Thus, without exaggeration, it is safe to say that financial flows to agriculture have been generous. 4. The Government has also undertaken several measures to compensate for the adverse terms of trade and the inert institutional architecture confronting agriculture in order to improve the profitability of crop production.
The Interest Subvention Scheme has been running for a decade under which banks and cooperative institutions extend short term crop loans of up to 3 lakh to farmers at a concessional rate of 7 per cent. Timely repayment is incentivised by an additional subvention of 3 per cent.