Bhubaneswar: The Odisha chief minister, Naveen Patnaik, Monday urged the prime minister to keep the medium term (conversion) loans at par with the crop loans and also extend the interest incentive of 3% unmissable on crop loans to the medium term (conversion) loans.
Patnaik, in letter to the prime minister, has stated that during the current Kharif season paddy cultivation in some parts of Odisha has got affected due to drought and pest attack resulting in crop loss in those areas. In order to help the farming community suffering from crop loss, the state government has announced a package and has decided to convert the crop loans into medium term (conversion) loans.
The Centre is providing interest incentives at 3% to the prompt repaying farmers in respect of crop loans, which is not available in case of conversion of such loans medium term loans, Patnaik has stated adding that the interest on the converted loans remain at a higher rate which is now 11.20 %. Similarly, the interest on crop loan is not subsidised as the interest subvention for the same is not available, he has pointed out in his letter.
The chief minister has urged the prime minister to intervene into the matter and extend the interest incentives to the medium term (conversion) loans in Odisha and also extend the interest incentives of 3% for the medium term loans too.