The National Cooperative Development Corporation (NCDC) has taken a significant step towards transforming India’s agricultural landscape by announcing revised interest rates under the Central Sector Scheme to strengthen Cooperative Sugar Mills (CSMs).
This initiative is a part of the vision of Prime Minister Narendra Modi to enhance the role of cooperatives in driving rural and agricultural development, says the NCDC in a release.
Under the new rates, working capital loans will now be available at 8%, while term loans will be offered at 8.5%. These competitive rates aim to reduce the financial burden on sugar cooperatives, enabling them to enhance operational efficiency and make strategic investments.
With over 5 crore farmers directly connected to these cooperatives, the move is expected to provide a major boost to their livelihoods, offering stability and opportunities for growth.
The sugar industry holds a crucial position in India’s agricultural economy, contributing significantly to rural employment and income generation. The financial support provided under the revised scheme will help cooperative sugar mills modernize their infrastructure, adopt advanced technologies, and implement sustainable practices. This, in turn, will improve productivity and ensure fair returns for farmers while maintaining stable sugar prices for consumers.
As a leading development financial institution under the Ministry of Cooperation, the NCDC has consistently supported the cooperative movement across various sectors. This initiative further reinforces its commitment to empowering cooperatives and promoting inclusive growth in agriculture.
By reducing interest rates, the NCDC is facilitating greater access to affordable credit for sugar cooperatives, which will have a cascading effect on the rural economy.
The revised interest rates underline the government’s focus on strengthening farmer-centric policies and fostering the growth of self-reliant cooperatives. By integrating financial support with long-term development objectives, the scheme not only drives the transformation of the sugar industry but also contributes to the broader vision of “Aatmanirbhar Bharat.”
This proactive measure is set to elevate the role of cooperatives as key drivers of economic progress and social welfare in India, claimed the release.