Lok Sabha Question No. 2669 (UNSTARRED), answered on 2017-08-01
Subject: Crop Loans for Border Area’s Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Gurjeet Singh,Aujla

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 2669

TO BE ANSWERED ON THE 1 ST  AUGUST, 2017

## CROP LOANS FOR BORDER AREA's FARMERS

2669.       SHRI GURJEET SINGH AUJLA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the details of mechanism put in place to provide short and long term crop loans to the farmers at lower interest rate especially to the farmers dwelling along international border and beyond barbed wire; and
- (b) the number of debt ridden farmers in Punjab and the steps taken by the Government to provide  income  support  and  relief  to  them  especially  to  the  farmers  dwelling  along  the international border and beyond barbed wire?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

- (a): The Government of India has been setting annual targets for the flow of ground level credit  (comprising  of  production  loan  and  investment  credit)  to  the  agriculture  sector.    These targets have been suitably increased every year to ensure that farmers get adequate and timely credit for their crop production and agri-allied activities. These targets have been surpassed by Banks for over the years.  The details of targets and the achievement for all banks (Commercial Banks,  Regional  Rural  Banks  (RRBs)  and  Co-operative  Banks)  for  the  last  3  years  and  the current year are as under:

(Rs. in crore)

| Year    | Target       | Achievement   | %Achievement   |
|---------|--------------|---------------|----------------|
| 2014-15 | 800,000.00   | 845,328.23    | 105.67         |
| 2015-16 | 850,000.00   | 915,509.92    | 107.71         |
| 2016-17 | 900,000.00   | 1,065,755.67  | 118.42         |
| 2017-18 | 1,000,000.00 |               |                |

As per Government of India's present policy, interest rate on Short Term Crop Loans to farmers is charged @7% per annum on loans upto Rs.3.00 lakh per farmer.  Further, rebate of 3% is available to farmers for prompt repayment of loans. Thus effectively crop loan is available @4% on loans upto Rs.3.00 lakh to such of the farmers who repay their crop loans within the time limits fixed by the banks.  The scheme is applicable for all farmers in the country.

In order to give  a boost to long term investment credit in agriculture, Government of India has  set  up  a  'Long  Term  rural  credit  Fund'  with  NABARD  for  providing  long  term  refinance support  for  investment  credit  in  agriculture  activity  exclusively  for   Cooperative  banks  (State Cooperative Banks, State  Cooperative Agriculture and Rural Development Banks and Regional Rural Banks). During the year 2016-17, refinance under this fund was provided at 5.40% and 5.15%.  The fund is allocated every year by Reserve Bank of India (RBI) out of the shortfall in priority sector lending targets by Scheduled Commercial Banks.

(b): As  per  National  Sample  Survey  Office  (NSSO)  Survey  (70 th Round,  2013)  'Key Indicators of Debt and Investment in India', 40.19% of Cultivators Households are indebted in Punjab. Details of Loans disbursed under agriculture (crop loan and term loan) during 2016-17 from formal banking sector in the 6 border districts of Punjab is at Annexure.

Annexure

## Details of Loans disbursed under agriculture (crop loan and term loan) during 2016-17 from

formal banking sector in the 6 border districts of Punjab (Rs. Crore)

| S. No.   | Border Districts   | Crop loan disbursed during 2016-17   | Crop loan disbursed during 2016-17   | Term Loan disbursed during 2016-17   | Term Loan disbursed during 2016-17   | Total              | Total    |
|----------|--------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------|----------|
|          |                    | Number of Accounts                   | Amount                               | Number of Accounts                   | Amount                               | Number of Accounts | Amount   |
| 1.       | Amritsar           | 107825                               | 4292.19                              | 23835                                | 949.60                               | 131660             | 5241.79  |
| 2.       | Fazilka            | 94709                                | 2863.87                              | 30037                                | 708.43                               | 124746             | 3572.30  |
| 3.       | Ferozpur           | 103071                               | 4718.46                              | 15763                                | 446.95                               | 118834             | 5165.41  |
| 4.       | Gurdaspur          | 80964                                | 2444.62                              | 29867                                | 828.66                               | 110831             | 3273.28  |
| 5.       | Pathankot          | 10487                                | 378.44                               | 4418                                 | 82.61                                | 14905              | 461.05   |
| 6.       | Tarn Taran         | 53741                                | 3884.05                              | 4770                                 | 571.02                               | 58511              | 4455.07  |
|          | Total              | 450797                               | 18581.63                             | 108690                               | 3587.27                              | 559487             | 22168.90 |

********