New Delhi/Bhubaneswar: The Odisha government has approved a Rs 42-crore interest subvention scheme aimed at strengthening fertiliser distribution through cooperative societies, a statement said on Monday.

The decision was taken on the recommendation of the Standing Finance Committee (SFC), chaired by the secretary of the Cooperation Department, it said.

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Under the scheme, the government plans to increase the cooperative sector's share in fertiliser distribution from the existing 25-30 per cent to 60 per cent beginning with the kharif season, officials said.

The move is expected to reduce the illegal diversion of fertilisers through private trade channels, they said.

The scheme has a total outlay of Rs 42 crore for the five-year period from 2026-27 to 2030-31, with an initial allocation of Rs 5 crore for the current financial year, they added.

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Around 2,700 grassroots cooperative societies, including Primary Agricultural Cooperative Societies (PACS) and Large-sized Adivasi Multipurpose Cooperative Societies (LAMPCS), will benefit under the scheme, officials said.

Each society will receive a tailored cash credit limit of up to Rs 10 lakh based on its operational capacity, they said.

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