In a significant move to support the agricultural community, the Odisha government has declared that it will provide free crop insurance to all farmers in the state for the next three years. The announcement was made by Cooperation Minister Atanu Sabyasachi Nayak after a thorough review of the department by Chief Minister Naveen Patnaik.
Under this new initiative, the Cooperation Department will bear the premium of the insurance coverage from the upcoming 2023 Kharif season until the 2025-26 Rabi season. This pioneering step makes Odisha the first state in the country to offer free crop insurance to its farmers, showcasing the government's commitment to the welfare of agricultural workers.
Minister Nayak also highlighted that the department has been actively providing short-term agricultural loans to farmers at low-interest rates. As part of their election promises, the state government has now increased the interest-free loan cap from Rs 50,000 to Rs 1 lakh. This substantial increase will facilitate farmers in accessing the necessary financial resources to support their agricultural activities effectively.
During the 2022-23 financial year, more than 7 lakh small and marginal farmers have already benefited from this scheme, receiving loans totaling Rs 16,683.57 crore. These loans have played a crucial role in empowering farmers to invest in their farming operations and enhance productivity.
Additionally, the government has taken measures to strengthen the agricultural credit system by establishing 1,451 new Primary Agricultural Co-operative Societies (PACS). These societies will further extend short-term loans to farmers, enabling a more comprehensive reach and accessibility of financial support across the agricultural sector.
This initiative is expected to have a positive impact on the lives of farmers, protecting them from the uncertainties associated with natural calamities and ensuring their continued progress in the agricultural sector.
