THIRUVANANTHAPURAM: Following the increase in the interest rate on agricultural loans by National Bank for Agriculture and Rural Development (NABARD), the primary co-operatives societies in the state have been forced to disburse agriculture loans at a higher interest rate.These co-operative societies, would be able to disburse the loans with a higher interest rate of 14.25 per cent against the earlier interest rate of 7 per cent. With the state facing a number of farmer suicides, this could have a cascading effect on the agriculture scenario in the state. NABARD which gives loan to Kerala State Co-operative Agriculture rural development bank had increased the interest rate from 4.5 per cent to 10 per cent. This in turn resulted in a proportionate increase in the agricultural loans given away by the co-operative societies.
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