In a move to ensure timely access to fertilisers and combat black-marketing, the Odisha government has sanctioned a new scheme offering 100% interest subvention on cash credit loans for cooperative societies to pre-position fertilisers. The scheme, named “Interest Subvention on Cash Credit Loan for Prepositioning of Fertiliser,” will be executed by the Cooperation Department starting this fiscal year with the Finance Department’s endorsement. This initiative targets easing the financial burden on Primary Agricultural Cooperative Societies (PACS) and Large-sized Adivasi Multi-Purpose Cooperative Societies (LAMPCS) that procure fertilisers in advance of cropping seasons.
The government’s decision to cover the full interest cost on cash credit loans aims to empower these cooperatives to stock an adequate supply of fertilisers without incurring extra financial obligations. By doing so, the state anticipates boosting the cooperative sector’s share in fertiliser distribution from the current 25-30% to approximately 60% starting the Kharif 2026 season. Officials believe this step will enhance fertiliser availability to farmers and minimize the chances of diversion and black-marketing through private channels.
A financial allocation of Rs 42 crore has been sanctioned for the period from 2026-27 to 2030-31, with an initial allotment of Rs 5 crore for the ongoing fiscal year. Around 2,700 grassroots cooperative societies, including PACS and LAMPCS, are set to benefit from this scheme. Eligible societies will receive cash credit limits up to Rs 10 lakh based on their operational needs and capabilities. Additionally, the scheme aims to encourage digital payments through QR code-based transactions at fertiliser sale points to enhance transparency and streamline distribution processes.
The government’s objective with this initiative is to ensure that fertilisers are accessible to farmers at government-approved prices promptly and transparently, while reinforcing the role of cooperative institutions in the state’s agricultural supply chain. The government emphasized that by eliminating credit costs and modernizing transactions, this farmer-centric intervention guarantees that essential agricultural inputs reach Odisha’s farmers at government-fixed prices when they are most needed.
