December 7, 2022

Justice for Gemmel

Stellar business, nonpareil

Tamil Nadu and Andhra Pradesh top in farm credit disbursals


Tamil Nadu has topped in disbursement of agriculture credit by supplying absent financial loans value ₹1,63,289 crore out of a full of ₹10,33,183 crore distributed throughout the country until December 31 this fiscal. The South Indian Point out led from the entrance in disbursing agricultural financial loans very last 12 months much too with disbursal of ₹1,ninety,222 crore.

In a composed reply in the Lok Sabha previously this 7 days, Finance Minister Nirmala Sitharaman reported Andhra Pradesh (₹1,06,303 crore) and Uttar Pradesh (₹77,349 crore) were being second and third in agricultural credit disbursals. Curiously, Kerala, which is not a key agricultural Point out, came fourth.

twelve.fifty five crore personal loan accounts

Agricultural credit disbursed by means of cooperative banking companies, regional rural banking companies and commercial banking companies are intended to meet up with shorter-expression credit prerequisites of farmers for agricultural and allied pursuits.


According to the Minister, there are close to twelve.fifty five crore agricultural personal loan accounts in the country as per details offered for 2018-19. Out of these, nine.31 crore accounts belong to modest and marginal farmers. A very little a lot more than fifty per cent of the agricultural credit was produced offered to modest and marginal farmers. This is virtually 3-fourths of full agricultural personal loan accounts in the country, she reported.

The agriculture sector will get eighteen per cent of the over-all concentrate on of forty per cent established aside for priority sector lending. Out of the eighteen per cent, a sub-concentrate on of 8 per cent is earmarked for modest and marginal farmers. A shorter-expression crop personal loan of up to ₹3 lakh is offered to farmers with fascination subvention and with further incentives so that the helpful amount of fascination will come down to 4 per cent, Sitharaman reported.

Accessibility to credit

Taking part in an Agriculture Summit organised by BusinessLine on February 28, a vital Nabard formal experienced reported that only forty five per cent of the modest and marginal farmers get institutional credit even even though they account for virtually eighty five per cent farmers in the country. According to Nabard AGM Niraj Kumar Verma, 75 per cent of farm credit in the country is distributed by commercial banking companies, 13 per cent by cooperative banking companies and twelve per cent regional rural banking companies.

If modest farmers are to be served superior, there is a need to have to increase the credit delivery by means of cooperative banking companies and regional rural banking companies as they have superior obtain to modest farmers, Verma experienced reported.