(a) whether the Government have drawn out a detailed strategy and pian for the RBI/NABARD
in consultation with Ministry of Agriculture to achieve the target of Rs. 7,50,000 crores
for agricultural credit from commercial banks to be disbursed during the Tenth Five
Year Pian; and
(b) if so. the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) and (b) The 10th Five Year Plan document has estimated the credit requirement for
agriculture at Rs. 7,36,570 crore of which an amount of Rs. 3,59,701 crore is estimated
as production credit and Rs. 3,76,869 crore for investment credit. These projections have
been made in respect of flow of credit to agriculture and allied activities by all banks
viz. commercial banks, co-operative banks and Regional Rural Banks (RRBs) against the
background for achieving a 4 per cent growth rate in agricultural Gross Domestic Product (GDP).
The 10th Plan further emphasizes progressive institutionalizatton for providing timely and
adequate credit support to farmers with particular focus on small/ marginal farmers and
weaker sections of society to enable them to adopt modern technology and improved practices
for increasing agricultural production and productivity. Several measures have been taken
by RBi/NABARD for stepping up of lending for agriculture and allied activities by Commercial
Banks, Cooperative Banks and Regional Rural Banks (RRBs). These steps included:
(i) Advice to Commercial Banks to step up their direct lending to agriculture so as to
achieve the target of 18 per cent of net bank credit;
(ii) Advice to Public Sector Banks tg prepare Special Agriculture Credit Plans (SACP) for
increasing credit flow to agriculture;
(iii) Coverage of all eligible farmers by 31st March, 2004 under the Kisan Credit Card
Scheme; and
(iv) Refinance to Banks at concessional rate of interest to enable them to increase the
credit flow to agriculture sector.