A recent press report said that Maharashtra Government has planned to extend the crop loan limit to Rs. 1 lakh from Rs 50,000 earlier under zero per cent interest rate scheme. Reports said that the decision was taken at the weekly Cabinet meeting chaired by Chief Minister Mr. Prithviraj Chavan. He said that the extension of the limit will help 32 lakh farmers in the state.
He added saying that under Dr Punjabrao Deshmukh Crop Subsidy Scheme, farmers got crop loan up to Rs 50,000 at zero per cent interest, while loan up to Rs 3 lakh attracted 2 per cent rate. Now farmers availing crop loans up to Rs 1 lakh will not have to pay any interest.
Mr. Prithviraj Chavan said that there will not be any change interest of Rs 3 lakh loan. He said that a provision of Rs 1.24 crore has been made for this purpose. He also mentioned that sugarcane production had increased in 2009-10 because of good rains in October and November, leading to the extension of crushing season till June 2010.
The official reported that the heavy rains in Solapur, Satara and Pune districts during the crushing season caused problems for sugarcane cutting and transportation.