panaji
By announcing that there will be a 2% interest subvention for farmers involved in animal husbandry and fisheries, Interim Finance Minister, Piyush Goyal, has brought a lot of relief to thousands of fishermen in Goa.
Although more clarity on this announcement is required, it seems fishermen will have to pay 2% less on the interest cost of loans from banks and other financial institutions.
Vinesh Pikale, a chartered accountant based in Panaji, said, “Such schemes existed for farmers involved in agriculture. Now, the government has replicated it for fishermen as well. It means that there will be 2% reduction in the interest cost for fisheries. However, we have to wait for the final print to see exactly which loans will get benefit and also who will be the real beneficiaries.”
The fisheries sector, which forms a big part of the Goan economy, often finds it tough to source loans from banks as it consists of really small businesses, which find it tough to deal with institutional means of finance.
Manguirish Pai Raikar, Chairman, MSME National Council of ASSOCHAM, said, “Two per cent interest subvention will really help the fisheries sector. This is because fishermen are not able to bargain with banks for loans like large industrialists.”
A number of seafood exporters are based out of Goa. They are likely to be the beneficiaries of this announcement.
Sources said that by announcing interest subvention, Goyal has brought the sector on par with agriculture.
