Annual Report 2009-2010 - Department of Agriculture & Co-operation

Annual Report 2009-2010
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8.7 Rate of Interest on Agricultural Loans:
From Kharif 2006-07, farmers are receiving crop
loans up to a principal amount of Rs. 3 lakh at a
seven per cent rate of interest. Additional
subvention of one per cent will be paid from this
year, as an incentive to those farmers who repay
short term crop loans on schedule, resulting in
bringing down the rate of interest to six per cent
per annum.
8.8 Rehabilitation Package for Distressed
Farmers: A rehabilitation package of
Rs. 16,978.69 crore for 31 suicide-prone
districts in four states, namely, Andhra Pradesh,
Maharashtra, Karnataka, and Kerala, is under
implementation. The rehabilitation package aims
at establishing a sustainable and viable farming
and livelihood support system through debt relief
to farmers, improved supply of institutional
credit, a crop-centric approach to agriculture,
assured irrigation facilities, watershed
management, better extension and farming
support services and subsidiary income
opportunities through horticulture, livestock,
dairying, fisheries, etc. So far, Rs. 17,649.24 crore
(as on 31 December, 2009) has been released to
these states. The Government has further carried
out a mid-term modification and has extended
the period of implementation for non-credit
components by two more years i.e., 30
September 2011.
8.9 The Government has also approved a
package for the development of the Kuttanad
wetland eco-system and mitigation of agrarian
distress in Idukki district of Kerala, envisaging
an outlay of Rs. 1,840.75 crore and Rs. 764.45
crore respectively.
8.10 Flow of Credit-Achievements:
A. 2008-09 (1 April 2008 to 31 March 2009)
i) The target of agriculture credit flow
for the year 2008-09 was fixed at
Rs. 2,80,000 crore and the achievement
as on 31 March 2009 was Rs. 3,01,908
crore, forming 107.82 per cent of the
target.
ii) During this period, around 51.74 lakh and
6.05 lakh new farmers have been
financed by Public and Private Sector
Commercial Banks respectively. Further,
RRBs have financed 23.23 lakh new
farmers during this period. Thus, the total
number of new farmers financed by CBs
and RRBs together formed 81.02 lakh,
against the target fixed at 50 lakh for the
year. In addition to this, cooperative banks
have financed 13.88 lakh new farmers
during this period. Thus, new farmers
financed by the banking system totalled
94.90 lakh.
B. 2009-10 (1 April 2009 to 30 November
2009)
i) The target of agriculture credit flow for
the year 2009-10 was fixed at Rs.
3,25,000 crore and the achievement as
on 30 November 2009 is Rs. 1,96,228
crore, forming 60.37 per cent of the
target.
ii) During the period up to November 2009,
around 26.85 lakh and 3.79 lakh new
farmers have been financed by the
Public and Private Sector Commercial
Banks respectively. Further, RRBs have
financed 11.96 lakh new farmers during
this period. Thus, the total number of
new farmers financed by CBs and RRBs
together formed 42.60 lakh, against the
target fixed at 50 lakh for the year. In
addition to this, cooperative banks have
financed 8.72 lakh new farmers during
this period. Thus, new farmers financed
by the banking system totalled 51.32
lakh.