Easy loans to help farmers diversify

Bhanu P Lohumi

Tribune News Service

Shimla, May 16

The Rs 1.63 lakh crore package for farmers, announced by Union Finance Minister Nirmala Sitharaman, will infuse a fresh lease of life in the farm sector in Himachal with more cash liquidity, better post-harvest management and free access to market.

The farm infra fund for farmer organisations, cooperative societies and start-ups will usher in a new era in agriculture, as 9.30 lakh of the total 9.61 lakh farmers are small and marginal and hold less than four hectares.

Strengthening agri cooperative societies will ensure better storage and marketing, construction of controlled-atmosphere stores, godowns and better post-harvest management.

Loans at low interest rates will help in expansion and diversification of farm activities, as farmers will be able to repay old loans and get new loans for organic farming, diversification to commercial and off-season vegetable cultivation and get global market for selling their produce, eliminating the middleman, said Agriculture Minister Ram Lal Markanda.

“The cultivation of herbal and medicinal plants is already on priority and Rs 4,000 crore for this sector will give a boost to farmers to switch over to herbal plant cultivation,” he added.

Agriculture contributes 12.73 per cent to the Gross State Domestic Product (GSDP). Over the years, the vegetable production has surpassed the foodgrains production and during 2019-20, the foodgrain production is pegged at 16.38 lakh MT while vegetable, potato and ginger production is higher at 16.56 lakh MT, 1.96 lakh MT and 34,000 MT.

Principal Secretary (Agriculture) Onkar Sharma said, “The guidelines are yet to be received and we will prepare a micro plan for implementing the various schemes under the package.”

Aimed at creating global competition which would lead to price stabilisation, inter-state movement for sale of produce would eliminate middlemen, increasing profit margins to farmers and problem of hoarding would be resolved, says former Director Agriculture JC Rana.

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BOX –

Farmers Land holding

6.70 lakh marginal Less than one hectare

1.75 lakh small Between 1 and 2 ha

85,000 small, medium Between 2 and 4 ha

28,000 medium Between 4 and 10 ha

3,000 big Above 10 ha

“The cultivation of herbal and medicinal plants is already on priority and Rs 4,000 crore for this sector will give a boost to farmers to switch over to herbal plants’ cultivation,” Ram Lal Markanda, Agriculture Minister