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Lack of institutional credit is responsible for the crisis in the farming sector despite a good crop this year, according to Mr Tapan Sen, MP.
Making a special mention in the Lok Sabha, he said two-thirds of the farming community, mostly small and marginal farmers, does not have access to institutional credit.
RURAL CREDIT
The need of the hour is to widen and strengthen rural credit by focusing flow of rural credit to small and marginal farmers, he said.
Farmers are faced with a terminal crisis. Gains in production are not accruing to producers but are being expropriated by vested interests and money lenders.
Unfortunately, this has also coincided with wholly unwarranted tinkering with rural credit institutions.
The National Bank for Agriculture and Rural Development (Nabard) and Regional Rural Banks (RRBs) are being weakened, affecting their functional autonomy, he alleged.
OFFLOADING STAKE
As recommended by a US consultant, Nabard has closed down 15 district development manager offices, besides putting a stop to recruitment of manpower.
The government has decided to offload its share in the RRBs to sponsor commercial banks.
This will weaken the autonomy of RRBs, dilute their functional focus towards rural credit and establish dominance of sponsor commercial bank, Mr Sen said.
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