Sugarcane farmers to get full benefit of interest subsidy

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Registrar cooperative cane development societies / Cooperative Sugar Mills Societies Uttar Pradesh has directed the societies to implement revised scheme of, raising the demand on repayment of NABARD Loan, twice a year so that farmers can get full benefit of interest subsidy provided on timely repayment of  loan.

Prior to the implementation of this arrangement, farmers were getting  interest subsidy of 3.7% only applicable on the distribution of loan and the rest 4% subsidy which was applicable on the timely repayment of loan was not  available to the farmers, as the societies were raising the demand only once in a year, for recovery of loans. As the issue came to the knowledge of Registrar,  taking the bold decision, he issued the directions to all the cane development societies/sugar mill societies to raise the demand of Crop loan twice a year so that those farmers who wants to timely pay back the loan can get the full benefit of interest subsidy on repayment under NABARD scheme.

Since 1994 under the NABARD scheme the crop loan for agriculture inputs  like fertilizers, seeds, and insecticides etc. is being given by the cane development societies, Under this scheme, the societies distributes the loan to the member farmers for purchasing agricultural input like fertilizers, seeds and insecticide etc. as per their cash credit limit sanctioned by concerned District Cooperative Bank.

In the year 2011, to facilitate the farmers it was decided that if farmers timely repay the loan amount then an additional interest subsidy of 4% will be given to them , with the assistance of State Government and Government of  India. In cane development department the NABARD scheme is an operation in Eighteen (18) districts of Western and Central U.P. In year 2018-19 approximately 20 lakhs farmers have taken the crop loan of about Rs.185 crore  under the NABARD  scheme. On this amount if the demand is raised once a year , then the farmers will have to pay an interest of 10 crores , in case the demand is raised twice a year, then the farmers will have to pay only the interest of Rs. 5.5 crore in case  of timely repayment of loan. Thus the execution of the scheme will give a  direct benefit of Rs. 4.5 crores as interest subsidy to the farmers in year 2018-19.

In the old system the cane societies ware raising the demand on 1st  October for the loan amount distributed between 1st October to 30th September  and charging the interest rate of 7% from the farmers. Due to the system only the  farmers which were taking loan between 1st April to 30th September were getting the advantage of 4% subsidy on timely repayment of loan but the farmers who were taking the loan between 1st October to 31st March were not getting  the interest subsidy of 4% as the societies were not raising the demand timely.

In view of the facilitating the farmers, revised scheme has been applied and societies will raise demand on NABARD loan twice a year. for making necessary amendment in the bye- laws of society to implement the scheme , direction have been issued from the headquarter level.

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