Sivaganga (Tamil Nadu), Oct : Union Finance Minister P Chidambaram on Sunday said that banks would disburse 7.5 lakh crore rupees as agriculture loan in this fiscal year
He also added that the interest for agriculture loan is only 7 per cent and interest subvention of 4 per cent is given to those who repay the loans.
Chidambaram said that Government is committed to give increased support price for food grains like paddy, wheat to farmers.
“Agriculture is the poorvikam (original vocation) of the country and if the farm sector did not prosper…then the country will not prosper. In the last ten years the minimum support price for paddy has been raised ten times,” he said at the inauguration of the 1459th branch of Vijaya Bank in Thayamangalam here.
Chidambaram urged farmers to avail bank loans, with the cheap rate of interest. He also emphasized on the need to increase food production and said that the agricultural sector had seen ‘excessive’ growth recently. (ANI)