Patna: (ABN) The government has taken a significant step to provide cheap agricultural loans to farmers and encourage modern farming. In August, a memorandum of understanding was signed between the Department of Agriculture and NABARD in the presence of Bihar's Agriculture Minister Mr. Ram Krupal Yadav, under the subsidy scheme at 1% interest. NABARD's Chief General Manager Mr. Gautam Kumar Singh was also present on the occasion. This agreement is a decisive step towards providing additional interest relief to the state's farmers for the financial year 2025-26, which will reduce the debt burden on farmers, increase access to institutional credit, and give a new impetus to investment, production, and income in the agricultural sector.

The Memorandum of Understanding (MoU) was signed by Mr. Surabhi Suman Yadav, Director of Agriculture, Bihar, Patna, Mr. Sushil Kumar, Joint Director (Statistics), Headquarters, Bihar, Patna, and Mr. Washid Iqbal, Assistant Director (Statistics), Bihar, Patna, Prasad, Singh, and Prasad Department, A. Deputy General Manager, Mr. Vijay Kumar, Assistant General Manager, and Mr. Satok Sateekam Deota, Assistant Manager, on behalf of NABARD.

In addition to the 3% interest subsidy on agricultural loans provided by the Government of India, a 1% interest subsidy is payable under the state scheme. Under the state scheme, an arrangement has been made to provide a 1% interest subsidy on crop loans/farmer credit card loans/short-term agricultural production loans up to ₹3 lakh from commercial banks, regional rural banks/cooperative banks to the state's farmers. The benefits of the scheme will be available only to those farmers who make loan repayments within the stipulated period.

The objective of the scheme is to reduce the burden of interest on agricultural loans and encourage farmers to take institutional loans. As a result of this program, farmers will be able to invest in seeds, fertilizers, pesticides, irrigation, etc., to adopt modern agricultural techniques, which will increase agricultural production.

NABARD is the designated state agency to implement the scheme. The state government is providing ₹5 crore for 1% interest subsidy on agricultural loans for the financial year 2025-26. Farmers are provided with agricultural loans through the Kisan Credit Card.

Respected Agriculture Minister Mr. Ram Krupal Yadav expressed confidence that the 1% interest subsidy scheme will work for the financial promotion of the state's farmers and encourage them to access institutional credit in a timely manner. This initiative will enable farmers to invest in better seeds, fertilizers, irrigation, agricultural mechanization, and modern technologies, which will ensure a sustainable increase in productivity, quality, and income. The scheme will be implemented with transparency and in a timely manner with the cooperation of NABARD. This agreement will prove to be a significant milestone in the Bihar government's farmer-friendly policies, financial inclusion, and self-reliant agriculture, providing a sustainable foundation for strengthening the state's agricultural economy and rural prosperity.