In a move to embark upon the financial woes of the apple orchard owners in Himachal Pradesh, the State Bank of India has launched three area-specific schemes. By providing financial assistance to the apple growers, these new schemes will help boost the production and productivity of apple.
A senior official from the bank told FE, “We have estimated to disburse about Rs 30 crore within a year through these schemes. Under the first scheme we will provide credit for integrated infrastructural support. This will meet the capital requirements of the orchardists pertaining to irrigation facilities, packaging, transportation, orchard equipments, storage tanks etc. The total expenditure on all these things have been estimated at around Rs 10 lakh/acre and the client is entitled to get 75% funds from the bank. The entire loan will have to be repaid within eight years. Besides this, a crop loan of Rs 1.75 lakh/acre will also be available.”
The bank is also undertaking an initiative to replace the old plants in the orchards and provide financial support to purchase the new improved varieties. The official further added, “Since majority of orchards in Himachal are over 50 years old, there is a need to rejuvenate them. The old plants will be replaced in phases over a period of four years with imported, better quality varieties. The new varieties produce fruits faster and by the end of the fourth year, the first crop will start yielding. This will maintain a continuous flow of funds for the apple growers. The total estimated cost for this comes out to Rs 4 lakh/acre and we can finance upto Rs 3.28 lakh/acre.”
There’s a prevailing trend in Himachal and J & K of leasing out the orchards at the stage of flowering itself. Under the third scheme, the bank will be providing loan to the lessee of apple orchard, which was not practiced earlier.