Chief Minister of Rajasthan on Friday announced the approval of loans to farmers at a rate of 3% by mortgaging their produce. A further grant of Rs. 50 crore has also been approved by the CM, for the Cooperative farmer welfare scheme every year.
While farmers will be charged 3% of the loan amount, the state government will be bearing 7% of the fund. This is higher than the previous rate of 2% borne by the government.
According to CM Ashok Gehlot, the approval of loans is a measure to provide a better value of the product to the farmers by keeping the yield intact.