Farmers in Uttar Pradesh to Get Cheaper Loans Under New Scheme

Key Highlights:

• UP govt to launch Mukhyamantri Krishak Samriddhi Yojana.

• Farmers to get long-term loans at 3–5% interest rate.

• CM Yogi directs fast proposal and NABARD involvement.

• ₹11,516 crore crop loan given since 2017.

• 100 new warehouses to be built by 2025–26.

In a major step towards supporting farmers, the Uttar Pradesh government is preparing to launch a new scheme that will offer agricultural loans at low interest rates. This new initiative, called Mukhyamantri Krishak Samriddhi Yojana, aims to increase farmers income and reduce their debt burden by giving them easy access to affordable loans.

Also Read: Special Government Scheme for Farmers: ₹13,800 Pension Every Year

What Is the Mukhyamantri Krishak Samriddhi Yojana?

The Mukhyamantri Krishak Samriddhi Yojana will be specially focused on helping small and marginal farmers. Under this scheme, long-term agricultural loans will be given at low interest rates so that farmers can invest more in farming and increase their crop production.

The scheme will be operated through the Cooperative Gram Vikas Bank, which receives loans from NABARD at around 8% interest. Currently, the bank distributes loans to farmers at 5% interest. With the help of the government's interest subsidy, farmers may be able to get loans at just 3% to 5% interest.

What Did CM Yogi Adityanath Say?

On May 19, Uttar Pradesh Chief Minister Yogi Adityanath held a review meeting with the Cooperative Department and gave instructions to:

• Prepare the proposal for the scheme quickly

• Include NABARD and cooperative banks in the implementation

• Increase the loan distribution capacity of cooperative banks

• Modernize bank branches

• Ensure easy and fast access to loans for farmers

• Support technology, loan, and marketing through cooperative institutions

The CM stressed that cooperation is the key to farmer prosperity and highlighted the importance of building strong, transparent, and farmer-friendly cooperative institutions.

Impressive Progress in Loan Distribution Since 2017

Since 2017, the Uttar Pradesh Cooperative Bank has made notable progress:

• Loan disbursement grew from ₹9,190 crore to ₹23,061 crore

• District cooperative bank business reached ₹41,234 crore

• Net profit stood at ₹162 crore

• Crop loans worth ₹11,516 crore and long-term loans of ₹393 crore were distributed in the last 8 years

100 New Warehouses to Be Built by 2025–26

The state government is also focusing on improving storage infrastructure:

• So far, 1.17 lakh metric tonnes of storage capacity have been created

• 100 new warehouses are proposed to be constructed by 2025–26 under AIF and RKVY

• Under India’s largest food storage scheme, warehouses of 500–100 metric tonnes will be set up in 16 districts

Recruitment Drive in Cooperative Institutions

To improve the functioning of cooperative banks and institutions, CM Yogi has:

• Ordered faster recruitment of vacant posts through IBPS

• Directed changes in the functioning of PCF (Provincial Cooperative Federations)

• Asked for prompt payments to rice millers

These steps aim to boost efficiency and ensure better services to farmers.

A Strong Cooperative Policy for Farmer Welfare

CM Yogi Adityanath announced that a new cooperative policy will soon be prepared. This policy will:

• Strengthen cooperation in storage and marketing

• Include private sector participation

• Focus on transparency and farmer-centric operations

He also said that the Mukhyamantri Krishak Samriddhi Yojana will help farmers become debt-free, increase agricultural productivity, and ensure financial stability.

Also Read: Government Offers 75% Subsidy on Gypsum for Key Crops

CMV360 Says

The Mukhyamantri Krishak Samriddhi Yojana is a big step towards empowering farmers in Uttar Pradesh. With cheaper loans, better storage, improved services, and a strong cooperative system, the scheme aims to make farming more profitable and sustainable. Once implemented, it can offer a new ray of hope for millions of farmers across the state.