Latest news with #ModifiedInterestSubventionScheme
Mint
6 days ago
- Business
- Mint
Current agri loans over ₹28 lakh crore, but no waiver plan: Govt
The Centre has informed that agricultural loans worth over ₹ 28.5 lakh crore are outstanding but ruled out any plans for a waiver, minister of state in the ministry of finance Pankaj Chaudhary said in response to a question in Lok Sabha on Monday. Responding to Parliamentary questions by Lok Sabha MPs Supriya Sule (Nationalist Congress Party – Sharadchandra Pawar, Maharashtra), Hanuman Beniwal (Rashtriya Loktantrik Party, Rajasthan) and others, the Ministry of Finance informed Monday that outstanding agricultural loans stood at ₹ 28,50,779.43 crore as of March 31, 2025. These are due from 1,762.96 lakh accounts. 'No proposal to waive off the outstanding agricultural loans, is under consideration with Union Government,' the government said. Meanwhile, it is important to note that farmer loans are different from other categories of lending such as personal loans but lately the stance of cooperative banks to insist on credit score for approval of loans has rattled farmers no end. Read this Livemint for details on this. However, it added that several measures have been taken 'to provide relief and to improve the economic conditions of the farmers which inter-alia includes timely and adequate credit through Kisan Credit Card (KCC) under which crop loan up to ₹ 3 lakh is provided at subsidized interest rates under the Modified Interest Subvention Scheme (MISS) with additional incentives for timely repayment, fixation of progressively increased agricultural credit target, issuance of revised Priority Sector Lending guidelines to ensure improved credit flow to the agricultural sector etc.' The top five states in terms of outstanding agricultural loans are Tamil Nadu: ₹ 4,03,367 crore; Andhra Pradesh: ₹ 3,08,716 crore; Maharashtra: ₹ 2,60,799 crore; Uttar Pradesh: ₹ 2,28,560 crore; Karnataka: ₹ 2,22,301 crore. State Loans ( ₹ crore) Rajasthan 1,87,322 MP 1,62,385 Kerala 1,52,198 Telangana 1,44,346 Gujarat 1,44,330 Punjab 1,04,353 (Source: Other states with dues in excess of ₹ 1 lakh crore are Rajasthan: ₹ 1,87,322 crore; Madhya Pradesh: ₹ 1,62,385 crore; Kerala: ₹ 1,52,198 crore; Telangana: ₹ 1,44,346 crore; Gujarat: ₹ 1,44,330 crore; Punjab: ₹ 1,04,353 crore. Apart from Sule and Beniwal, the questions were put up by NCP-SP MPs from Maharashtra: Bhaskar Murlidhar Bhagare, Nilesh Dnyandev Lanke, Mohite Patil Dhairyasheel Rajsinh, Dr Amol Ramsing Kolhe, and Bajrang Manohar Sonwane, Shiv Sena (Uddhav Balasaheb Thackrey) MP from Maharashtra Sanjay Dina Patil, and Congress MP, Prof Varsha Eknath Gaikwad, also from Maharashtra. The MPs had also asked 'whether there is any correlation found between outstanding agricultural loans and incidence of farmer suicides in states like Maharashtra and if so, the data available with the Government on such cases during the last five years.' The government said that the National Crime Records Bureau (NCRB) publication 'Accidental Deaths and Suicides in India' is available till the year 2022 but that it does not specify separate reasons for farmer suicides. The MPs had also asked 'whether any specific categories of farmers marginal, small, tenant, SC/ST are more burdened with outstanding loans and if so, the details thereof' to which the government said that 'NABARD All India Rural Financial Inclusion Survey (NAFIS) for the period of 2021-2022 indicates a generally positive relationship between landholding size and household indebtedness, with the proportion of indebted households increasing as land size increases, up to 1 hectare. Beyond this threshold, a marginal decline in the incidence of indebtedness is observed among households with larger landholdings.' Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Indian Express
6 days ago
- Business
- Indian Express
Outstanding agri loans cross Rs 28 lakh crore, Centre says no waiver plan
The Centre has informed that agricultural loans worth over ₹28.5 lakh crore are outstanding — but ruled out any plans for a waiver. Responding to Parliamentary questions by Lok Sabha MPs Supriya Sule (Nationalist Congress Party – Sharadchandra Pawar, Maharashtra), Hanuman Beniwal (Rashtriya Loktantrik Party, Rajasthan) and others, the Ministry of Finance informed Monday that outstanding agricultural loans stood at Rs 28,50,779.43 crore as of March 31, 2025. These are due from 1,762.96 lakh accounts. 'No proposal to waive off the outstanding agricultural loans, is under consideration with Union Government,' the government said. However, it added that several measures have been taken 'to provide relief and to improve the economic conditions of the farmers which inter-alia includes timely and adequate credit through Kisan Credit Card (KCC) under which crop loan up to Rs 3 lakh is provided at subsidized interest rates under the Modified Interest Subvention Scheme (MISS) with additional incentives for timely repayment, fixation of progressively increased agricultural credit target, issuance of revised Priority Sector Lending guidelines to ensure improved credit flow to the agricultural sector etc.' The top five states in terms of outstanding agricultural loans are Tamil Nadu: Rs 4,03,367 crore; Andhra Pradesh: Rs 3,08,716 crore; Maharashtra: Rs 2,60,799 crore; Uttar Pradesh: Rs 2,28,560 crore; Karnataka: Rs 2,22,301 crore. Other states with dues in excess of Rs 1 lakh crore are Rajasthan: Rs 1,87,322 crore; Madhya Pradesh: Rs 1,62,385 crore; Kerala: Rs 1,52,198 crore; Telangana: Rs 1,44,346 crore; Gujarat: Rs 1,44,330 crore; Punjab: Rs 1,04,353 crore. Apart from Sule and Beniwal, the questions were put up by NCP-SP MPs from Maharashtra: Bhaskar Murlidhar Bhagare, Nilesh Dnyandev Lanke, Mohite Patil Dhairyasheel Rajsinh, Dr Amol Ramsing Kolhe, and Bajrang Manohar Sonwane, Shiv Sena (Uddhav Balasaheb Thackrey) MP from Maharashtra Sanjay Dina Patil, and Congress MP, Prof Varsha Eknath Gaikwad, also from Maharashtra. The MPs had also asked 'whether there is any correlation found between outstanding agricultural loans and incidence of farmer suicides in states like Maharashtra and if so, the data available with the Government on such cases during the last five years.' The government said that the National Crime Records Bureau (NCRB) publication 'Accidental Deaths and Suicides in India' is available till the year 2022 but that it does not specify separate reasons for farmer suicides. The MPs had also asked 'whether any specific categories of farmers marginal, small, tenant, SC/ST are more burdened with outstanding loans and if so, the details thereof' to which the government said that 'NABARD All India Rural Financial Inclusion Survey (NAFIS) for the period of 2021-2022 indicates a generally positive relationship between landholding size and household indebtedness, with the proportion of indebted households increasing as land size increases, up to 1 hectare. Beyond this threshold, a marginal decline in the incidence of indebtedness is observed among households with larger landholdings.' Beniwal said, 'The BJP government, which falsely claims to protect farmers' interests, has once again refused in the Lok Sabha to waive the outstanding agricultural loans of farmers in Rajasthan and other states across the country.' 'The continuous increase in farmers' loans exposes the falsehood of all those claims by the government about the upliftment and welfare of farmers. The details of outstanding agricultural loans in different states of the country reveal a grim situation. Today, the government is saying that it is trying to provide relief to farmers by issuing KCC. Is merely providing loans equivalent to giving relief to farmers?' he said, asking Prime Minister Narendra Modi, 'to formulate a scheme to completely waive the agricultural loans of farmers in Rajasthan and across the country to strengthen the economic condition of the nation's farmers.' Sule and some other Maha Vikas Aghadi MPs also met Union Agriculture Minister Shivraj Singh Chouhan on Tuesday where they apprised him of various issues and also complained about Maharashtra Agriculture minister Manikrao Kokate, recently caught playing rummy in the Assembly, over his 'anti-farmer' stance and demanded his resignation and appointment of a 'sensitive Agriculture Minister who understands the issues of farmers.'
India Gazette
29-05-2025
- Business
- India Gazette
"Historic day as scientists step out of labs to share research directly with farmers", says Agriculture Minister Chouhan
Puri (Odisha) [India], May 29 (ANI): Union Agriculture Minister Shivraj Singh Chouhan on Thursday hailed scientists stepping out of labs to share new agricultural research directly with farmers, emphasising practical implementation. The government has also extended the Modified Interest Subvention Scheme to provide financial support to farmers, marking a significant step toward boosting agricultural productivity and farmer welfare. Speaking to media persons, Chouhan said, 'It is a historic day for the country as the scientists leaving their labs are going to farmers to inform them about new research and agricultural developments. Knowledge will not remain in labs but will be implemented on the ground.' 'Farmers, the Central Agriculture Ministry, the state department, and agricultural universities work together to ensure production the Centre and the Cabinet extended the Modified Interest Subvention Scheme in the interest of farmers,' he told reporters. Earlier, on Wednesday, the Union Cabinet approved the continuation of the interest subvention component under the Modified Interest Subvention Scheme (MISS) for farmers for the financial year 2025-26 and approved the required fund arrangements. It is a Central Sector Scheme that ensures the availability of short-term credit to farmers at an affordable interest rate through the Kisan Credit Card (KCC). Under the Scheme, farmers received short-term loans of up to Rs 3 lakh through Kisan Credit Cards (KCC) at a subsidised interest rate of 7 per cent, with a 1.5 per cent interest subvention provided to eligible lending institutions. Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3 per cent as a Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 per cent. Overall agricultural credit flow also rose from Rs 7.3 lakh crore in 2013-14 to Rs 25.49 lakh crore in 2023-24. 'The Cabinet's decision reinforces the Government's unwavering commitment to doubling farmers' income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access,' the statement added. (ANI)
Hans India
29-05-2025
- Business
- Hans India
Bonanza For Farmers: Centre hikes MSP for Kharif crops, extends low-interest loans
New Delhi: The Union Cabinet on Wednesday approved a hike in minimum support prices (MSP) for 14 Kharif crops for the 2025-26 marketing season. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. Union Minister Ashwini Vaishnaw said the MSP for paddy has been increased by Rs 69 per quintal, setting the new rate at Rs 2,369 for the season. Paddy (Grade A) will now fetch Rs 2,389 per quintal. The highest jump in MSP has been recommended for nigerseed, which sees an increase of Rs 820 per quintal. This is followed by ragi (Rs 596), cotton (Rs 589), and sesamum (Rs 579). Maize will now have an MSP of Rs 2,400, up from Rs 2,225. Among oilseeds, the MSP for groundnut has been increased by Rs 480, sunflower seed by Rs 441, and soybean by Rs pulses, the MSP for tur (arhar) and moong has been increased by Rs 450 and Rs 86, respectively, while urad has seen a hike of Rs 400. These adjustments are part of the government's broader effort to support agricultural incomes and reduce rural distress. The revision comes ahead of the monsoon sowing season and is expected to influence crop choices among farmers. The MSP serves as a safety net for farmers, ensuring that they get a minimum price for their produce, even if market prices fall. The changes will be effective from the upcoming Kharif season, which begins with the onset of the monsoon in June. Continuation of the Modified Interest Subvention Scheme (MISS) The Union Cabinet also approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26. The scheme will continue with the existing 1.5% interest subvention for short-term loans provided to farmers. MISS is a central sector scheme that ensures affordable credit for farmers through the Kisan Credit Card (KCC). Under the scheme, farmers can get short-term loans of up to Rs3 lakh at a 7% interest rate. Out of this, 1.5% is subsidised by the government, making the loan cheaper for lending banks and institutions. Additionally, farmers who repay their loans on time are eligible for a 3% Prompt Repayment Incentive (PRI). This lowers their effective interest rate to just 4%. For those taking loans specifically for animal husbandry or fisheries, the benefit is applicable up to Rs 2 lakh. No changes have been made to the structure of the scheme. It will continue as is, helping more than 7.75 crore KCC account holders across the country. According to the government, continuing the support is crucial for keeping up the flow of institutional credit to the agriculture sector, especially for small and marginal farmers. Over the years, credit through KCC has grown from Rs 4.26 lakh crore in 2014 to Rs 10.05 lakh crore by December 2024. The overall agriculture credit flow increased from Rs 7.3 lakh crore in 2013-14 to Rs 25.49 lakh crore in 2023-24. To make the process more efficient, the government also launched the Kisan Rin Portal in August 2023, which has made claim processing faster and more transparent.
India Gazette
28-05-2025
- Business
- India Gazette
Centre extends interest subvention scheme for farmers by another year
New Delhi [India], May 28 (ANI): The Union Cabinet on Wednesday approved the continuation of the interest subvention component under the Modified Interest Subvention Scheme (MISS) for farmers for the financial year 2025-26, and approved required fund arrangements. It is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through Kisan Credit card (KCC). Under the Scheme: Farmers received short-term loans of up to Rs 3 lakh through Kisan Credit Cards (KCC) at a subsidized interest rate of 7 per cent, with 1.5 per cent interest subvention provided to eligible lending institutions. Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3 per cent as Prompt Repayment Incentive (PRI) effectively reducing their interest rate on KCC loans to 4 per cent. For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to Rs 2 lakh. No changes have been proposed in the structure or other components of the scheme by the Cabinet. 'There are more than 7.75 crores of KCC accounts in the country. The continuation of this support is critical to sustaining the flow of institutional credit to agriculture, which is vital for enhancing productivity and ensuring financial inclusion for small and marginal farmers,' the government said in a statement. Institutional credit disbursement through KCC increased from Rs 4.26 lakh crore in 2014 to Rs 10.05 lakh crore by December 2024. Overall agricultural credit flow also rose from Rs 7.3 lakh crore in 2013-14 to Rs 25.49 lakh crore in 2023-24. 'The Cabinet's decision reinforces the Government's unwavering commitment to doubling farmers' income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access,' the statement added. (ANI)
