The finance dept of the Odisha govt has rejected the proposal made by the dept of cooperation regarding further subvention to farmers. Experts say the rejection has foundation in reduced revenue earnings by the state govt.
However, the state govt has made a budget provision of Rs. 369 crore to make good the losses the cooperative credit structures in the state have suffered on account of giving short term loans to farmers.
Meanwhile the Odisha state cooperative bank aims to disburse Rs. 8000 crore as short term loans this fiscal. The cooperative credit bodies have so far disbursed loans of Rs. 4336 crore in the state. These credit bodies will further disburse Rs 3,800 crore for rabi crop.
Incidentally, the apex cooperative bank of Odisha had disbursed loans of Rs. 7090.27 crore to nearly three million farmers in the last fiscal. It needs particular mention that thousands of agriculture credit cooperative societies are helping the apex bank in credit extension to farmers.
