Bhubaneswar, Apr 22: In a bid to strengthen the agricultural sector and boost farmers’ income, the Odisha government has unveiled a major loan scheme for the upcoming Kharif 2026 season.

The state has set a target of disbursing ₹11,500 crore in crop loans through cooperative banks to support cultivators during the season.

Under the new guidelines, farmers borrowing up to ₹1 lakh through cooperative banks, PACS, or other institutions will enjoy zero per cent interest, provided they repay on time. For loans between ₹1 lakh and ₹3 lakh, the interest rate will be capped at 2%, again contingent on timely repayment.

The government has mandated that all short-term agricultural loans through PACS must be processed online only. PACS that fail to adopt online systems will not be eligible for refinancing facilities during Kharif 2026. Loan amounts will be directly credited to farmers’ savings accounts, with Aadhaar linkage made compulsory to ensure transparency.

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To strengthen the agricultural base, special emphasis will be placed on extending credit to sharecroppers, landless farmers, and oral lessees under the Balaram scheme.

PACS have been instructed to allocate at least 10% of their total loans to these categories. Additionally, PACS must maintain adequate stocks of fertilizers and seeds in advance to ensure uninterrupted supply during the season.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) will continue during Kharif 2026. Although enrolment remains voluntary, the government has directed officials to encourage farmers to participate for added protection against crop losses.

Loan repayment periods have been set at 12 months for Kharif and Rabi crops, with an extension up to 18 months for long-duration crops. District Collectors have been instructed to convene district-level coordination committee meetings to ensure smooth and timely implementation of the scheme.