Bhubaneswar, June 29 (IANS) In a bid to ensure the timely availability of fertilisers and curb black-marketing, the Odisha government has approved a new scheme to provide 100 per cent interest subvention on cash credit loans availed by cooperative societies for advance stocking of fertilisers.
The scheme, titled “Interest Subvention on Cash Credit Loan for Prepositioning of Fertiliser,” will be implemented by the Cooperation Department from the current financial year following approval by the Finance Department.
According to an official statement, the decision was taken based on the recommendation of the Standing Finance Committee (SFC) chaired by the Commissioner-cum-Secretary of the Cooperation Department.
The scheme aims to address the financial burden faced by Primary Agricultural Cooperative Societies (PACS) and Large-sized Adivasi Multi-Purpose Cooperative Societies (LAMPCS), which procure and stock fertilisers well ahead of the Kharif and Rabi cropping seasons.
By bearing the entire interest cost on cash credit loans, the government seeks to enable these cooperatives to pre-position adequate fertiliser stocks without incurring additional financial liabilities.
The state government expects the initiative to increase the cooperative sector’s share in fertiliser distribution from the existing 25-30 per cent to around 60 per cent from the Kharif 2026 season. Officials believe the move will help improve the availability of fertilisers to farmers while reducing the scope for diversion and black-marketing through private trade channels.
The government has approved a financial outlay of Rs 42 crore for the five years from 2026-27 to 2030-31, with an initial allocation of Rs 5 crore for the current financial year. Around 2,700 grassroots cooperative societies, including PACS and LAMPCS, are expected to benefit under the scheme.
Eligible societies will be provided cash credit limits of up to Rs 10 lakh, depending on their operational requirements and capacity. The scheme also envisages promoting digital payments through QR code-based transactions at fertiliser sale points to improve transparency and streamline the distribution process.
According to the government, the initiative aims to ensure that fertilisers are available to farmers at government-notified prices in a timely and transparent manner, while strengthening the role of cooperative institutions in the state’s agricultural supply chain.
“By eliminating credit costs and modernising transactions, this farmer-centric intervention guarantees that essential agricultural inputs reach Odisha’s farmers at government-fixed prices, precisely when they need them most,” said the government.
–IANS
gyan/dan
