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Govt continues Interest subvention on short-term crop loans

The Union Cabinet  gave its approval for the following:

To continue interest subvention to Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Cooperatives Banks and NABARD to enable them to provide short-term crop loans up to Rs. 3 lakh to farmers at 7% p.a. during the year 2012-13.

To provide additional interest subvention of 3% p.a. to those farmers who repay on time, i.e. within one year of disbursement, their short-term crop loans taken during the year 2012-13.

To permit the release of Rs. 10,901 crore as interest subvention for 2012-13 of which Rs. 3267 crore subvention to NABARD for refinance to Cooperatives Banks and RRBs and Rs. 7634 crore to Public Sector Banks, RRBs & Cooperative Banks for subvention on their own funds.

To provide interest subvention to small and marginal farmers having Kisan Credit Card for loan against negotiable warehouse receipts for post harvest at 7% p.a. interest for a period of six months i.e. on the same rates as applicable for crop loans as given in the para (i) above.

To permit the release of Rs. 442 crore as interest subvention to small and marginal farmers having Kisan Credit Card against negotiable warehouse receipts, for post-harvest.

The Government of India has since 2006-07 been subsidizing short-term crop loans to farmers in order to ensure the availability of crop loans to farmers for loans upto Rs. 3 lakh at 7% p.a. This interest Subvention Scheme has been further continued for 2012-13 for PSBs,

RRBs and Cooperative Banks. In the year 2009-10, an additional subvention of 1% was provided to farmers who repay their loans on time. This has been increased from 2% in 2010-11 to 3% in 2011-12 and 2012-13. Thus, the effective rate of interest for such scheme for 2012-13 is Rs. 10,901 crore.

Banks have been consistently meeting the target set for agriculture credit flow in the past years. For the year 2012-13, the target for agricultural credit flow has been raised to Rs. 5,75,000 crore from Rs,4,75,000 crore in the year 2011-12.

Infocus

IIFL recommends 'Add' Jain Irrigation

IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends “Add ” Jain Irrigation.

According to IIFL report, Jain Irrigation’s FY12 annual report springs no major surprises, but reveals deterioration in key operating metrics consequent to the company’s stretched working capital position.

Jain’s stock price has corrected sharply post 1QFY13 results but may remain under pressure as the company passes through a painful period of transition for a few quarters, report stated. 
 
The report was published by IIFL’s Institutional Equities Research desk.

Domestic News

7.57bn man-days generated under MGNREGA: Govt

The Government today informed that under MGNREGA, during 2009-10 to 2011-12, a total of 757.09 crore persondays were generated and a total amount of Rs. 76126.76 crore was paid as wages to MGNREGA workers as reported by States and Union Territories.

This was stated by the Minister of State for Rural Development  Pradeep Jain in written reply to a question in the Rajya Sabha yesterday.

He said, as reported by States/ Union Territories, the total expenditure incurred under MGNREGA was Rs. 37, 905.23 crore in 2009-10, Rs. 39, 377.27 crore in 2010-11 and Rs. 38,034.70 crore in 2011-12.

Jain Irrigation announces fund raising plans

Cultivation of flowers on rise in India

Government supports institutionalize contract farming

 Rs. 745.51bn food subsidy for FY13: Govt

Parliamentary panel invites views on BIS Amendment Bill

Heavy rains on Monday leave parts of western India paralysed

Coffee Exports from India drops 5.3%

International News

Rice exports from India, Vietnam offset Thai shortfall, reports

Rice exports from India, Vietnam and Pakistan are offsetting a reduction in shipments from Thailand, which is selling less because of a government price-support program, according to the Asian Development Bank.

“Prices would have jacked up steeply were it not for the decision of India to remove its export ban on non-basmati rice,” Lourdes Adriano, a director at the bank, said in an
Internet-based briefing today. “Additionally, Vietnam and Pakistan exported rice, staving off the pressure on the price.”

Thailand may export about 7 million metric tons compared with an annual average of 10 million tons, she said, without specifying the year.

Wheat harvest drops in Australia

FAO Food Price Index holds steady