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Select co-ops may get bank loan access
Hindustan Times
|January 27, 2024
The Central government is considering a move to allow cooperatives across animal husbandry, dairying, fish and poultry to borrow directly from banks other than just the National Bank for Agriculture and Rural Development (NABARD), as they are meant to currently.
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This will be done by merging two funds, the Animal Husbandry Infrastructure Development Fund (AHIDF) and Dairy Processing & Infrastructure. Development Fund (DIDF), a measure that is set to be announced in the coming interim budget.
The outlay is expected to be around 29,000 crore, including the subsidy component for three years up to 2026-27.
Currently, cooperatives only have access to NABARD, the country's apex bank for the agriculture sector, for loans, and the merger will create administrative ease for taking out future loans. The move follows the expiry of the AHIDF's term, which is now being extending for another next three years.
"The idea of the merger is that cooperatives should also be able to borrow from banks directly.
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