Assam government launches credit-linked subsidy scheme for farmers

GUWAHATI: The BJP-led Assam government on Monday launched a credit-linked subsidy scheme for farmers.
Chief minister Sarbananda Sonowal launched the scheme on Krishak Swahid Divas to honour the martyrdom of nearly 140 peasants who laid their lives in 1894 protesting against increasing land tax rate and other exploitation by the British Raj.

The state cabinet recently approved the Assam Farmers’ Credit Subsidy Scheme (AFCSS), 2018, under which the government will reimburse 25% of the loans taken or repaid by farmers this financial year, with a limit of Rs 25,000. This scheme will cover 4 lakh farmers and involve a financial outgo of Rs 500 crore.

Another is the Assam Farmers’ Interest Relief Scheme (AFIRS), which will extend support to farmers who are prompt in repaying their loans, by providing a 4% interest subvention on short-term crop loans up to Rs 2 lakh. This scheme will be aligned with the central government’s scheme under which prompt-paying farmers are given an interest subvention of 3%. With this, the effective rate of interest for a farmer in Assam accessing short-term crop loan up to Rs 2 lakh will be zero.

Sonowal said the state government was committed to empower the farming community.

The government is taking several measures for the economic and social development of farmers, he said.

He said the scheme was launched to help farmers double their income by 2022. He advocated that there should be a team consisting of farmers, bankers and government representatives to provide financial help and logistic support for farmers to enhance agricultural output and help the sector increase its contribution to GDP.