Government launches Rs 1,000 crore credit guarantee scheme to increase farmers’ income

Many schemes are being run by the Central Government to increase the income of farmers and improve their economic condition. In this direction, the Central Government has launched a credit guarantee scheme of Rs 1,000 crore on 16 December 2024. The objective of this scheme is to provide easy and convenient post-harvest loans to the farmers.

Objective and Benefits of the Scheme

The main objective of this Credit Guarantee Scheme is to remove the hesitation faced by banks in giving loans against Electronic Negotiable Warehouse Receipt (E-NWR) issued from the repository registered by the Warehouse Development and Regulatory Authority (WDRA). With this, farmers will get the benefit of getting fair price for their crops and storage facilities.

What did the ministers say on the occasion of launching?

Launching the scheme, Food and Consumer Affairs Minister Pralhad Joshi said:

“We have provided a fund of Rs 1,000 crore to encourage banks to give loans. “The objective is to motivate banks to adopt a liberal approach.”

Food Secretary Sanjeev Chopra said that at present out of the total agricultural loan of Rs 21 lakh crore, post-harvest loan is only Rs 40,000 crore. At present, the loan amount under E-NWR is only Rs 4,000 crore.

goals for the next 10 years

Sanjeev Chopra expressed hope that the post-harvest loan figure will increase to Rs 5.5 lakh crore in the next 10 years. He said that this goal is possible only through the collective efforts of the banking and warehousing sector.

Important points and tips

1. Streamlined use of e-Kisan Produce Fund platform:
   • There is a need to make this platform more effective so that farmers can easily avail loans.
2. awareness campaign:
   • It is important to increase awareness about finance guarantee among farmers.
3. Review of Depository Fees:
   • Reducing fees for farmers should be considered.
4. Increasing warehouse registration:
   • There is a need to further increase the existing number of 5,800 warehouses.

Dignitaries present at the event

• Minister of State for Food and Consumer Affairs B.L. Varma
• Nimuben Jayantibhai Bambhaniya
• WDRA Chairperson Anita Praveen

All of them participated in the program and expressed their commitment to make this scheme successful in the interest of farmers.