The Cabinet gave its approval for the release of funds to the tune of 4,868 crore rupees as interest subvention to Public Sector, Regional Rural and Cooperative banks to ensure short term crop loans to farmers. AIR Correspondent says that the government has been subsidising short term crop loans to farmers since 2006-07 at seven per cent interest for loans up to three lakh rupees. Last year, an additional subvention of one per cent was provided to farmers who are able to repay in time. This year, the interest subvention was increased to two per cent. With this, the farmers who are able to repay their loans in time, in effect, have to pay only five per cent interest for their short term crop loans. The target for agriculture credit flow in the current year has been fixed at 3 lakh 75 thousand crore rupees, which is 50 thousand crore more than last year's target.