Question : AGRICULTURAL LOAN



(a) whether agricultural loan has increased but agricultural yield has not increased during the last five years;

(b) if so, the reasons therefor;

(c) the specific years during which agricultural loan increased but agricultural yield did not increase; and

(d) the steps taken/proposed to be taken to increase the agricultural yield?

Answer given by the minister

MINISTER OF AGRICULTURE (SHRI SHARAD PAWAR)

(a) to (d): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 611 DUE FOR REPLY ON 9TH MAY, 2005.

(a) to (c): The yield in respect of foodgrains, oilseeds, cotton and jute in 2003-04 was higher than that in 1999-2000. However, in the case of sugarcane, the yield in 2003-04 was lower than that in 1999-2000. The relevant figures are given in the Annexure. With a view to provide a comparative picture of growth in agriculture loan vis-à-vis overall agricultural yield, the figures of the value of agricultural output, covering all crops, per hectare vis-à-vis the disbursement of ground level credit per hectare are also given in the Annexure. While growth in agricultural credit was positive in all the five years, the growth in value of output was negative during 2000- 01 and 2002-03. The main reason for negative growth was deficiency in rainfall both from the South-West monsoon and the post-monsoon and winter season rainfalls. The decline in value of output per hectare in 2000-01 was mainly due to the decline in the production of rabi crops, which reflected the serious deficiency in rainfall during the post monsoon (October to December) and Winter (January & February) seasons. In 2002-03 the decline was caused by decline in the production of both kharif and rabi crops, which reflected the impact of the severe drought that affected several States in the country in 2002.

(d): To increase the productivity of different cereal crops, various schemes like Integrated Crop Development Programme (ICDP) for Coarse Cereals, Wheat, and Rice had been implemented, which have since been subsumed under Macro Management Programme.

In order to increase the production and productivity of oilseeds and pulses, a Centrally Sponsored Scheme `Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize` (ISOPOM) is being implemented since 01.04.2004. Under this scheme, assistance is provided for Production of breeder seed, foundation seed and certified seed, crash programme for quality seed production, distribution of certified seed, and Minikits, infrastructure development, integrated Pest Management etc.

Research strategies to increase the productivity of sugarcane in sugarcane producing States are being implemented through a network of regular and voluntary research centers under All India Coordinated Research Project (AICRP) on Sugarcane. Apart from this, for increasing the production and productivity of sugarcane, a Centrally Sponsored Scheme on Sustainable Development of Sugarcane Based Cropping Systems (SUBACS) was initiated in 1995-96. Since October 2000, the scheme SUBACS has been subsumed under Macro Management Mode of Agriculture. The main thrust of the scheme is on the transfer of improved technology to the farmers through field demonstration, training of farmers, supply of farm implements, enhancing seed production and pest measures etc.


The Centrally Sponsored Scheme under Mini Mission-II of Technology Mission on Cotton is under implementation in 13 cotton growing States. The basic objective of the scheme is to increase production, productivity and improve fibre quality of cotton.

Keeping in view the importance of agriculture, the Union Budget 2005-06 has provided substantial outlays in key areas like irrigation, including micro irrigation, horticulture and marketing. The Budget has also proposed to increase the disbursement of credit to farmers by 30 per cent in 2005-06 over the disbursement of Rs. 1,15,243 crore in 2004-05.

Annexure

Annexure referred to in reply to parts (a) to (c) of the Lok Sabha Starred Question No.611 on Agricultural Loan by Shri Nitish Kumar due for reply on 09.05.2005

Agricultural Yield	(Kg/Hectare)
Crops 1998-99 99-2000 2000-01 2001-02 2002-03 2003-04
Foodgrains 1627 1704 1626 1734 1535 1731 Growth (%) 4.7 -4.6 6.6 -11.5 12.8 Oilseeds 944 853 810 913 691 1067 Growth (%) -9.6 -5.1 12.7 -24.4 54.5 Sugarcane 71203 70935 68577 67370 63576 58986 Growth (%) -0.4 -3.3 -1.8 -5.6 -7.2 Cotton 224 225 190 186 191 309 Growth (%) 0.4 -15.6 -2.1 2.7 61.8 Jute 1875 2005 2026 2182 2139 2186 Growth (%) 6.9 1.0 7.7 -2.0 2.2
Source: Directorate of Economis & Statistics, Department of Agriculture & Cooperation

Trends in per hectare value of agricultural output and agricultural credit
(Rs. at current prices)
Item 1998-99 99-2000 2000-01 2001-02 2002-03 2003-04
Per hectare value of 19493 20251 19932 21698 20941 24768 agricultural output
Growth (%) 3.9 -1.6 8.9 -3.5 18.3 Per hectare credit 1940 2435 2780 3266 3727 4578 Growth (%) 25.5 14.2 17.4 14.1 22.8

Source: Central Statistical Organisation and National Bank for Agriculture and Rural Development.