Government Launches Rs. 1000 cr Credit Guarantee Scheme to Help Farmers Access Post Harvest Loans

The Government of India has introduced a ₹1,000 crore Credit Guarantee Scheme (CGS) to support small and marginal farmers facing distress selling. Minister Joshi highlighted that the scheme would address banks’ hesitation in lending to farmers by offering a government-backed credit guarantee. He also underscored India’s growing role in global food security, noting the need to strengthen domestic agriculture. Shri Joshi during his address invoked PM’s commitment for farmers’ welfare. He said that fertiliser prices have globally increased due to ongoing conflicts. The minister pointed out that despite soaring global fertilizer prices due to ongoing conflicts, the government provides urea to farmers at the world’s lowest rates. This scheme addresses the default arising out of both Credit risk and Warehouseman risk and thereby, improves trust by the Banks. The credit guarantee schemes are expected to enhance the availability and accessibility of finances for the targeted beneficiaries, as they play an important role in economic growth.