Ensure easy loans for farmers at affordable rates: U.P. CM to cooperative dept officials

Hindustan Times

20-05-2025

Uttar Pradesh chief minister Yogi Adityanath has directed officials to boost the income and ensure economic empowerment of small and marginal farmers in the state through Mukhyamantri Krishak Samriddhi Yojana.
Chairing a review meeting of the cooperative department here on Monday, the CM said, 'Increasing the income of small and marginal farmers as well as ensuring transparency and efficiency in the implementation of the cooperative schemes should be top priorities of the department.'
The detailed framework of the ambitious Mukhyamantri Krishak Samriddhi Yojana was presented during the review meeting. Lauding the scheme as visionary and farmer-centric, Yogi called for active involvement of NABARD and cooperative banks in its effective implementation.
'The state government is continuously working to relieve farmers of debt, enhance agricultural productivity and promote self-reliance. Providing farmers with easy access to loans at affordable interest rates must be a key priority. The proposed scheme is expected to be a significant step toward achieving these goals,' he said.
The CM stressed the importance of timely and efficient execution of the schemes. He instructed officials to focus on expanding the loan distribution capacity of cooperative banks, modernising bank branches through financial support, and streamlining access to credit for farmers. A comprehensive proposal for the scheme should be prepared soon, Yogi said.
During the meeting, the CM also made a detailed review of the cooperative sector and told the officials to strengthen the role of cooperative institutions.
According to the data presented in the meeting, loan disbursement by the Uttar Pradesh Cooperative Bank Limited has grown from ₹9,190 crore in 2017 to ₹23,061 crore in 2025, with the bank recording a net profit of ₹100.24 crore.
During the same period, the total business of District Cooperative Banks rose from ₹28,349 crore to ₹41,234 crore, with a net profit of ₹162 crore.
Over the past eight years, crop loans amounting to ₹11,516 crore and long-term loans worth ₹393 crore have been distributed across the state. Additionally, 34.45 lakh metric tons of fertilisers were distributed, 25.53 lakh metric tons of paddy were procured, and 1.94 lakh metric tons of pulses and oilseeds were purchased.
Under the Agriculture Infrastructure Fund (AIF) scheme, 375 warehouses with a combined capacity of 37,500 metric tonnes have been constructed to enhance the state's storage capacity.
Additionally, since 2017, 1,060 warehouses with a total capacity of 1,17,350 metric tonnes have been developed under the Rashtriya Krishi Vikas Yojana (RKVY). The construction of 100 new warehouses is planned for 2025–26.
Furthermore, under the nation's largest grain storage scheme, warehouses with capacities ranging from 500 to 1,000 metric tonnes are proposed to be established at 24 B-PACS centres across 16 districts.
Highlighting the need for further expansion in storage infrastructure, the CM directed the officials to prepare a suitable policy to encourage private sector participation. He also instructed them to bring about comprehensive reforms in the functioning of Pradeshik Cooperative Federation (PCF) and ensure timely payments to rice millers.
To improve operational efficiency in the cooperative sector, the Yogi emphasised expediting the recruitment process for vacant banking and non-banking positions through IBPS and to ensure that cooperative institutions deliver services more efficiently and effectively.
A discussion on the involvement of M-PACS committees in commercial activities was also held in the meeting. The officers informed the CM that the committees had been integrated with services such as PDS, Jan Aushadhi Kendras, CSCs, PM Kisan Samman Kendras and procurement under MSP.
Under digital transformation scheme, computerization efforts are progressing in phases; 1,539 Multipurpose Primary Agricultural Credit Societies (M-PACS) committees are digitised in phase I, 1,523 in phase II and 2,624 in phase III.
Regarding cybersecurity, the officers said the Uttar Pradesh Cooperative Bank Limited and 50 district cooperative banks are being integrated with NABARD's CBS cloud platform, ensuring secure and streamlined banking operations.
The CM reiterated to make cooperative institutions self-reliant and farmers' access to technology and credit. Marketing of the products should be top priority of the state government. He asserted that policy reforms must continue with the ultimate goal of empowering and enriching Uttar Pradesh's farmers through cooperation.