The Madhya Pradesh government today decided to grant short-term loans through cooperative banks at three per cent interest to all farmers during the year 2010-11.

State parliamentary affairs minister, Narottam Mishra who is the official spokesman for the government, told reporters that a decision to this effect was taken at a cabinet meeting earlier in the day.

The minister said earlier the interest rate on loans given by the cooperative banks to farmers was five per cent and this had now been reduced.

The cabinet meet was held under the chairmanship of the chief minister, Shivraj Singh Chouhan who had at the Kisan Manch on September 30 last year announced that loans at three per cent interest would be made available to farmers.