The Hindu Business Line : Agricultural business

This has reference to the editorial “Workable plan for the unbanked” (Business Line, January 17). Despite nationalisation of banks, branch banking system, lead bank scheme, and so on, millions of farmers, unfortunately, have no access to the formal credit market in India.

The dismal scenario points to the poor implementation of the banking policies and programmes meant to enhance the agricultural production and to ameliorate the economic condition of the farming community.

Agriculture, one must say, is an industry because efforts are mobilised there. Like any other business, finance is the main ingredient for agriculture to reap rich returns.

Increasing indebtedness of farmers, farm suicides, and so on, are the grim reminders to propel the organised money market (banks, in particular) to make a great leap forward towards the much-neglected farm sector. One feels that the cooperative endeavour of nationalised banks, cooperative banks and local governments in all States can stem the rot.

Firstly, every panchayat in the country must provide authentic data of small and marginal farmers, and agricultural labourers living in that area to the lead bank.

Second, banks must get the data and provide the required financial assistance to the needy. And it is imperative that none is left out. This is achievable, provided there is a stern will.

S. Ramakrishnasayee Ranipet

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