Govt. asks NABARD to disburse Rs 21K crore to farmers

TIL Desk/National/New Delhi/ Government has allowed NABARD to disburse Rs 21,000 crore to cash-starved farmers, helping them sow winter crops like wheat ahead of the sowing season, Economic Affairs Secretary Shaktikanta said today.

The government’s demonetisation move, which swept away 86 per cent of currency in circulation, has badly hit farmers leaving them without cash just ahead of the sowing season. Das said the National Bank for Agriculture and Rural Development (NABARD) will disburse the money to farm cooperatives for onward payments to farmers.

“NABARD, for the facility of agricultural operations in the current rabi season and especially for the benefit of farmers, has sanctioned a special limit of Rs 21,000 crore to district central cooperative banks,” he told reporters here. More than 40 per cent small and marginal farmers get crop loans from cooperative institutions, he said.

The move is aimed at easing liquidity crisis facing farmers who were left with very little cash to buy seeds and fertilizers for winter crops due to restrictions placed on bank withdrawals post demonetisation.