Lok Sabha Question No. 124 (STARRED), answered on 2023-12-12
Subject: Institutional Credit and Agricultural Loans
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shrikant Eknath Shinde, Sujay Radhakrishna Vikhepatil

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

## LOK SABHA STARRED QUESTION No. 124

TO BE ANSWERED ON 12 TH  DECEMBER, 2023

## INSTITUTIONAL CREDIT AND AGRICULTURAL LOANS

*124.  DR. SHRIKANT EKNATH SHINDE: DR. SUJAY RADHAKRISHNA VIKHE PATIL: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to State:

(a) the  details  of  the  methods  through  which  the  Government  has  enhanced  access  to institutional credit in agriculture;

(b) the details of the institutional credit disbursed to farmers in the previous year along with the number of Kisan Credit Card (KCC) applications approved and the corresponding credit amount sanctioned;

(c) the manner in which the Government has addressed the issue of increasing farmers' income in the country;

(d) whether the implementation of these initiatives has resulted in a decrease in rural-tourban migration  driven  by  the  pursuit  of  non-farm  employment  opportunities  and  if  so,  the details thereof;

(e) the details of the Government's future plans and strategies to enhance farmers' access to agricultural loans; and

(f) the details of income support provided to farmers through the PM KISAN scheme in the previous year?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी (SHRI ARJUN MUNDA)

(a) to (f): A statement is laid on the Table of the House.

## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 124 DUE FOR REPLY ON 12 th  DECEMBER, 2023.

(a): Agriculture being a State subject, the State Government takes appropriate measures for development of institutional credit in agriculture. Here, the Union Government supplements the  efforts  of  the  States  through  appropriate  policy  measures,  budgetary  support  and implementation of various schemes and programmes. The Union Government has taken the several steps  to  enhance  access to institutional  credit  in  agriculture  by  announcing  annual target  for  agriculture  credit  in  the  budget  every  year.  The  Ground  Level  Credit  (GLC)/ Agricultural credit flow has shown consistent progress year on year and GLC has risen from 7.30 lakh crore in 2013-14 to 20.00 lakh crore in 2023-24.

The Kisan Credit Card (KCC) provides timely credit to farmers to meet short-term/longterm cultivation requirement, postharvest expenses, consumption requirement etc. and draw cash to satisfy their consumption needs. The Kisan Credit Card has been further simplified and converted into Automated Teller Machine (ATM) enabled debit card, with, inter alia, facilities of one-time documentation, built-in cost escalation in the limit, any number of drawls within the limit,  etc.  From  the  year  2018-19,  GoI  introduced  KCC  scheme  for Animal  Husbandry  and Fisheries to provide short-term working capital loans to Animal Husbandry and Fish farmers. There are approximately 7.34 Crores operative KCC holders with outstanding amount of 8.85 Lakh Crores as on 31.3.2023.

Modified  Interest  Subvention  Scheme  (MISS),  a  Central  Sector  Scheme,  was  also introduced with a view to provide short-term Agri-loans availed by farmers through KCC for their working capital requirements at concessional rate of interest. Under this scheme, farmers are given KCC loan at subvented interest rate of 7%. For this, at present, interest subvention @1.5% is being given to financial institutions. Therefore, short-term loans for Agriculture and other allied activities up to Rs. 3.00 lakh is available to farmers at an interest rate of 7% per annum. An 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 (other than crop husbandry), the loan amount up to Rs. 2.00 lakh is available at the rate of 7%. An additional 3% PRI is also available on it. In order to discourage distress sale by farmers and encourage them to store their produce in warehouses, the benefit of interest subvention of 3% available to small and marginal farmers having Kisan Credit Card for a period of up to six months, post-harvest of the crop. For the FY 2023-24, the budget allocation is 23,000 crores.

(b): The bank category wise details of the institutional credit disbursed to farmers for crop loans and term loans from 1 April 22 to 31st March 23 includes 16.76 lakh crores to commercial banks, 2.36 lakh crores to cooperative banks and 2.42 lakh crores to Regional Rural Banks (RRBs). Hence, the total disbursement to agencies during the given period is Rs. 21.55 lakh crores. Further, there are approximately 7.34 Crores operative KCC holders with outstanding amount of 8.85 Lakh Crores as on 31.3.2023. The details of number of operative Kisan Credit Card (KCC) is at Annexure-I.

(c) & (d): Government  had  constituted  an  Inter-Ministerial  Committee  in  April,  2016  to examine issues relating to 'Doubling of Farmers Income (DFI)' and recommend strategies to achieve the same. The Committee submitted its final report to the Government in September, 2018 containing the recommendations for doubling of farmers' income through various policies, reforms & programmes. To achieve the objective, the Committee identified following seven sources of income growth: -

- i. Increase in crop productivity
- ii. Increase in livestock productivity
- iii. Resource use efficiency - reduction in cost of production
- iv. Increase in cropping intensity
- v. Diversification to high value agriculture
- vi. Remunerative prices on farmers' produce
- vii. Shift of surplus manpower from farm to non-farm occupations

Government has adopted and implemented several policies, reforms, developmental programmes and schemes for achieving higher incomes for the farmers directly or indirectly. The unprecedented enhanced budgetary provisions have been made to facilitate the following efforts of the Government:-

- i. Income support to farmers through PM KISAN
- ii. Pradhan Mantri Fasal Bima Yojana (PMFBY)
- iii. Institutional credit for agriculture sector
- iv. Fixing of Minimum Support Price (MSP) at one-and-a half times the cost of production
- v. Promotion of organic farming in the country
- vi. Per Drop More Crop
- vii. Micro Irrigation Fund
- viii. Promotion of Farmer Producer Organizations (FPOs)
- ix. National Beekeeping and Honey Mission (NBHM)
- x. Agricultural Mechanization
- xi. Providing Soil Health Cards to farmers
- xii. Setting up of National Agriculture Market (e-NAM) extension Platform
- xiii. Launch of the National Mission for Edible Oils - Oil Palm
- xiv. Agri Infrastructure Fund (AIF)
- xv. Improvement in farm produce logistics, introduction of Kisan Rail.
- xvi. Mission  for  Integrated  Development  of  Horticulture  (MIDH)  -  Cluster  Development Programme:
- xvii. Creation of a Start-up Eco system in agriculture and allied sector
- xviii. Achievement in Export of Agri and Allied Agri- Commodities

Implementation  of  these  schemes  has  yielded  remarkable  results  towards  augmenting  the income of the farmers. As part of the 'Azadi ka Amrit Mahotsav', Indian Council of Agricultural Research (ICAR) has released a book, which contains compilation of success stories of 75,000

farmers out of innumerable successful farmers who have increased their income more than two times.

(e): A KCC Saturation drive i.e., 'Ghar Ghar KCC Abhiyan' has been launched with special focus to saturate PM KISAN beneficiaries. The main objective of this drive is to mobilise the potential farmers through a special drive under Block Level Bankers Committee to saturate PM KISAN  beneficiaries  with  KCC  and  to  enroll  maximum  number  of  farmers/PM  KISAN beneficiaries under all types of KCC schemes (for Crop cultivation, Animal Husbandry, Dairy and Fisheries etc.).

(f): The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme, under the Scheme, an amount of Rs. 6000/- per year is transferred in three installments each of  Rs.2000/- directly into the Aadhaar seeded bank accounts of the farmers through Direct Benefit Transfer (DBT). More than Rs.2.81 lakh crores has been released so far to more than 11crores farmers as on 23.11.23.

State-wise details of the funds released under PM-KISAN in the previous year are attached at Annexure-II .

## Annexure-I

| Operative KCC as on 31.03.2023              | Operative KCC as on 31.03.2023             | Operative KCC as on 31.03.2023             |
|---------------------------------------------|--------------------------------------------|--------------------------------------------|
|                                             | (No. in absolute & Amt in Rs. Crore) Total | (No. in absolute & Amt in Rs. Crore) Total |
| Name of State                               | No. of KCC                                 | Outstanding                                |
| Andaman & Nicobar                           | 9056                                       | 38                                         |
| Andhra Pradesh                              | 45,51,558                                  | 60883                                      |
| Arunachal Pradesh                           | 10100                                      | 81                                         |
| Assam                                       | 6,46,919                                   | 3895                                       |
| Bihar                                       | 25,76,527                                  | 17388                                      |
| Chandigarh                                  | 1475                                       | 99                                         |
| Chhattisgarh                                | 19,17,435                                  | 10757                                      |
| Dadra & Nagar Haveli & Daman & Diu          | 1581                                       | 40                                         |
| Delhi                                       | 2861                                       | 45                                         |
| Goa                                         | 9458                                       | 111                                        |
| Gujarat                                     | 30,18,544                                  | 62391                                      |
| Haryana                                     | 22,86,953                                  | 50045                                      |
| Himachal Pradesh                            | 4,60,441                                   | 7636                                       |
| Jammu & Kashmir                             | 9,10,514                                   | 6363                                       |
| Jharkhand                                   | 9,67,591                                   | 5200                                       |
| Karnataka                                   | 47,21,067                                  | 54181                                      |
| Kerala                                      | 25,94,466                                  | 43401                                      |
| Ladakh                                      | 28072                                      | 258                                        |
| Lakshadweep                                 | 1770                                       | 15                                         |
| Madhya Pradesh                              | 62,68,740                                  | 78136                                      |
| Maharashtra                                 | 71,77,298                                  | 70354                                      |
| Manipur                                     | 19693                                      | 165                                        |
| Meghalaya                                   | 71677                                      | 360                                        |
| Mizoram                                     | 35093                                      | 315                                        |
| Nagaland                                    | 30070                                      | 179                                        |
| Orissa                                      | 39,71,032                                  | 21744                                      |
| Puducherry                                  | 13286                                      | 286                                        |
| Punjab                                      | 21,98,101                                  | 55428                                      |
| Rajasthan                                   | 65,40,646                                  | 99551                                      |
| Sikkim                                      | 8702                                       | 56                                         |
| Tamil Nadu                                  | 35,80,708                                  | 42143                                      |
| Telangana                                   | 43,37,476                                  | 44405                                      |
| Tripura                                     | 1,55,042                                   | 507                                        |
| Uttarakhand                                 | 5,08,644                                   | 6365                                       |
| Uttar Pradesh                               | 1,07,05,196                                | 1,28,123                                   |
| West Bengal                                 | 31,32,363                                  | 14531                                      |
| Total                                       | 7,34,70,155                                | 8,85,475                                   |
| Source: RBI for PSBs and NABARD for RRB and | Cooperatives                               |                                            |

## State-wise details of beneficiaries and amount released under PM-KISAN in the previous year

| Sl. No.           | States                                   | No. of Beneficiaries   | Amount Release (In Rs. Crore)   |
|-------------------|------------------------------------------|------------------------|---------------------------------|
| 1                 | Andaman and Nicobar Islands              | 14,992                 | 8.56                            |
| 2                 | Andhra Pradesh                           | 47,83,549              | 2,959.81                        |
| 3                 | Bihar                                    | 83,54,676              | 4,851.82                        |
| 4                 | Chandigarh                               | 367                    | 0.2                             |
| 5                 | Chhattisgarh                             | 29,47,050              | 1,616.42                        |
| 6                 | Delhi                                    | 14,976                 | 8.44                            |
| 7                 | Goa                                      | 9,118                  | 4.74                            |
| 8                 | Gujarat                                  | 59,62,338              | 3,167.84                        |
| 9                 | Haryana                                  | 18,62,403              | 986.2                           |
| 10                | Himachal Pradesh                         | 9,46,579               | 469.83                          |
| 11                | Jammu and Kashmir                        | 11,07,122              | 528.45                          |
| 12                | Jharkhand                                | 22,61,579              | 1,327.11                        |
| 13                | Karnataka                                | 51,89,062              | 3,414.03                        |
| 14                | Kerala                                   | 34,97,757              | 1,598.63                        |
| 15                | Ladakh                                   | 17,673                 | 10.38                           |
| 16                | LAKSHADWEEP                              | 848                    | 0.66                            |
| 17                | Madhya Pradesh                           | 85,40,733              | 4,876.64                        |
| 18                | Maharashtra                              | 1,04,51,308            | 5,655.85                        |
| 19                | Odisha                                   | 33,89,362              | 1,792.28                        |
| 20                | Puducherry                               | 10,235                 | 5.89                            |
| 21                | Punjab                                   | 17,07,679              | 691.22                          |
| 22                | Rajasthan                                | 72,59,774              | 3,792.36                        |
| 23                | TAMIL NADU                               | 32,29,940              | 1,574.45                        |
| 24                | Telangana                                | 35,81,177              | 2,011.57                        |
| 25                | Dadra and Nagar Haveli and Daman and Diu | 12,958                 | 8.64                            |
| 26                | Uttar Pradesh                            | 2,43,00,100            | 12,450.90                       |
| 27                | Uttarakhand                              | 9,00,559               | 475.42                          |
| 28                | West Bengal                              | 48,69,285              | 2,839.10                        |
|                   | Total (1)                                | 10,52,23,199           | 57,127                          |
| NORTH-EAST STATES | NORTH-EAST STATES                        | NORTH-EAST STATES      | NORTH-EAST STATES               |
| 29                | Arunachal Pradesh                        | 95,095                 | 53.06                           |
| 30                | Assam                                    | 10,28,127              | 560.57                          |
| 31                | Manipur                                  | 3,67,646               | 192.87                          |
| 32                | Meghalaya                                | 56,079                 | 18.57                           |
| 33                | Mizoram                                  | 88,121                 | 45.8                            |
| 34                | Nagaland                                 | 1,97,090               | 103.42                          |
| 35                | Sikkim                                   | 11,702                 | 8.57                            |
| 36                | Tripura                                  | 2,34,743               | 147.59                          |
|                   | Total (2)                                | 20,78,603              | 1,130                           |
| Grand             | Total (1+2)                              | 10,73,01,802           | 58,258                          |

*****