Get Loan In Rythu Bandhu Scheme Andhra Pradesh
The Rythus Bandhu scheme has been introduced by the state government of Andhra Pradesh. This entails a loan of Rs. 15 crore that will be sent to 1,024 farmers in the state. This was introduced by T. Harish, the Irrigation Minister of Andhra Pradesh. Harish stated that this scheme has been in the works since the Telangana State was formed. The state had introduced a similar scheme in 2015.
The state government will be offering the money in this loan for up to December 2017.
The program is designed to support farmers who are looking to make the most of the products they are aiming to sell. This especially comes amid the considerations of how many farmers are struggling financially. The assistance in this scheme will especially be ideal for many needs.
Similar Loans From the Past
The Rythu Bandhu scheme is similar in a way to many other loans that had been given to farmers in recent time:
- 10.24 crore was given to 857 farmers in the state in 2014-15. This came during the pilot period for the program.
- The program expanded as Rs. 11 was given to 954 farmers in 2015-16. At the same time, more than a hundred new godowns were built to support the farmers with securing what they were producing.
- The expansion to Rs. 15 crore to 1,024 farmers in 2016-17 is the largest in the system so far. Much of this will help farmers as the prices of some of their crops, including the prices of raw materials to grow them, start to increase.
The expansion comes amid the growth in the needs for taking care of farmers around the state. This is especially as the population continues to grow in size and the demand for products from farmers continues to grow. This is also reflective of how others have taken advantage of this in the past.
Support For Godowns
One of the key parts of this entails godowns being used for storing crops. The loans in this scheme will be provided to farmers that use such warehouses.
These are to be provided as a means of protecting the crops that farmers grow. This is especially critical at times when weather conditions in the state might be difficult for farmers to work with. This comes amid concerns over how some items may be difficult for people to secure on their own.
Stopping Distress Sales
Distress sales has become commonplace among many farmer in the state in recent time. This comes from how many farmers are bearing with situations where buyers will take in the crops farmers grow and sell them at significantly higher prices. This includes cases where farmers were abused by not getting enough of their fair shares of the profits.
By using these loans, it will be easier for people to avoid the problems that come with distress sales. This includes ensuring that the production of necessary crops will be kept intact and that losses will not be at risk of occurring in some way.
Also, the interest-free nature of the loans will ensure that farmers will have enough time to take advantage of favourable conditions for growing crops. These include the rabi crops that had been grown in plentiful quantity in recent time thanks to some of the better and more conducive conditions in the area for growing them.
The individual totals associated with the Rhthu Bandhu scheme should be reviewed by individual farmers looking to take advantage of the program. The Andhra Pradesh state government will use a few standards:
- A farmer can take Rs. 2 lakh in one’s loan. This is higher than the Rs. 1 lakh limit in the prior scheme.
- The maximum value of a loan can be 75 percent of one’s pledged stock. This is provided that it is up to Rs. 2 lakh in value.
- The loans will be interest-free for the first 180 days. This is to keep farmers from having to bear with distress sales.
- There is no need for any pieces of land to be mortgaged to take advantage of the program.
Helping Farmers To Stay Active
There have been some concerns over how active farmers are in terms of what they can do for preparing foods. This comes amid concerns that demonetisation has kept farmers from being able to sell their wares and make profits. By offering added interest-free loans, it should be easier for farmers to afford to run their farms and to potentially make sizeable profits.
A state government-run campaign will be offered to promote the new scheme. This will especially be marketed in some of the more rural parts of the state where farmers are likely to be found in.
On a related noted, added godowns will be built to store agriculture products around Andhra Pradesh. These warehouses will help with ensuring that the items grown in the state are protected as needed. This is especially to allow the farmers of the state to get the most out of whatever they may grow.
The scheme will help with protecting farmers and providing them with the funds they require. This especially comes amid the need for farmers to stay active and functional even as the ongoing demonetisation process continues to go along in India. Farmers in Andhra Pradesh are encouraged to take a look at the Rythu Bandhu scheme to see what they can get from it.