(a) whether the share of cooperative banks in providing loans for agriculture and related
sectors has been declining continuously;
(b) if so, the reasons therefor;
(c) the details of loans available for agriculture during the last three years;
(d) whether the Government has identified the obstacles in providing easy loan facilities;
and
(e) if so, the steps taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)
(a)&(b): Yes, Sir. The share of Cooperative Banks to total agri-credit flow has declined
from 33.97% in 2002-03 to 20.90% during 2006-07.
The share of Cooperative Banks has been declining due to the rapid growth in credit
flow achieved by the Commercial Banks and RRBs. Besides, the Cooperatives, over the
years, have developed a number of structural, organizational, managerial and financial
weaknesses which have hampered their capacity to purvey ground level credit. Some of the
reasons are enumerated below: -
(i) As on 31 March, 2007, 7 SCBs and 127 DCCBs were not complying with the
provisions of Section 11 (1) of the B.R.Act, 1949 and 8 SCARDB & 458
PACRDBs were running in losses during the 2004-05.
(ii) The Cooperative do not have much financial resources of their own and depend on
the higher tiers including NABARD for supplementing their resources.
(iii) High levels of overdues affects the recycling of funds and, as such, translates into
lesser quantum of funds available for lending. The waiver of loans/interest by
State Governments vitiates the recovery climate and prevents Cooperatives from
recovering loans and recycling credit.
(c): The details of loans available for agriculture during the last three years is as
under:
(Rs. in Crore) Agency 2004-05 2005-06 2006-07
Comm. Banks 81481 125477 140382 Coop. Banks 31424 39786 42480 RRBs 12404 15223 20434
Total 125309 180486 203296