Industry Odisha Bureau, Jun 29: In a major move to ensure the timely availability of fertilizers, the Odisha Government has approved Rs 42 crore interest subvention scheme to boost fertilizer distribution by Cooperatives
The Cooperation Department has approved the new scheme for smoothening distribution of fertilizer to the farmers of the State.
This decision has been taken following the recommendation of the Standing Finance Committee (SFC), chaired by the Commissioner-cum-Secretary, Cooperation Department, for a new State Sector Scheme: “Interest Subvention on Cash Credit Loan for Prepositioning of Fertilizer.” The Finance Department has already approved the scheme for implementation from the current financial year.
The scheme tackles a critical bottleneck: cooperative societies (PACS/LAMPCS) often face heavy interest burdens when they lift fertilizer months in advance (prepositioning) to stock up for peak agricultural seasons.
By providing 100 percent interest subvention on Cash Credit (CC) loans, the State Government is removing this financial hurdle, making advance stocking completely cost-free for cooperatives.
Targeting 60 percent Market Share: The scheme aims to scale up the cooperative sector’s share of fertilizer distribution from the current 25–30 percent to 60 percent from Kharif 2026 onwards, significantly curbing illegal diversion by private trade channels.
Financial Outlay: A total budget of Rs 42 Crore has been approved for a five-year period (2026-27 to 2030-31), starting with an initial allocation of Rs 5 Crore for the current financial year.
Massive Institutional Footprint: Approximately 2,700 grassroot cooperative societies (PACS/LAMPCS) will be covered, receiving tailored Cash Credit limits up to Rs 10 Lakh based on their operational capacity.
Promoting Digital Payments: To ensure absolute transparency at the point of sale, the government will actively promote the use of QR Codes for fertilizer transactions.
By eliminating credit costs and modernizing transactions, this farmer-centric intervention guarantees that essential agricultural inputs reach Odisha’s farmers at government-fixed prices, precisely when they need them most.
