Bhubaneswar, Jun 29: In a bid to curb diversion and ensure timely supply to farmers during the kharif season, the Odisha government has approved a Rs42 crore interest subvention scheme aimed at strengthening fertiliser distribution through cooperative societies, officials said on Monday.

The decision was taken on the recommendation of the Standing Finance Committee (SFC), chaired by the secretary of the Cooperation Department, they added.

The scheme, approved for five years from 2026 27 to 2030 31, has an initial allocation of Rs5 crore for the current financial year. It seeks to raise the cooperative sector’s share in fertiliser distribution from the present 25–30% to 60%.

According to officials, nearly 2,700 grassroots cooperative societies, including Primary Agricultural Cooperative Societies (PACS) and Large Adivasi Multipurpose Cooperative Societies (LAMPCS), will benefit from the initiative. Each society will be provided a cash credit limit of up to Rs10 lakh, depending on its operational capacity.

The government expects the scheme to empower cooperatives, reduce dependence on private trade channels, and prevent illegal diversion of fertilisers. By enhancing cooperative participation, the state aims to ensure transparency and accountability in fertiliser distribution.
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Officials said the scheme is designed to support farmers by guaranteeing timely access to fertilisers, particularly during peak agricultural seasons. It also reflects Odisha’s broader push to strengthen cooperative institutions and improve agricultural productivity.

The interest subvention scheme is expected to be a game changer for grassroots cooperatives, enabling them to play a larger role in supporting farmers and ensuring equitable distribution of essential inputs across the state.