Bhubaneswar: In a major boost to the cooperative sector and to ensure the timely availability of fertilisers to farmers, the Odisha government has approved a Rs 42-crore Interest Subvention Scheme aimed at strengthening fertiliser distribution through cooperative societies and curbing black-marketing.

The new State Sector Scheme, titled "Interest Subvention on Cash Credit Loan for Prepositioning of Fertilizer," has been approved for implementation from the current financial year after receiving clearance from the Finance Department. The proposal was recommended by the Standing Finance Committee (SFC), chaired by the Commissioner-cum-Secretary of the Cooperation Department.

The scheme seeks to address a key challenge faced by Primary Agricultural Cooperative Societies (PACS) and Large-sized Adivasi Multipurpose Cooperative Societies (LAMPCS), which often incur substantial interest costs while procuring and stocking fertilisers months ahead of the peak agricultural seasons.

Government to provide 100% interest relief on Cash Credit loans

Under the initiative, the State Government will provide 100 per cent interest subvention on Cash Credit (CC) loans, enabling cooperative societies to preposition fertilisers without bearing any interest burden. The move is expected to ensure an uninterrupted supply of fertilisers to farmers during crucial sowing periods.

According to the Cooperation Department, the scheme aims to increase the cooperative sector's share in fertiliser distribution from the current 25-30 per cent to 60 per cent beginning with the Kharif 2026 season. Officials believe this will significantly reduce the scope for illegal diversion and black-marketing through private trade channels.

The government has approved a total financial outlay of Rs 42 crore for the five-year period from 2026-27 to 2030-31, with an initial allocation of Rs 5 crore earmarked for the current financial year.

Around 2,700 grassroots cooperative societies, including PACS and LAMPCS, are expected to benefit under the scheme. Each eligible society will receive customised Cash Credit limits of up to Rs 10 lakh, depending on its operational requirements and capacity.

To improve transparency and accountability in fertiliser sales, the government will also promote QR code-based digital payments at cooperative outlets. The initiative is aimed at ensuring seamless transactions while preventing irregularities in fertiliser distribution.

Officials said the farmer-centric scheme will help guarantee the availability of fertilisers at government-notified prices while reducing the financial burden on cooperative institutions responsible for last-mile delivery.

The government expects the initiative to strengthen Odisha's cooperative network, improve fertiliser accessibility in rural areas, and provide farmers with timely access to essential agricultural inputs during both Kharif and Rabi seasons.