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The Government has disbursed about Rs 1.36 lakh crore of agriculture credit to farmers in the first quarter of the current financial year.
“The target of credit flow for the year 2012-13 has been fixed at Rs 5.75 lakh crore and achievement as on June 30, 2012 is Rs 1,35,956.49 crore,” according to the background note prepared for the Economic Editors conference.
The target of credit flow for the year 2011-12 has been fixed at Rs 4.75 lakh crore and achievement as on March 31, 2012 is Rs 5,11,029.09 crore, forming more than 108 per cent of the target, the note added.
From kharif 2006-07, farmers are receiving crop loans up to a principal amount of Rs 3 lakh at 7 per cent of interest.
In 2009-10 fiscal, the Government provided an additional one per cent interest subvention to those farmers who repaid their short-term crop loans as per schedule.
The Government raised this subvention to two per cent from 2010-11 and to three per cent from 2011-12, it added.
Agriculture credit plays an important role in improving farm production, productivity and mitigating the distress of farmers, it said.
Agriculture and allied sectors, as per the revised estimates released by the Central Statistics Office (CSO), is expected to grow at 2.8 per cent during 2011-12 fiscal, the note said.
This averages to a growth rate of 3.3 per cent during the 11th Five Year Plan (2007-12), which is higher than that achieved during the 9th Five Year Plan (2.5 per cent) and 10th Five Year Plan (2.4 per cent) at 2004-05 prices, it added.
The Gross Capital Formation (GCF) in agriculture as a proportion to the total GCF showed a decline from 10.5 per cent in 1999-2000 to 7.2 per cent in 2010-11 at 2004-05 prices, it said.
The GCF in agriculture relative to GDP in this sector improved from 13.1 per cent in 1999-2000 to 20.1 per cent in 2010-11 at 2004-05 prices, it added.
The average share of GCF to GDP in agriculture and allied sector in the first four years of the 11th Five Year plan was 18.8 per cent at 2004-05 prices, it said.
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