The Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, has said he would request the Prime Minister and the Union Finance Minister to increase the interest subvention for the co-operative societies in the State from 1.5 per cent to 2 per cent.
This is aimed at reducing the interest rate on crop loans given to farmers while increasing the refinance percentage of Nabard from 45 per cent to 70 per cent.
Following a review meeting of the functioning of the co-operative department with the State Minister for Cooperation, Mr K. Venkata Krishna Reddy, and other officials including representatives of Nabard, the Chief Minister felt the co-operative societies need to be strengthened and they, in turn, will play a role in instilling confidence among the farmers and members of the society.
To meet the increased paddy production in the State and to ensure MSP to farmers, proposals were being formulated to construct godowns with a capacity of 18 lakh tonnes through Nabard-RIDF (Rural Infrastructure Development Fund) funds with an outlay of Rs 800 crore, the Chief Minister said.
The RBI has issued licences to 20 DCCBs (District Central Co-operative Banks) in the State. Licences for two DCCBs of Srikakulam and Visakhapatnam would also be issued by March next year.
The statement said Nabard has fixed a target to provide Rs 2,600 crore for crop loans during 2011-12 as against the last year's disbursal of Rs 2,180 crore.
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