Punjab has launched a new Loan Scheme for Farmers, Apply and get 80% Subsidy

The Punjab Government, led by Chief Minister Bhagwant Mann, has introduced a new loan scheme to help farmers manage crop residue, like paddy straw, which is often burned and causes pollution. This scheme, launched by the State Cooperative Bank, is aimed at providing financial support to farmers so they can purchase machines that will help them deal with crop residue without burning it.

Key Points About the Loan Scheme:

• Goal: The main goal of the scheme is to reduce environmental pollution caused by the burning of paddy straw. It makes it easier for farmers to get loans to buy the necessary machines for crop residue management.
• Availability: Farmers can apply for the loan at the State Cooperative Bank in Chandigarh and at 802 branches of district cooperative banks across Punjab.
• Easy Process: The loan application process is simple and designed to be farmer-friendly.

Who Can Benefit?

• Farmers: Any farmer can take advantage of this scheme to buy equipment for managing crop residue.
• Primary Agriculture Cooperative Societies (PACs): Village PACs and progressive farmers can also benefit from the scheme.
• Subsidy for Equipment:
• PACs and other entities can get an 80% subsidy for buying agricultural equipment through the Common Hiring Centre (CHC) scheme.
• Progressive farmers are eligible for a 50% subsidy for buying tools like balers and superseeders, which help with crop residue management.

Benefits of the Scheme:

1. Reduces Pollution: Paddy straw burning is one of the major causes of air pollution in Punjab. By providing financial help to farmers to buy machines, this scheme will greatly reduce the amount of harmful smoke released into the air when stubble is burned.
2. Encourages Sustainable Practices: With access to better machines, farmers can switch to sustainable methods of managing crop residue instead of burning it.
3. Supports Biofuel Industry: The crop residue collected through this initiative can be used in bio-energy plants such as power generation units, compressed biogas (CBG) plants, and 2G ethanol factories. This creates a supply chain from farmers to these industries, which helps in producing clean energy and supports the biofuel sector.
4. Job Creation: The scheme could also create new jobs in the bio-energy industry and related sectors, as more crop residue will be processed instead of burned.
5. Reduces Health Hazards: Air pollution caused by stubble burning is harmful to people’s health, especially in rural areas. Reducing the burning will lead to cleaner air and fewer health problems like asthma and respiratory issues.

How the Loan Works:

• The loan can be paid back over five years, with 10 half-yearly instalments (every six months) due between June 30 and January 31 each year.

Why This Is Important:

This loan scheme not only helps farmers financially but also helps protect the environment by cutting down on harmful practices like stubble burning. It encourages farmers to adopt better, more eco-friendly methods and supports the growth of industries that rely on agricultural waste. Ultimately, it’s a step towards improving both agricultural practices and the environment in Punjab.