6.4%, which is lower than that of such schemes in the public and private sector banks. Farmers may contact Krishi Bhavans for assistance. Crop insurance schemes will be promoted among more farmers to deal with unexpected crop loss during the monsoon season. The comprehensive risk insurance policy will cover yield losses due to flood, pests, landslips, lightning, storm, hailstorm, and cyclone. Post-harvest losses within the specified period are also covered under the scheme, officials say.