(From left) Industries minister Renu Kumari, agriculture minister Narendra Singh and agriculture production commissioner Ashok Kumar Sinha at the horticulture seminar at Bihar Veterinary College in Patna on Friday. Picture by Ashok Sinha

Patna, Jan. 28: A memorandum of understanding (MoU) has been signed between the state agriculture department and National Bank for Agricultural and Rural Development (Nabard) at the Scada Business Centre today.

According to the MoU, farmers would get agriculture loan at four per cent interest. This would be applicable on all loans given out on or after April 1, 2010.

The MoU was signed in the presence of agriculture minister Narendra Singh. Agriculture production commissioner Ashok Kumar Sinha and Nabard chief general manager V. Mohan Das put their signatures on the agreement.

Singh said: “The farmers in the state would get agriculture loan at four per cent interest rate instead of seven per cent interest. The state government would provide Nabard with the amount and the bank will in turn give it to the commercialised, rural and co-operative financial institutions.”

Singh added: “Nabard would soon provide detailed guidelines on this.”

Singh said crop loan, Kisan Credit Card loan or short-term agriculture production loan would all be given to farmers at the lesser interest rate.

This will be implemented on all loans from April 1 2010. Farmers will also get benefits for repaying the loans on time. Agriculture department secretary C.K. Anil, agriculture director Arvinder Singh and Bameti director R.K. Sohane were also present at the event.

Horticulture meet

In another event held at Bihar Veterinary College today, agriculture minister Narendra Singh and industries and disaster management minister Renu Kumari jointly inaugurated a two-day seminar on “Development of Horticulture in Bihar — Issues and Strategies.” Singh said: “The universities across the state should look for new crops. Many species of crops are going extinct.”

“Farmers should also benefit economically from the crops they produce. If they can go out of the state and help in the production of goods that are later imported to the state, why can they not do the same here? There are enough resources in the state to bear fruitful results,” said Singh.

Kumari stressed on the importance of food processing industries.

She said: “There are around 185 proposals for setting up food processing units. About Rs 3,319 crore will be invested, and about Rs 160 crore has already been pumped in.”

Kumari also said she was worried about the power situation in the state. “If the power problems are sorted out, there is a lot of potential for setting up industries in the state,” said Kumari.