At a time when agricultural loan waivers are making headlines, the BJP-led government in Assam has decided to launch three ambitious schemes aimed at extending monetary aid to farmers in the state. The initiatives are expected to cost the state over Rs. 1,000 crore.
The three schemes were part of the promises made by the Sarbananda Sonowal government in the state budget. "Assam has 27 lakh agricultural households spread across 26,000 villages, and they are covered by about 1,800 rural and semi-urban branches of commercial banks and regional rural banks.
However, the flow of much-needed agricultural credit to farmers tends to get clogged in a majority of the cases. This is why the state cabinet has approved the Assam Farmers Credit Subsidy Scheme, under which the government will deposit 25% of the total loan amount paid by farmers this financial year.
The maximum limit is Rs. 25,000," said Assam Finance Minister Himanta Biswa Sarma.
"This scheme will cover four lakh farmers, involving a financial outgo of Rs. 500 crore," he claimed, adding that the schemes will be tweaked for small tea and rubber growers.