Govt cuts subsidy to farmers under the KCC scheme

Farmers across the Sattari taluka have expressed concern over the State government's move to withdraw the 3% subsidy to farmers on the Kissan Credit Card (KCC) loan.

While this decision has affected the new farmers immediately as their loans interest rate have been hiked from 4% to 7%, the existing farmers will be subjected to the 7% interest rate on KCC loan in March 2018, when loans are renewed, say bank sources.

The KCC loan scheme is, at present, offered by all banks to provide financial support to farmers and many farmers from Sattari taluka have been availing of this KCC loan.

According to bank sources, the National Bank for Agriculture and Rural Development (NABARD) has initiated the KCC loan scheme at a 7% interest rate, to boost agriculture in the State. The Goa government had decided to offer a 3% subsidy on interest rate of the loan availed, leaving farmers in the State to pay the balance of 4% interest.

However, the bank sources said that the State government had stopped the 3% subsidy on the KCC for the past few months, leaving farmers with no option but to pay the entire 7% interest of KCC loan.

“This KCC loan scheme is a good facility by the NABARD and the subsidy by the State government has boosted the agriculture sector in the State,” said Sameer Govekar, a progressive farmer from Keri Sattari.

“Now, the interest on the KCC loan has been hiked and due to this, it has become difficult for farmers to avail of this loan facility,” he added. He also expressed concern over varying conditions imposed by different banks.

“One bank has been sanctioning a loan of Rs 3 lakh, but only releases Rs 2 lakh to the farmer and retains Rs 1 lakh as security deposit. Another bank provides the entire Rs 3 lakh loan, but insists on a security for the entire amount. Such different conditions only cause confusion and do not benefit the farmers,” said Govekar.

Another farmer, Gopal Gaonkar from Thane Village in Sattari, also expressed unhappiness over the Government decision on withdrawal of 3% subsidy on KCC loan and said KCC is the only loan scheme which can offer benefits to the farmer. And this thing would affect all farmers from Sattari taluka who have availed the loans. The Sattari Shetkari Farmers Association (SSFA) is planning to raise the issue.

Sattari Shetkari Farmers Association President Ashok Joshi questioned the government's decision to stop the 3% interest waiver and urged authorities to reconsider the decision.

Sattari Shetkari Farmers Association (SSFA) member Sufiyan Shaikh a progressive farmer from Velus village feared the State government's decision would surely harm the interests of farmers. “Our organisation will create an awareness regarding the matter and we will plan our future course of action shortly,” he said.