Easy loans to help farmers diversify

May 18 2020

The Rs 1.63 lakh crore package for farmers, announced by Union Finance Minister Nirmala Sitharaman, will infuse a fresh lease of life in the farm sector in Himachal with more cash liquidity, better post-harvest management and free access to market.

The infra fund for farmer organisations, cooperative societies and start-ups will usher in a new era in agriculture, as 9.30 lakh of the total 9.61 lakh farmers are small and marginal and hold less than four hectares.

Strengthening agri cooperative societies will ensure better storage and marketing, construction of controlled-atmosphere stores, godowns and better post-harvest management.

Loans at low interest rates will help in expansion and diversification of farm activities as farmers will be able to repay old and get new loans for organic farming. These will help diversification, off-season vegetable cultivation and get global market for selling their produce eliminating middleman, said Agriculture Minister Ram Lal Markanda.

“Cultivation of herbal and medicinal plants has already been priority and Rs 4,000 crore for this sector will give a boost to farmers to switch over to herbal plant cultivation," he added.

Agriculture contributes 12.73 per cent to the Gross State Domestic Product (GSDP). Over the years, the vegetable production has surpassed the foodgrains production and during 2019-20, the foodgrain production is pegged at 16.38 lakh MT while vegetable, potato and ginger production is higher at 16.56 lakh MT, 1.96 lakh MT and 34,000 MT.

Principal Secretary (Agriculture) Onkar Sharma said, "The guidelines are yet to be received and we will prepare a micro plan for implementing the various schemes under the package."

Aimed at creating global competition which would lead to price stabilisation, inter-state movement for sale of produce would eliminate middlemen, increasing profit margins of farmers and problem of hoarding would be resolved, says former Director Agriculture JC Rana.

Terming the stimulus as a future strategy, president, Himachal Kisan Sabha, Kuldep Tanwar said the farmers needed immediate relief through direct bank transfer. Curfew had restricted transportation, resulting in damage of flower and vegetable crops. Seven lakh families, who were dependent on crops of peas, cauliflower, mushroom and flower, were badly hit.

Farmers and landholdings

  • 6.70 lakh marginal farmers Land less than one hectare
  • 1.75 lakh small farmers Land between 1 and 2 ha
  • 85,000 small, medium farmers Land between 2 and 4 ha
  • 28,000 medium farmers Land between 4 and 10 ha
  • 3,000 big farmers Landholding above 10 ha


This news has not been edited by Apni Kheti staff but has been published by various news feeds

Source: The Tribune