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VIJAYAWADA, Dec. 17

FARMERS would be able to compete in the international market only if the interest rates on agricultural loans are brought down below 6 per cent, as in most other countries, and the commercial banks step up priority sector lending, especially to agriculture, Mr T. Dasaradha Janardhan, Chairman of National Co-operative, Agriculture and Rural Development Bank Federation, has said.

At a press conference here on the occasion of the launch of deposit mobilisation drive by the Krishna District Co-operative Central Bank, Mr Janardhan, also the Chairman of the Andhra Pradesh Co-operative Bank, said the commercial banks were falling way below the target of 18 per cent to agriculture and the direct lending on the aggregate amounted only to 11 per cent.

The rest of the funds were being lent to the Rural Infrastructure Development Fund.

In credit disbursement to the rural sector, especially agriculture, the co-operative banks were playing a vital role without much support from the RBI or the Government.

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