Uttar Pradesh: Jittery over Rahul’s impact on the farmers in Uttar Pradesh, Mayawti government has come up with sops for voters in the face of forthcoming Assembly elections in the state.

In order to woo the farmers, the BSP in UP has proposed to give crop loans to the farmers at a nominal interest rate of 3 percent in the current fiscal. A meeting which took place on Monday under the chairmanship of Chief Minister Mayawati has approved the proposal.

Before this, the Madhya Pradesh government had made a provision of providing loans to farmers at 1 per cent interest rate from the next financial year.

Under the Cooperative Credit and Bank Plan, the loan will be provided through Primary Agricultural Cooperative Society (PACS) for current financial year 2011-12

In 2011-12 state budget, Rs 42.20 crore has been earmarked for rebate which will put a burden on the state exchequer.

In the meeting a decision was taken that the farmers will be provided loans up to Rs 3 lakh on 7 percent interest.

If the farmers repay loan installments in time, they will be given 3 percent subsidy by the Central government and 1 percent will be waived by the state government. So, the effective rate of interest on the loan will be 3 percent.

The total loan distribution in 2011-12 is expected to be Rs 4,000 crore, a 22.58 percent increase in comparison to the last financial year.


(JPN/Bureau)