Lok Sabha Question No. 314 (STARRED), answered on 2020-03-16
Subject: Agricultural Credit
Ministry: FINANCE
Asked by: Upendra Singh Rawat, Kaushal Kishore

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

Starred Question No. *314 Answered on Monday, March 16, 2020/Phalguna 26, 1941 (Saka) AGRICULTURAL CREDIT

## *314. SHRI UPENDRA SINGH RAWAT: SHRI KAUSHAL KISHORE:

Will the Minister of FINANCE be pleased to state:

- (a) the quantum of agricultural credit given by Public Sector Banks during each of the last three years and the current year till date, State/ UT-wise and bank-wise and specially districtwise in Uttar Pradesh;
- (b) the details of the percentage of this agricultural credit given in urban areas and rural areas during the said period, State/UT-wise and bank-wise;
- (c) whether the agricultural credit given in urban areas is much higher than the credit given in rural areas and if so, the details thereof and the reasons for this huge gap between the agricultural loans given in urban and rural areas when it is more required in rural areas particularly in Uttar Pradesh; and
- (d) the efforts being made by the Government to give more agricultural loans in rural areas?

## Answer

The Finance Minister (Smt. Nirmala Sitharaman)

- (a) to (d): A statement is laid on the table of the house.

Statement referred in reply to parts (a) to (d) of Lok Sabha Starred Question No. *314 to be answered on 16.03.2020 regarding Agriculture Credit by SHRI UPENDRA SINGH RAWAT and SHRI KAUSHAL KISHORE

(a) to (d): The State-wise and Agency-wise agriculture credit disbursement by Banks for the last three years and current year, as on 31 st December 2019, as reported by National Bank for Agriculture and Rural Development (NABARD) is provided at Annexure I-IV to this reply.

The objective of agriculture credit on pan-India basis is to meet their short term credit requirements for cultivation of crops, investment credit requirement for agriculture and allied activities and other needs.

As informed by NABARD, the share of small and marginal farmers, which is primarily rural based, in agriculture credit during the last 3 years is as under:

## ( Accounts in Lakh and Amount in Rs. Crore)

| Year                                 | 2016-17   | 2017-18     | 2018-19     |
|--------------------------------------|-----------|-------------|-------------|
| Total No. of Agri Loan Accounts      | 1070.68   | 1,131.90    | 1,255.35    |
| No. of Accounts of SMFs              | 771.55    | 845.46      | 931.36      |
| %coverage of SMFs in no. ofA/cs      | 72.06     | 74.69       | 74.19       |
| Loan disbursed to SMFs               | 5,34,351  | 5,80,457.42 | 6,33,661.43 |
| %coverage of SMFs in loan disbursed. | 50.15     | 49.93       | 50.42       |

RBI and NABARD have reported that District wise data for agriculture credit and data on percentage of agriculture credit given to urban areas and rural areas, are not maintained centrally by them. In this regard, NABARD has also informed that since 2004, Service Area Approach has been done away with and now the farmer can avail credit from any of the bank branches. Further, agriculture credit is disbursed on the basis of land holdings of farmers, which is an omnibus concept, without any urban- rural distinction.

The Government/RBI has taken the various initiatives to facilitate hassle free credit to farmers. Some of the major initiatives are as under:

-  Government fixes agriculture credit disbursement targets for the banking sector every year and banks have consistently surpassed these targets. Details of target and achievement made in respect of agriculture credit flow during the last three years as reported by NABARD is as under:

(Amount in ` crore)

| Year    | Target    | Achievement   |
|---------|-----------|---------------|
| 2016-17 | 9,00,000  | 10,65,755.67  |
| 2017-18 | 10,00,000 | 11,62,616.98  |
| 2018-19 | 11,00,000 | 12,56,829.62  |

Source: NABARD

-  The Master Directions on Priority Sector Lending (PSL) issued by RBI provides that within the overall target of 40% for priority sector, 18% has been earmarked for lending

to agriculture sector. Within the 18% target for agriculture sector, a sub-target of 8% for small and marginal farmers has been fixed to help in increasing the flow of credit to small and marginal farmers.

-  Government of India implements an interest subvention scheme under which short term crop loans up to ` 3.00 lakh are provided to farmers at a reduced interest rate of 7% p.a. The scheme provides interest subvention of 2% per annum to Banks on use of their own resources. Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.
-  The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of KCC to farmers. The scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers to meet their short term credit requirements for cultivation of crops, investment credit requirement for agriculture and allied activities and other needs.
-  The benefits of KCC along with interest subvention have been extended to Animal Husbandry and Fisheries farmers.
-  To enhance coverage of small and marginal farmers in the formal credit system, RBI has decided to raise the limit for collateral-free agriculture loans from ` 1 lakh to ` 1.6 lakh.
-  The requirement of 'no dues' certificate has also been dispensed with in respect of small loans up to ` 50,000 availed by small and marginal farmers, share-croppers and the like and, instead, only a self-declaration from the borrower is required.
-  To bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit, Joint Liability Groups (JLGs) have been promoted by banks.
-  NABARD provides short term refinance to Cooperative Banks and Regional Rural Banks (RRBs) through Short Term Cooperative Rural Credit (Refinance) Fund (STCRC Fund) and Short Term Regional Rural Banks (STRRB) Fund respectively, at concessional rate of interest.
-  Further, to encourage long term investment credit in agriculture, NABARD provides refinance support to Cooperative Banks and RRBs through Long Term Rural Credit Fund (LTRCF) at a concessional rate of interest for their lending towards investment activities in agriculture.

*****

Annexure I as referred to in reply of Lok Sabha Starred Question No. *314 for 16.03.2020 Agriculture Credit Disbursement Data for the period 2016-17

(Rs. Crore )

| S.No.   | State/UT          | Cooperative Banks   | Regional Rural Banks   |   Commercial Banks |       All Agency |
|---------|-------------------|---------------------|------------------------|--------------------|------------------|
| 1       | DELHI             | 7.17                | -                      |           19934.5  |  19941.7         |
| 2       | HARYANA           | 9746.98             | 5535.39                |           34198.7  |  49481.1         |
| 3       | HIMACHALPRADESH   | 1427.24             | 522.64                 |            4166.26 |   6116.15        |
| 4       | JAMMU &KASHMIR    | 9.55                | 336.68                 |            6950.51 |   7296.74        |
| 5       | PUNJAB            | 13557.02            | 5967.04                |           54777.4  |  74301.5         |
| 6       | RAJASTHAN         | 14130.31            | 12869.02               |           47304.5  |  74303.9         |
| 7       | CHANDIGARH UT     | -                   | -                      |            1405.95 |   1405.95        |
| 8       | ARUNACHAL PRADESH | 48.23               | 3.40                   |              80.95 |    132.59        |
| 9       | ASSAM             | 13.89               | 420.91                 |            5667.28 |   6102.07        |
| 10      | MANIPUR           | 4.67                | 15.65                  |             230.8  |    251.12        |
| 11      | MEGHALAYA         | 32.92               | 42.63                  |             292.77 |    368.31        |
| 12      | MIZORAM           | 14.51               | 59.38                  |              40.47 |    114.36        |
| 13      | NAGALAND          | 34.99               | 0.37                   |              94.04 |    129.39        |
| 14      | SIKKIM            | 14.16               | -                      |             147.54 |    161.7         |
| 15      | TRIPURA           | 74.39               | 419.34                 |            1019.39 |   1513.13        |
| 16      | A &NISLAND        | 38.22               | -                      |              96.77 |    134.98        |
| 17      | BIHAR             | 342.15              | 14256.24               |           11586.2  |  26184.6         |
| 18      | JHARKHAND         | 3.23                | 1481.01                |            2895.75 |   4379.99        |
| 19      | ODISHA            | 10318.44            | 1394.28                |            9552.25 |  21265           |
| 20      | WEST BENGAL       | 3474.18             | 1586.80                |           29834.8  |  34895.7         |
| 21      | CHHATTISGARH      | 3318.46             | 476.65                 |            8442.31 |  12237.4         |
| 22      | MADHYAPRADESH     | 11877.86            | 5330.64                |           38940.6  |  56149.1         |
| 23      | UTTARAKHAND       | 562.36              | 238.89                 |            5704.19 |   6505.43        |
| 24      | UTTAR PRADESH     | 6466.31             | 21915.22               |           53202.5  |  81584           |
| 25      | GOA               | 37.51               | -                      |             973.76 |   1011.28        |
| 26      | GUJARAT           | 12911.24            | 3591.17                |           37774.3  |  54276.7         |
| 27      | MAHARASHTRA       | 17115.70            | 2113.29                |           62154.8  |  81383.8         |
| 28      | D&NHAVELIUT       | 1.58                | -                      |              78.59 |     80.17        |
| 29      | DAMAN&DIUUT       | -                   | -                      |              34.58 |     34.58        |
| 30      | ANDHRA PRADESH    | 9620.34             | 12358.92               |           70889.4  |  92868.6         |
| 31      | TELANGANA         | 5933.81             | 6692.55                |           55259    |  67885.4         |
| 32      | KARNATAKA         | 11916.71            | 8764.41                |           57401.6  |  78082.7         |
| 33      | KERALA            | 4290.47             | 9161.74                |           54286.6  |  67738.8         |
| 34      | PUDUCHERRY        | 3.07                | 429.78                 |            4857.24 |   5290.08        |
| 35      | TAMILNADU         | 5410.65             | 7232.17                |          119502    | 132145           |
| 36      | LAKSHADWEEP UT    | -                   | -                      |               3.27 |      3.27        |
|         | GRAND TOTAL       | 142758.30           | 123216.19              |          799781    |      1.06576e+06 |

Source: NABARD

Annexure II as referred to in reply of Lok Sabha Starred Question No. *314 for 16.03.2020 Agriculture Credit Disbursement Data for the period 2017-18 (Rs. Crore)

| S.N o.      | State/UT          | Cooperati ve Banks   | Regional Rural Banks   |   Commercial Banks |       All Agency |
|-------------|-------------------|----------------------|------------------------|--------------------|------------------|
| 1           | DELHI             | 4.98                 | -                      |           19522.8  |  19527.8         |
| 2           | HARYANA           | 10074.81             | 7373.97                |           37932.7  |  55381.5         |
| 3           | HIMACHAL PRADESH  | 9208.85              | 725.90                 |            4403.65 |  14338.4         |
| 4           | JAMMU & KASHMIR   | 14.14                | 379.06                 |           10910.7  |  11303.9         |
| 5           | PUNJAB            | 9484.92              | 6587.00                |           57096.9  |  73168.9         |
| 6           | RAJASTHAN         | 14725.79             | 13709.61               |           52478.2  |  80913.6         |
| 7           | CHANDIGARH UT     | -                    | -                      |            2357.2  |   2357.2         |
| 8           | ARUNACHAL PRADESH | 20.65                | 15.81                  |              45.29 |     81.74        |
| 9           | ASSAM             | 18.95                | 659.01                 |            6077.34 |   6755.3         |
| 10          | MANIPUR           | 18.78                | 21.59                  |             214.21 |    254.59        |
| 11          | MEGHALAYA         | 34.39                | 62.89                  |             253.45 |    350.74        |
| 12          | MIZORAM           | 12.94                | 115.52                 |              46.48 |    174.94        |
| 13          | NAGALAND          | 87.88                | 1.23                   |             115.91 |    205.02        |
| 14          | SIKKIM            | 3.58                 | -                      |             121.39 |    124.97        |
| 15          | TRIPURA           | 273.48               | 514.49                 |            1537.76 |   2325.73        |
| 16          | A &NISLAND        | 27.60                | -                      |              92.63 |    120.24        |
| 17          | BIHAR             | 2548.00              | 14879.22               |           11785.7  |  29212.9         |
| 18          | JHARKHAND         | 3.23                 | 520.69                 |            3254.88 |   3778.8         |
| 19          | ODISHA            | 11124.78             | 1380.35                |           10265.9  |  22771.1         |
| 20          | WEST BENGAL       | 3991.57              | 2961.48                |           33914.8  |  40867.8         |
| 21          | CHHATTISGARH      | 4397.00              | 480.56                 |           10256.9  |  15134.4         |
| 22          | MADHYAPRADESH     | 12787.50             | 5149.99                |           42099.4  |  60036.9         |
| 23          | UTTARAKHAND       | 1260.44              | 253.72                 |            6362.32 |   7876.49        |
| 24          | UTTAR PRADESH     | 3932.82              | 27157.55               |           52957.7  |  84048.1         |
| 25          | GOA               | 34.23                | -                      |            1203.92 |   1238.15        |
| 26          | GUJARAT           | 13759.68             | 4040.01                |           44758.2  |  62557.9         |
| 27          | MAHARASHTRA       | 11885.37             | 1011.50                |           59581.9  |  72478.8         |
| 28          | D&NHAVELIUT       | -                    | -                      |              65.84 |     65.84        |
| 29          | DAMAN&DIUUT       | -                    | -                      |              33.26 |     33.26        |
| 30          | ANDHRA PRADESH    | 11085.57             | 15196.98               |           86072.8  | 112355           |
| 31          | TELANGANA         | 5657.51              | 7526.40                |           45647.5  |  58831.4         |
| 32          | KARNATAKA         | 11619.13             | 9880.95                |           57643.6  |  79143.7         |
| 33          | KERALA            | 4772.00              | 11274.98               |           68129.4  |  84176.3         |
| 34          | PUDUCHERRY        | 2.17                 | 502.65                 |            2101.49 |   2606.32        |
| 35          | TAMILNADU         | 7448.38              | 8833.21                |          141732    | 158014           |
| 36          | LAKSHADWEEP UT    | -                    | -                      |               5.06 |      5.06        |
| GRAND TOTAL |                   | 150321.14            | 141216.31              |          871080    |      1.16262e+06 |

Source: NABARD

Annexure III as referred to in reply of Lok Sabha Starred Question No. *314 for 16.03.2020 Agriculture Credit Disbursement Data for the period 2018-19

(Rs. Crore)

| S.N o.       | State/UT         | Cooperative Banks   | Regional Rural Banks   |   Commercial Banks |       All agency |
|--------------|------------------|---------------------|------------------------|--------------------|------------------|
| 1            | DELHI            | 3.80                | -                      |           24326.9  |  24330.7         |
| 2            | HARYANA          | 10490.89            | 8279.93                |           44578.3  |  63349.1         |
| 3            | HIMACHAL PRADESH | 1650.91             | 892.12                 |            4326.81 |   6869.84        |
| 4            | JAMMU & KASHMIR  | 25.88               | 491.90                 |           12600    |  13117.8         |
| 5            | PUNJAB           | 9551.50             | 6472.33                |           61432.6  |  77456.4         |
| 6            | RAJASTHAN        | 12905.93            | 14302.08               |           55872.9  |  83080.9         |
| 7 CHANDIGARH | UT               | -                   | -                      |            1992.45 |   1992.45        |
| 8 PRADESH    | ARUNACHAL        | 4.79                | 5.43                   |              45.6  |     55.82        |
| 9            | ASSAM            | 21.12               | 245.57                 |            6979.49 |   7246.18        |
| 10           | MANIPUR          | 40.74               | 23.31                  |             184.37 |    248.42        |
| 11           | MEGHALAYA        | 21.28               | 79.42                  |              98.54 |    199.23        |
| 12           | MIZORAM          | 14.55               | 99.67                  |             248.56 |    362.77        |
| 13           | NAGALAND         | 40.32               | 0.89                   |             168.02 |    209.23        |
| 14           | SIKKIM           | 4.76                | -                      |             155.17 |    159.93        |
| 15           | TRIPURA          | 236.63              | 705.39                 |            1748.85 |   2690.87        |
| 16           | A &NISLAND       | 13.32               | -                      |             116.64 |    129.96        |
| 17           | BIHAR            | 2799.86             | 16603.89               |           16423.9  |  35827.7         |
| 18           | JHARKHAND        | 6.72                | 522.58                 |            3562.36 |   4091.66        |
| 19           | ODISHA           | 12971.61            | 1655.97                |           12788.4  |  27416           |
| 20           | WEST BENGAL      | 4480.74             | 4445.44                |           37400.2  |  46326.4         |
| 21           | CHHATTISGARH     | 3700.79             | 261.85                 |            6428.3  |  10390.9         |
| 22           | MADHYA PRADESH   | 12488.23            | 5041.09                |           43945    |  61474.3         |
| 23           | UTTARAKHAND      | 1289.25             | 1343.69                |            7702.87 |  10335.8         |
| 24           | UTTAR PRADESH    | 5314.92             | 25859.75               |           57885.7  |  89060.4         |
| 25           | GOA              | 33.02               | -                      |            1286.58 |   1319.61        |
| 26           | GUJARAT          | 13664.67            | 4720.02                |           47726.5  |  66111.2         |
| 27           | MAHARASHTRA      | 12927.99            | 1946.46                |           68695.1  |  83569.5         |
| 28           | D&NHAVELIUT      | -                   | -                      |              70.65 |     70.65        |
| 29           | DAMAN&DIUUT      | -                   | -                      |              43.86 |     43.86        |
| 30           | ANDHRA PRADESH   | 11571.66            | 18136.61               |           93073.3  | 122782           |
| 31           | TELANGANA        | 5608.30             | 6350.28                |           45584.6  |  57543.2         |
| 32           | KARNATAKA        | 11350.52            | 7147.15                |           54921.1  |  73418.7         |
| 33           | KERALA           | 4520.37             | 12670.60               |           75265.8  |  92456.7         |
| 34           | PUDUCHERRY       | 7.95                | 617.04                 |            2241.47 |   2866.46        |
| 35           | TAMILNADU        | 14577.20            | 10746.43               |          164899    | 190222           |
| 36           | LAKSHADWEEP UT   | -                   | -                      |               2.92 |      2.92        |
|              | GRAND TOTAL      | 152340.20           | 149666.90              |          954823    |      1.25683e+06 |

Source: NABARD

Annexure IV as referred to in reply of Lok Sabha Starred Question No. *314 for 16.03.2020 Agriculture Credit Disbursement Data for the period 2019-20 (Provisional) (AS ON 31-122019)

(Rs. Crore)

| S.N o.       | State/UT         | Cooperative Banks   | Regional Rural Banks   |   Commercial Banks |       All agency |
|--------------|------------------|---------------------|------------------------|--------------------|------------------|
| 1            | DELHI            | 2.13                | -                      |           16406.5  |  16408.6         |
| 2            | HARYANA          | 8204.35             | 6205.91                |           34511.4  |  48921.7         |
| 3            | HIMACHAL PRADESH | 1329.36             | 756.86                 |            3663.11 |   5749.33        |
| 4            | JAMMU & KASHMIR  | 9.42                | 340.24                 |            8936.95 |   9286.61        |
| 5            | PUNJAB           | 7808.97             | 5915.72                |           49725.3  |  63450           |
| 6            | RAJASTHAN        | 7438.81             | 12174.08               |           51226.9  |  70839.8         |
| 7 CHANDIGARH | UT               | -                   | -                      |             992.41 |    992.41        |
| 8 PRADESH    | ARUNACHAL        | 2.22                | 1.65                   |              41.29 |     45.15        |
| 9            | ASSAM            | 18.60               | 283.25                 |            5256.72 |   5558.57        |
| 10           | MANIPUR          | 32.67               | 10.72                  |             170.77 |    214.16        |
| 11           | MEGHALAYA        | 22.52               | 37.80                  |              74.93 |    135.25        |
| 12           | MIZORAM          | 10.45               | 83.74                  |              24.52 |    118.71        |
| 13           | NAGALAND         | 30.81               | 1.20                   |             100.99 |    133           |
| 14           | SIKKIM           | 5.19                | -                      |             129.21 |    134.4         |
| 15           | TRIPURA          | 215.94              | 529.85                 |            1174.07 |   1919.86        |
| 16           | A &NISLAND       | 6.20                | -                      |              99.19 |    105.39        |
| 17           | BIHAR            | 1289.65             | 11559.83               |           13814.2  |  26663.7         |
| 18           | JHARKHAND        | 4.61                | 375.84                 |            3666.83 |   4047.28        |
| 19           | ODISHA           | 7570.23             | 1353.65                |           10755.4  |  19679.2         |
| 20           | WEST BENGAL      | 3803.90             | 3739.70                |           31358.5  |  38902.1         |
| 21           | CHHATTISGARH     | 4088.74             | 292.78                 |            6992.93 |  11374.5         |
| 22           | MADHYA PRADESH   | 10042.30            | 3631.79                |           34355.7  |  48029.8         |
| 23           | UTTARAKHAND      | 1114.31             | 191.03                 |            6426.26 |   7731.6         |
| 24           | UTTAR PRADESH    | 5495.70             | 19967.68               |           51885.1  |  77348.5         |
| 25           | GOA              | 28.74               | -                      |             735.76 |    764.5         |
| 26           | GUJARAT          | 13411.25            | 4818.94                |           40227.4  |  58457.6         |
| 27           | MAHARASHTRA      | 9755.06             | 1433.70                |           51668.9  |  62857.7         |
| 28           | D&NHAVELIUT      | -                   | -                      |              72.7  |     72.7         |
| 29           | DAMAN&DIUUT      | -                   | -                      |              13.63 |     13.63        |
| 30           | ANDHRA PRADESH   | 7392.52             | 17391.88               |           81518.9  | 106303           |
| 31           | TELANGANA        | 3329.84             | 6232.99                |           37291.4  |  46854.3         |
| 32           | KARNATAKA        | 9388.92             | 7307.99                |           44764    |  61460.9         |
| 33           | KERALA           | 2706.25             | 10122.85               |           59979.9  |  72809           |
| 34           | PUDUCHERRY       | 5.47                | 520.92                 |            1981.34 |   2507.72        |
| 35           | TAMILNADU        | 9906.70             | 8689.23                |          144693    | 163289           |
| 36           | LAKSHADWEEP UT   | -                   | -                      |               3.27 |      3.27        |
|              | GRAND TOTAL      | 114471.84           | 123971.80              |          794740    |      1.03318e+06 |

Source: NABARD