Govt meets Rs10 trillion credit disbursal target for FY18

Agriculture ministry will soon bring a proposal before the cabinet for improving lending to small and marginal farmers

New Delhi: Agriculture credit is growing every year and reached Rs10 trillion last fiscal, the government said on Tuesday while stressing upon the need to increase the flow to small farmers as well as providing loan access to tenant cultivators.

The agriculture ministry will soon bring a proposal before the cabinet for improving lending to small and marginal farmers based on the recommendations of the Sarangi committee.

“Agriculture credit flow is going up every year. We have achieved the disbursal target of Rs10 lakh crore in 2017-18 fiscal. The target for the current financial year has been enhanced to Rs11 lakh crore,” said Ashish Kumar Bhutani, joint secretary in ministry of agriculture.

On the sidelines of a conference, organised by industry body Ficci, he said disbursing agriculture credit is not a challenge but the challenge is to give it to right farmers. Bhutani said Rs6.8 trillion was short-term crop loans out of Rs10 trillion credit disbursed last fiscal.

In the short-term crop loans, he said 50% amount was provided to small and marginal farmers. He said the ministry has sought data from banks for better targeting of agriculture credit.

To provide credit access to lessee cultivators, he said government think tank NITI Aayog is working to find a suitable mechanism.

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