Lok Sabha Question No. 3362 (UNSTARRED), answered on 2023-03-21
Subject: Agricultural Credit to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Badruddin Ajmal, S.R. Parthiban

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

## LOK SABHA UNSTARRED QUESTION No. 3362

TO BE ANSWERED ON 21 st  March, 2023

## AGRICULTURAL CREDIT TO FARMERS

3362.    SHRI M. BADRUDDIN AJMAL, SHRI PARTHIBAN S. R.:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष ए ं व िकसान काण मंी be pleased to state:

- (a) the  details  of  the  efforts  made  by  the  Government  to  increase  the  income  of  the farmers in the country, especially the farmers of Tamil Nadu during each of the last three years and the current year; (b) whether the Government is considering to provide direct credit facility to the farmers; (c) if  so,  the  details thereof and the manner in which farmers especially small farmers would be benefitted by this effort; (d) the amount disbursed as agricultural credit to farmers in year 2020-2021 and 20212022, State-wise; (e) the  size/class  of  farmers  who  were  benefitted  from  agricultural  credit  and  the quantum of credit for each class during 2020-2021 and 2021-2022, State-wise; and the amount of agricultural credit which was planned to be disbursed and the actual
- (f) disbursal in 2020-2021 and 2021-2022, State-wise?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष ए ं व िकसान काण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): `The  Government  of  India,  has  inter-alia,  taken  major  initiatives  to  increase  the income  of  the  farmers  in  the  country.  These  schemes/initiatives  include  KCC  Saturation drive to ensure concessional institutional credit to all eligible farmers in the country, income support  of  Rs.  6000  per  year  to  farm  families  in  3  equal  installments  through  Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), formation  of  Joint  Liabilities  Groups  (JLG's),  Rashtriya  Krishi  Vikas  Yojana  (RKVY), National  Food  Security  Mission  (NFSM),  National  Agriculture  Market  (e-NAM),  National Mission for Sustainable Agriculture (NMSA), Pradhan Mantri Kisan Maan-DhanYojana (PMKMY).

(b) & (c): With a view to ensuring availability of agriculture credit at a reasonable cost/at a reduced rate, the Government of India, through budget announcement for the year 200607,  introduced  an  Interest  Subvention  Scheme  for  short  term  crop  loans  up  to  Rs.  3.00 lakh.  In  the  year  2018-19,  the  Scheme  was  extended  to  fisheries  and  animal husbandry farmers (upto a maximum limit of Rs. 2 lakhs). The scheme has been renamed as Modified Interest  Subvention  Scheme  (MISS)  from  the  scheme  year  2021-22.  Under  this  scheme short  term  loans  for  agriculture  and  allied  activities  including  animal  husbandry,  dairy, fisheries etc.upto Rs.3.00 lakh is available to farmers at an interest rate of 7% per annum. For this, at present, interest subvention of @ 1.5% is being given to financial institutions. Additional 3% Prompt Repayment Incentive (PRI) is also given to the farmers for prompt and timely repayment of loans; thus reducing the effective rate of interest to 4% per annum. In case of short term loan availed for allied activities only, the loan amount upto Rs. 2.00 lakh is available at the rate of 7%. Additional 3% PRI is also available on it.

With  the  objective  of  protecting  the  Small  and  Marginal  Farmers  (SMFs)  against distress sale of their produce, the benefit of Interest Subvention is available for post-harvest loans  against  Negotiable  Warehouse  Receipts  (NWRs)  which  is  given  at  par  with  the interest subvention on crop loans for a further period of six months post-harvest to SMFs having Kisan Credit Cards (KCCs).

This  scheme  is  being  implemented  through  Public  Sector  Banks,  Private  Sector Banks,  Small  Finance  Banks  (reimbursement  through  RBI),  Regional  Rural  Banks  and Cooperative  Banks,  Computerized  PACS  ceded  with  the  scheduled  commercial  banks (reimbursement through NABARD).

(d) to (f): State-wise  target  and  amount  disbursed  as  agriculture  credit  along  with agriculture credit disbursed to small and marginal farmers is given in Annexure-I.

Annexure-I Agriculture Credit Target and Disbursement 2020-21 & 2021-22 Rs. In crore

| S.No.   | State/UT                  | 2020-21   | 2020-21      | 2020-21               | 2020-21   | 2020-21      | 2020-21               |
|---------|---------------------------|-----------|--------------|-----------------------|-----------|--------------|-----------------------|
| S.No.   | State/UT                  | Target    | Disbursement | Disbursement to SF/MF | Target    | Disbursement | Disbursement to SF/MF |
| 1       | DELHI                     | 1499      | 14241        | 597                   | 1739      | 18148        | 2305                  |
| 2       | HARYANA                   | 70000     | 60655        | 29935                 | 77197     | 67071        | 38365                 |
| 3       | HIMACHAL PRADESH          | 12000     | 7476         | 6183                  | 12200     | 8525         | 6908                  |
| 4       | JAMMU and KASHMIR         | 16001     | 14753        | 9309                  | 16142     | 14283        | 8614                  |
| 5       | PUNJAB                    | 92001     | 69170        | 30095                 | 96865     | 74437        | 34534                 |
| 6       | RAJASTHAN                 | 109282    | 101496       | 48034                 | 116861    | 119157       | 59217                 |
| 7       | CHANDIGARH UT             | 1485      | 1161         | 211                   | 1733      | 1229         | 228                   |
| 8       | LADAKH                    | -         | 947          | 621                   | 385       | 341          | 281                   |
|         | Northern RegionTotal      | 302268    | 269899       | 124986                | 323123    | 303191       | 150452                |
| 9       | ARUNACHAL PRADESH         | 540       | 86           | 36                    | 594       | 138          | 83                    |
| 10      | ASSAM                     | 11420     | 11457        | 8551                  | 11673     | 9313         | 6489                  |
| 11      | MANIPUR                   | 742       | 301          | 204                   | 805       | 398          | 287                   |
| 12      | MEGHALAYA                 | 695       | 251          | 201                   | 705       | 273          | 164                   |
| 13      | MIZORAM                   | 761       | 330          | 293                   | 766       | 301          | 232                   |
| 14      | NAGALAND                  | 421       | 239          | 187                   | 455       | 281          | 210                   |
| 15      | SIKKIM                    | 285       | 187          | 69                    | 316       | 220          | 103                   |
| 16      | TRIPURA                   | 4367      | 3651         | 3176                  | 4939      | 3159         | 2652                  |
|         | North Eastern RegionTotal | 19231     | 16502        | 12717                 | 20252     | 14085        | 10220                 |
| 17      | A and N ISLAND            | 400       | 206          | 108                   | 406       | 310          | 152                   |
| 18      | BIHAR                     | 63317     | 46981        | 34893                 | 66500     | 87089        | 45742                 |
| 19      | JHARKHAND                 | 10399     | 7016         | 5279                  | 11421     | 9800         | 7809                  |
| 20      | ODISHA                    | 39999     | 34147        | 25763                 | 44000     | 41978        | 31140                 |
| 21      | WEST BENGAL               | 84858     | 62657        | 42952                 | 93329     | 62549        | 39156                 |
|         | Eastern RegionTotal       | 198973    | 151007       | 108994                | 215657    | 201727       | 124000                |
| 22      | CHHATTISGARH              | 20001     | 18728        | 8091                  | 21933     | 19324        | 6473                  |
| 23      | MADHYA PRADESH            | 91449     | 80110        | 33068                 | 95062     | 88292        | 37468                 |
| 24      | UTTARAKHAND               | 19999     | 9648         | 4069                  | 22489     | 9383         | 4704                  |
| 25      | UTTAR PRADESH             | 140001    | 114623       | 76725                 | 153143    | 122169       | 78025                 |
|         | Central RegionTotal       | 271450    | 223109       | 121954                | 292627    | 239168       | 126670                |
| 26      | GOA                       | 1800      | 1374         | 521                   | 2070      | 1474         | 811                   |
| 27      | GUJARAT                   | 80001     | 84934        | 33483                 | 91709     | 103118       | 37251                 |
| 28      | MAHARASHTRA               | 114321    | 98140        | 45957                 | 129483    | 122193       | 53269                 |
| 29      | D and N HAVELI UT         | 220       | 555          | 15                    | 257       | 170          | 26                    |

| 30   | DAMAN and DIU UT     |      81 |     147 |     36 |      94 |      63 |      27 |
|------|----------------------|---------|---------|--------|---------|---------|---------|
|      | Western RegionTotal  |  196423 |  185151 |  80013 |  223613 |  227017 |   91383 |
| 31   | ANDHRA PRADESH       |  101829 |  174974 | 102514 |  115835 |  206160 |  130118 |
| 32   | TELANGANA            |   74536 |   71665 |  42007 |   85101 |   88583 |   48467 |
| 33   | KARNATAKA            |   91309 |  111844 |  59496 |  101528 |  139403 |   77483 |
| 34   | KERALA               |  101736 |  102109 |  60680 |  111827 |  114158 |   73529 |
| 35   | PUDUCHERRY           |    5002 |    4835 |   2502 |    5459 |    4385 |    2580 |
| 36   | TAMILNADU            |  136944 |  264169 | 153819 |  154621 |  325472 |  225064 |
| 37   | LAKSHADWEEP UT       |     299 |     133 |     55 |     356 |      14 |       9 |
|      | Southern RegionTotal |  511655 |  729731 | 421073 |  574728 |  878175 |  557252 |
|      | Grand Total:         | 1500000 | 1575398 | 869737 | 1650000 | 1863363 | 1059976 |

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