Kerala offers new short-term credit scheme for farmers

The Ministry of Agriculture, Kerala has introduced a short-term credit scheme for farmers who need money to finish off pending agricultural projects. The loan support would be provided by the primary cooperative credit societies as well as the Kerala Gramin Bank. The plan is expected to come into effect from next week.

The initiative, according to department officials, will only be available for agricultural purposes for a year. The interest rate has been set at 6.4 percent, which is lower than that offered by public and private sector banks for similar projects. Farmers can seek support from Krishi Bhavans.

Crop insurance schemes will be offered to more farmers in order to deal with crop losses that occur during the monsoon season. Flood, pests, landslides, lightning, storm, hailstorm, and cyclone are all covered under the complete risk insurance policy. Officials said the scheme also covers post-harvest losses within a certain timeframe.

Farmers' Interests

Meanwhile, in light of the COVID-19 situation and the challenges in marketing agriculture produce, the district's top farmers' organizations have urged for a modest increase in the credit limit. According to them, the three-lakh restriction on most low-interest financing schemes will not be an acceptable aid for farmers who have already begun large-scale farming on leased property.

Compensation for those who lost crops due to wild animal attacks or natural disasters has yet to be handled in many villages, according to the office-bearers. According to them, the department's request for online submission of such grievances is proving challenging for many farmers who do not have access to digital devices.