Boosting Farmers' Finances: New Credit Scheme Launched

Union Food Minister Pralhad Joshi unveiled a Rs 1,000 crore credit guarantee scheme designed to increase post-harvest loan accessibility for farmers. By leveraging electronic warehouse receipts, the initiative seeks to encourage banks to adopt a more liberal lending approach, aiming to expand agricultural financing significantly over the next decade.

Union Food Minister Pralhad Joshi on Monday introduced a groundbreaking Rs 1,000 crore credit guarantee scheme aimed at easing farmers' access to post-harvest loans. By utilizing electronic warehouse receipts, the initiative is designed to overcome banks' hesitance in lending against these receipts.

The credit initiative is supported by a significant corpus fund intended to motivate banks to lend more liberally. Food Secretary Sanjeev Chopra highlighted that current post-harvest lending is just Rs 40,000 crore of the total Rs 21 lakh crore in agricultural loans, with Rs 4,000 crore against electronic receipts. The new goal is to expand this to Rs 5.5 lakh crore in the next decade.

The scheme also focuses on enhancing the e-Kisan Upaj Nidhi platform, raising farmer awareness about pledge financing, and increasing warehouse registrations. Key figures present at the launch included ministers of state B L Verma, Nimuben Jayantibhai Bambhaniya, and WDRA Chairperson Anita Praveen.

(With inputs from agencies.)