Union Food Minister launches Rs 1,000 crore loan guarantee scheme: The central government has taken a major initiative to ensure easy loans to farmers. Union Food Minister Pralhad Joshi has launched a loan guarantee scheme of Rs 1,000 crore. The scheme aims to overcome the reluctance of banks to lend to farmers against electronic negotiable warehouse receipts (e-NWR) registered by the Warehousing Development and Regulatory Authority.
A fund of Rs 1,000 crore established
Launching the scheme, Minister Pralhad Joshi said that we have set up a fund of Rs 1,000 crore to encourage banks to give loans after harvesting. This will simplify the access of farmers to loans and provide them more financial assistance.
Current status of post-harvest loans
Food Secretary Sanjeev Chopra said that at present a large part of agricultural loans goes for crop production, while loans for post-harvest operations are only Rs 40,000 crore. He said that loans under e-NWR are limited to only Rs 4,000 crore but a target has been set to increase it to Rs 5.5 lakh crore in the next 10 years.
Emphasis on increasing warehouse registration
He emphasized that this target is possible only with coordinated efforts of banking and warehousing sectors. The Secretary emphasized the need to increase awareness about guaranteed financing among farmers, streamlining the e-Kisan Upaj Nidhi online platform, reviewing depository charges and increasing the number of warehouse registrations from 5,800.
Participation of prominent personalities in the program
Minister of State for Food and Consumer Affairs B.L. Verma, Nimuben Jayantibhai Bambhaniya and WDRA Chairperson Anita Praveen were also present. This scheme will facilitate farmers in getting loans after storing their crops. This will not only improve their financial condition but will also strengthen the rural economy.