Tamil Nadu Government should consider a legislation to enable tenant farmers access bank credit and address the challenge of arable lands being left uncultivated, according to Lalitha Venkatesan, Chief General Manager, National Bank for Agriculture and Rural Development.

Addressing the State level credit seminar, an annual event that outlines the plan for credit flow to agriculture and rural areas, she said the current fallow lands have increased to 11.17 lakh hectare (lh) in 2009-10 as compared with 7.59 lh in 2005-06.

Net cultivated area has dropped to 48.92 lh ha from 52.44 lh during the five-year period.

Agricultural land were being kept fallow due to various reasons such as urbanisation, migration and labour shortage. When lands are leased out to small and marginal farmers or landless labourers, they are not able to secure bank credit.

Tenancy cards

The State Government could consider a law to enable registration of tenant farmers and those on oral lease agreements to get tenancy cards or certificates which would pave way for banks to extend credit, she said.

Storage infrastructure for rural produce is a major gap that needs to be addressed, she said.

The State produces about 108 lakh tonnes of vegetables and fruits but cold storage capacity is about 2.3 lakh tonnes in 136 locations.

Credit potential

The credit potential for 2013-14 is estimated at about Rs 1.06 lakh crore, about 37 per cent more than in 2012-13. The major sectors include crop production, maintenance and marketing for which Rs 39,135 crore is estimated; term loans for agricultural activities Rs 28,063 crore; MSE Sector Rs 20,002 crore and for other priority sectors Rs 19,208 crore.

By the end of the current Five-Year Plan the priority sector credit flow is set to grow to Rs 1.49 lakh crore, according to the plan document.

Related Topics
comment COMMENT NOW