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% and interest subvention of 4% 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 emphasised on the need to increase food production and said that the agricultural sector had seen 'excessive' growth recently.