The Chhattisgarh government will encourage farmers to go for lac cultivation and provide them lac crop loan with zero interest through the District Cooperative Bank.
A loan limit of Rs 5,000 has been fixed for rearing lac on Kusum tree, Rs 900 for Ber (Indian Jujube) and Rs 500 for Palash (Tesu) tree, an official Communication said on Saturday.
The Chhattisgarh State Minor Forest Produce (Trading and Development) Cooperative Federation has taken the initiative to increase lac production.
Chhattisgarh is one of the highest producers of lac in the country. It produces 4,000 tonnes of lac at an estimated value of Rs 100 crore.
The production target is 10,000 tonnes, which will generate an income of Rs 250 crore to the farmers.
The rates for procurement of Bihan lac (seeding lac insects) have been fixed. The farmers can procure Kusumi Bihan lac (obtained from Ber tree) at Rs 550 per kg and Rangini Bihan lac (obtained from Palash tree) at Rs 275 per kg.
Lac production clusters have been formed with three to five primary committee areas in 20 districts.
Lac production occurs twice a year — in summer and winter.