With a view to increase the production, productivity
and income of the farming sector, Government is implementing through
State Governments the Rashtriya Krishi Vikas Yojana (RKVY), National
Food Security Mission (NFSM), National Horticulture Mission (NHM),
Integrated Scheme of Oilseeds, Pulses and Maize (ISOPOM), besides
others.
Under these schemes emphasis is given to easy and reliable access to inputs such as quality seeds, fertilizers, pesticides, irrigation, suitable technology, extension services, support infrastructure and innovative marketing system. Further, to ensure remunerative price, Government announces Minimum Support Price (MSP) for agricultural commodities every year. National Policy for Farmers, 2007 also has provisions to improve economic viability of farming.
In order to improve credit flow to agriculture sector, Government decided in June, 2004 to double flow of agriculture credit in three years with reference to base year 2003-04. Flow of agriculture credit has consistently exceeded the targets since 2003-04. To facilitate flow of credit to farmers and increase financial inclusion, Kisan Credit Cards (KCC) are being provided to farmers. From Kharif 2006-07, farmers are receiving crop loan up to principal amount of Rs. 3 lakh at 7% rate of interest. In addition, since 2009-10, Government has been providing 1% interest subvention to farmers who repay loans on time. This subvention was increased to 2% in 2010-11 and 3% in 2011-12. Thus, effective rate of interest on crop loan up to Rs.3 lakh for farmers who repay on time has come down to 4% per annum.
Under these schemes emphasis is given to easy and reliable access to inputs such as quality seeds, fertilizers, pesticides, irrigation, suitable technology, extension services, support infrastructure and innovative marketing system. Further, to ensure remunerative price, Government announces Minimum Support Price (MSP) for agricultural commodities every year. National Policy for Farmers, 2007 also has provisions to improve economic viability of farming.
In order to improve credit flow to agriculture sector, Government decided in June, 2004 to double flow of agriculture credit in three years with reference to base year 2003-04. Flow of agriculture credit has consistently exceeded the targets since 2003-04. To facilitate flow of credit to farmers and increase financial inclusion, Kisan Credit Cards (KCC) are being provided to farmers. From Kharif 2006-07, farmers are receiving crop loan up to principal amount of Rs. 3 lakh at 7% rate of interest. In addition, since 2009-10, Government has been providing 1% interest subvention to farmers who repay loans on time. This subvention was increased to 2% in 2010-11 and 3% in 2011-12. Thus, effective rate of interest on crop loan up to Rs.3 lakh for farmers who repay on time has come down to 4% per annum.
