The Hindu Business Line : Call to simplify farm loan procedures in Dakshina Kannada

VARIOUS measures to increase credit absorption capacity of farmers were suggested at the sensitisation programme for the managers of rural and semi-urban branches of Vijaya Bank in Mangalore on Saturday.

The Chief Executive Officer of the Dakshina Kannada Zilla Panchayat, Mr H.G. Shivananda Murthy, who spoke on accelerating credit flow to agriculture, said the credit absorption capacity of farmers should be determined before increasing credit flow to them.

The banks advanced only 14 per cent of the total credit to the agriculture sector when the target was 18 per cent. With the Government deciding to increase the level of agriculture credit to 30 per cent of total credit it is essential for the bankers to think about creating credit absorption capacity among farmers.

On the problems being faced by farmers in availing themselves of agriculture credit, he said that there is no single-window agency for agriculture credit disbursement compared to the industrial sector. Procedures for getting loans should be simplified.

Efforts have to be made on increasing yield from the area of production. Productivity per hectare in India is 50 per cent of other nations. On an average, the total agriculture production in India is 10 tonnes a hectare where as it is 20 tonnes a hectare in other countries. In such a situation, area development should be given importance, he said.

As most of the regions in the country are dependent on rainfall for good yield it is essential to focus on other sources of irrigation. Banks could also think of extending credit in this direction, he said.

Agriculture can be beneficial, provided seeds and fertilizers are supplied to the farmer when he needs them. Mr Murthy said that attention should be given on distributing right inputs to farmers at right time. All these factors play important role in increasing credit absorption capacity of farmers, he said.

Farmers face uncertainty till they get the yield and even after a good yield uncertain market rates haunt them. Establishment of cold storage units and processing units can minimise the loss to farmers, he said, and urged the banks to focus their attention on this aspect also.

The role of self-help groups (SHGs) is important in educating farmers. A good network of SHGs can strengthen agriculture and non-farm sectors, helping in achieving the goals of the Government. Above all, branch managers should have service attitude towards farmers, he added.

More Stories on : Farm credit | Farm credit | Karnataka

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