THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (e): The Government of India had in June, 2004 announced a package for
doubling the flow of credit to agriculture and allied activities in a period of
three years commencing from 2004-05 over the amount disbursed during the year
2003-04. This target was achieved in two years. Thereafter, the Government of
India has been setting an annual target for the flow of credit to the agriculture
sector. The target and achievement of Scheduled Commercial Banks during the last
three years are as under:
Year Target Amt. Achievement % Achvt. to target (in crore) (in crore)
2008-09 195,000 228,951.31 117.41
2009-10 250,000 285,799.73 114.32
2010-11 280,000 332,705.98 118.82
In terms of Reserve Bank`s extant guidelines on lending to priority sector, a
target of 40 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent
amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31
of the previous year, has been mandated for lending to the priority sector by
domestic scheduled commercial banks, both in the public and private sector.
Within this, a sub-target of 18 per cent of ANBC or Credit Equivalent amount of
OBE; whichever is higher, as on March 31 of the previous year, has been mandated
for lending to agriculture sector.
The advances to the agriculture sector by public sector banks during the last 3
years is given at Annex.
The Government of India and Reserve Bank of India {RBI) has taken several measures
to ensure availability of credit to farmers (including small and marginal farmers)
through banks. These include:
# The Interest Subvention Scheme is being implemented by the Government of
India since 2006-07 to make short-term crop loans upto Rs. 3 lakh for a period of
one year available to farmers at the interest rate of 7 percent per annum. The
Government of India has since 2009-10 been providing additional interest subvention
to prompt payees farmers, i.e., those who repay their loan in time.The additional
subvention was 1% in 2009-10 and 2% in 2010-11. This is being increased to 3% in
2011-12.
# The Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 has
de-clogged the lines of credit that were clogged due to the debt burden on the farmers.
# Banks have been advised to dispense with the requirement of `no dues`
certificates for small loans up to Rs 50,000 to small and marginal farmers,
share-croppers and the like and instead obtain a self-declaration from the borrower.
# RBI has advised banks to waive margin/security requirements for
agricultural loans upto Rs 1,00,000.
