By: Mohammad Aatif Ismail
MULTAN, Aug 27 (APP): In an era of persistent inflation, the agriculture loan facility with a minimal seven percent interest rate is no less than a blessing as it provides a remarkable opportunity for the empowerment of poor peasants.
Already struggling to meet their ends, the poor and small farmers who were unable to afford other commercial loans, took a respite when the government announced a low markup agricultural loan facility for them.
Since a substantial majority of small farmers grapple with inadequate finances to sustain their cultivation efforts, they resorted to sourcing essential agricultural inputs like seeds, fertilizers and pesticides from middlemen or local dealers.
Although they are an easy access for farmers but such loans were subject to exorbitant interest rates. But, this unfortunate practice leads to a cycle of exploitation wherein these middlemen or dealers capitalize on the vulnerabilities of peasants by lending money at higher rates and acquiring their produce at reduced prices.
Prevalence of this trend had been a main hurdle in way of prosperity and economic well-being of the farmers. Therefore provision of low-interest loans through an easy process proved to be beneficial for them as well as in improving the country’s economy by enhancing productivity.
“Low-interest loan facility can be a game changer for the agriculture sector,” commented, Mango grower Malik Arif Kalro from village Nawabpur. “With access to affordable credit, the farmers can invest in agricultural technologies and equipment to enhance productivity by proper conservation of resources.”
He said this step was imperative to break the shackles of exploitation and burdensome high-interest debts. “We need a concerted approach towards the agricultural sector for ensuring food security and steer farmers out of private crediting vicious circle.”
He advocated continuation of this facility even during years ahead to counter the challenges we are facing to feed our people and foster self-sufficiency. “By ensuring ample supply and reducing reliance on imports, we can also be able to stabilize food prices.”
Arif also underscored the transformative power of the agriculture sector’s investments in tackling poverty prevalent in rural regions.
The statistics show that during fiscal year 2023, the financial institutions disbursed Rs 1776 billion under agriculture financing and achieved 97.6% of the agriculture credit target of Rs 1819 billion. The financial institutions disbursed the amounts under their own agriculture schemes and PM’s Kisan Package.
Under the Prime Minister’s Loan scheme, the loan is offered in two categories, production and development.
“In production, the farmers are provided subsidies for the purchase of inputs including seeds, fertilizers and pesticides,” informed Faheem Ahmed, an official at Zarai Tariqiati Bank Limited (ZTBL). “On the other side, they are facilitated in the purchase of machinery, solar tube-wells, tractors etc.”
He said loans were also being provided for the promotion of livestock and fisheries sectors. “The process has also been eased for the farmers as compared to the past practices and now they are provided loans without much hassle.”
Farmers like Vehari-based Moazzam Ali are happy to avail of this facility and hope for better days ahead as he feels that a low markup loaning facility would pave the way for the betterment of farmers as well as the economy as a whole.
Brimming with joy after reaping the benefits of the solar tube well facility, he stated,” “I am delighted to have access to a low-interest rate loan facility. It significantly assists me in reducing costs of farming, especially irrigating my fields.”
“Escalating electricity tariff had added to our hardships. However solar energy system installed after PM’s low-interest rate loan facility had proven to be a panacea to mounting costs,” he said.
Muhammad Ashraf, another small farmer from Liaqatpur revealed that he acquired loan amounting to Rs 280,000 and this amount when used wisely helped to meet my seeds, fertilizers and other input needs.
“I am receiving a gratifying return as well-managed investment translated into bumper harvest,” he said underscoring the vital role of finances in timely purchase of inputs and avoiding private borrowing through vendors and commission agent mafia.
Since lending and borrowing are long associated with any business what matters is the timely disbursement of money to keep the business going and earn a sufficient amount to survive.
Busharat Ali, a resident of Rahim Yar Khan also praised this initiative as he had invested his Rs 450,000 loan amount in establishing a dairy farm.
“My decision to invest in the diary sector proved fruitful as it brought financial stability to his business,” he remarked. “The in-time flow of finances not only empowers individual farmers but also stimulates economic growth within communities they serve.”
He was confident that continuation of this scheme would benefit more and more farmers in the future sparing room for them to grow.
As agriculture and farming provide a very basis for human survival by providing edibles, promoting sustainable agricultural growth in a country like Pakistan where the population growth rate if around two percent, was of vital importance.
Therefore the successive government must focus on this sector not only to feed our people but also to boost exports by value addition to our existing food crops and explore modern agriculture techniques to enhance produce.
APP/atf/maz (APP Feature Service)