Dikhyaa Mohanty 
The Odisha Cabinet cleared a provision of Rs. 5700 crore on Friday for the execution of a State sector program called “Interest Subsidy-Subvention,” under which farmers will have access to interest-free crop loans up to Rs. 1 lakh. The 2% interest rate for agricultural loans above Rs. 1 lakh to Rs. 3 lakh was determined at the Cabinet meeting presided over by Chief Minister Naveen Patnaik. From April 1, 2022, these interest rates would be retroactively applied.
Prior until this, KALIA (Krushak Assistance for Livelihood and Income Augmentation), the State’s main program for farmers, offered interest-free crop loans up to a maximum of Rs. 50000. The Odisha Cabinet cleared a provision of Rs. 5700 crore on Friday for the execution of a State sector program called “Interest Subsidy-Subvention,” under which farmers will have access to interest-free crop loans up to Rs. 1 lakh. The 2% interest rate for agricultural loans above Rs. 1 lakh to Rs. 3 lakh was determined at the Cabinet meeting presided over by Chief Minister Naveen Patnaik. From April 1, 2022, these interest rates would be retroactively applied.
Prior until this, KALIA (Krushak Assistance for Livelihood and Income Augmentation), the State’s main program for farmers, offered interest-free crop loans up to a maximum of Rs. 50000. About 32.43 lakh small and marginal farmers received crop loans from cooperative banks and Primary Agricultural Cooperative Societies (PACS) during the 2022–2023 fiscal year, at an interest rate of 0% per annum on loans up to Rs. “The State is paying interest subsidy or subvention to the cooperative banks and PACS in order to make up for losses experienced by those involved in offering agricultural loans that are mandated by the government. This has been made possible by the Cabinet’s clearance of Rs. 5700 crore, according to a senior government official.
From 2023–2027, the cooperative banks’ or PACS’ interest subsidy-subvention will be in effect, ensuring that farmers have access to sufficient credit at reasonable rates. According to the Cabinet note, Odisha is an agrarian state where increasing production and productivity in agriculture can only be done by directing money to be invested in agricultural endeavors.
