The need of the hour for farmers in drought-hit areas is a four to five year credit cycle with an interest rate of around four per cent, said renowned agricultural scientist Dr M S Swaminathan.
Addressing the gathering at a function at the Administrative Staff College of India (ASCI) in Hyderabad, Swaminathan said called for establishing a Rural Insurance Development Fund.
"As against the present yearly credit cycle, we need to have a 4-5 year cycle. The farmers also need credit at 4 per cent interest," he added.
Swaminathan said credit and insurance literacy was very low. "Hardly four per cent of farmers are taking part in insurance programmes," he said.
Calling for better use of funds being channelised to the 33 'distress districts', he wanted the government to identify areas with a high untapped agricultural potential and develop them into special agricultural zones.
While providing common