Andhra to seek cut in interest on crop loans

HYDERABAD: Chief minister N Kiran Kumar Reddy will request prime minister Manmohan Singh and Union finance minister Pranab Mukherjee to increase the interest subvention to cooperative societies in the state from 1.5 per cent to 2 per cent, reduce the interest rate on crop loans given to farmers and increase NABARD's refinance percentage to 70 per cent.At a meeting held with officials on Friday to review the functioning of the cooperative department, the chief minister felt an urgent need on the part of the cooperative societies to instil confidence in farmers.“Cooperative societies should be strengthened on the lines of the Mulkanoor Society where all the needs of the farmers are met under ‘one-stop shop' policy. Setting up of agro service centres, construction of godowns to store farm produce, supply of fertilisers and seeds to farmers should be done under one roof,” he said.He asked officials to initiate steps to increase the loan recovery rate from 83.26 pc and to prepare schemes to utilise subsidised loans from NABARD.In view of the increase in the paddy production and to ensure MSP to farmers, proposals are being formulated to construct godowns of the capacity to store 18 lakh tonnes with NABARD-RIDF funds to the tune of Rs 800 crore, Reddy said.