In a major step aimed at ensuring timely availability of fertilisers for farmers and curbing large-scale black marketing, the Odisha Cooperation Department has announced a new interest subsidy scheme for cooperative societies involved in fertiliser distribution.

The new state sector scheme will be implemented for a period of five years, from 2026-27 to 2030-31, with a total estimated budget of ₹42 crore. For the current financial year, the state government has approved an allocation of ₹5 crore for the scheme.

Under the initiative, around 2,700 cooperative societies, including Primary Agricultural Cooperative Societies (PACS) and Large Area Multipurpose Cooperative Societies (LAMPS), are expected to benefit. To improve their operational efficiency, these societies will be provided with cash credit facilities of up to ₹10 lakh.

During the farming season, cooperative societies usually purchase fertilisers in advance and store them to ensure smooth supply to farmers. However, they often have to bear a significant interest burden on the loans taken for advance procurement.

To reduce this financial pressure, the state government will provide a 100 per cent interest subsidy on cash credit loans taken by cooperative societies for advance fertiliser stocking. This will allow societies to maintain adequate fertiliser reserves without facing additional financial burden.

The scheme, titled “Interest Subsidy on Cash Credit Loans for Advance Stocking of Fertilisers,” was recommended by the Standing Finance Committee (SFC) chaired by the Cooperation Secretary. The Finance Department has also approved its implementation from the current financial year.

The government aims to increase the contribution of the cooperative sector in fertiliser distribution from the existing 30 per cent to 60 per cent through this scheme. It also seeks to prevent illegal diversion and black marketing of fertilisers through private channels.

To bring more transparency to fertiliser sales, dealers and selling points have been instructed to conduct transactions through a QR code-based system.

The initiative is expected to ensure that farmers receive fertilisers at the right price and at the right time, especially during crucial agricultural seasons. The government believes the scheme will strengthen the cooperative network and improve the overall fertiliser supply system across Odisha.