The Chief Minister of Madhya Pradesh has announced a loan scheme named as “Krishak Udhyami Yojana”, an entrepreneurship scheme for the children of farmers. This scheme will provide loan facilities to the children of farmers and their wards at affordable rates. The loans would be provided to the youth to setup custom processing centers for the agriculture produce. The processing centers would help farmers clean their produces and get it graded for price addition.
Under the Krishak Udhyami Yojana, the state government will provide loan facilities to the farmers’ sons and daughters from Rs. 10 lakh to Rs 2 crore with 15% grant. This scheme is also providing 5% grant on interest for 5 years. In state, around three fourth of the population is engaged in agriculture and allied activities.
Benefits of the Krishak Udhyami Yojana
- This scheme will reduce the financial burden on the farmers and their children.
- The state govt. will provide remunerative price for certain crops.
- Scheme will generate more employment opportunities for the youth in the state.
- Krishak Udhyami Yojana would increase the income of farmer individuals across the state.
- It reduces the need for migration from rural to urban regions.
The state government is encouraging the youth to get loan with the help of banks to setup their own custom processing centers. These centers will help the farmers to clean their produce and grade with the price addition. For the establishment of custom processing centers, the state govt. will provide 40% grant on a loan up to Rs. 25 lakh.
In the first phase of the scheme, Government is planning to set up 1000 such centers.
The entrepreneurship not only create investment and employment opportunity, it also helps the farmers to reconcile with the farming techniques. The scheme will also bring innovation to improve yields per hectare in agriculture land.
In India, a larger number of farmers are still dependent on age-old farming techniques despite the new technologies are available in the market. This scheme will provide opportunities for the youths to bring more technologies in agriculture sectors on the needs of farmers.
The successful implementation of Krishak Udhyami Yojana loan scheme will improve the efficiency and productivity in agri – business sector like food processing and packaging, preservation of seasonal fruits and vegetables, seed processing, flower farming etc.