New Delhi, Apr 22: Government would soon decide on a restructuring package for ailing cooperative banks and evolve methods to provide farm credits at lower interest rates, agriculture minister Ajit Singh told the Rajya Sabha today. "We need a credit of more than seven lakh crore rupees in the tenth plan for agriculture. Government will soon be taking a decision on the restructuring and revitalising of cooperative banks which provided a major chunk of credit to farmers," Singh said winding up a two-day discussion on the working of his ministry.

Cooperative credit structure has to be revitalised and the interest rates on farm credits have to be brought down, Singh said adding the government had already announced in the budget that credit would be made available at PLR (prime lending rate) plus-minus two per cent.
Noting that the three mantras for improving agriculture were cheaper credit, improved marketing and availability of improved inputs, Singh said cooperatives provided the backbone for marketing of farm products and state cooperative laws have to changed to free cooperatives from shackles of bureaucratic controls. Bureau Report