There is a possibility of increasing the target of loans given to farmers in the agriculture oriented budget

- Bhoo Bazar - Dilip Shah

- It is hoped that the target of agri credit will increase by five lakh crores: A separate department has been started in the Ministry of Agriculture on this issue

The eyes of the business and industry world of the country have been on the budget presented by the finance minister of the central government. Considering that the Lok Sabha elections are to come shortly after the budget, the informants were showing the possibility that the importance of the various proposals and allocations presented in the budget would increase this time. Agriculture sector players and analysts in agriculture markets have been keeping an eye on the budget. As the government is trying to reduce and control the fiscal deficit, it will be interesting to see how much tax concessions are given. Meanwhile, according to agriculture sector insiders, the finance minister is likely to increase the Agri-Credit agricultural credit target. According to an estimate, the target of such agricultural credit is likely to be increased by the government to around 22 to 23 lakh crore rupees. A certain section of the agricultural sector has also shown hope that the government will probably make 24 to 25 lakh crore rupees by increasing such a target. At present, the government is providing interest subsidy of two percent in short-term agricultural loans to all financial institutions for agricultural loans up to three lakh rupees. As a result of this, the farmers of the country are getting such agricultural loans at the rate of seven percent annually on agricultural loans up to three lakh rupees, according to agricultural experts. Meanwhile, according to sources in the Ministry of Finance in Delhi, the government had set a target of Rs.20 lakh crore for agricultural credit in the financial year 2023-24 and now it is likely that the target will be increased to Rs.25 lakh crore for the financial year 2024-25. The informants are showing. Recently, the government decided that farmers who repay their loans on time will be given an additional three percent annual interest subsidy. However, for long-term agricultural loans, farmers have to pay interest based on the market rate.

The government is making efforts to ensure that maximum number of farmers can take advantage of the relief schemes of agricultural loans and as a result of this, analysts are showing calculations that it will not be surprising if the finance minister increases the target of such agri credit in the budget this time to Rs.25 lakh crore. According to sources in the Union Ministry of Agriculture, a separate credit division has been started in the Ministry of Agriculture. With the formation of such a department, the sources in Delhi were showing calculations that now the finance minister and the agriculture minister will be able to focus on agriculture credit. Meanwhile, government sources are claiming that credit disbursements for various agricultural and agro-related activities have been exceeding the target in the last ten years. In the current financial year of 2023-24, out of the target of Rs.20 lakh crore of Agri-Credit, about 81 to 82 percent of the target has been achieved by the end of December 2023 and during this period, the government has allocated Rs.16 lakh 35 to 40 thousand crore rupees to private and public banks for this purpose. have been distributed by In view of this, the government sources were showing the possibility that even in the current financial year 2023-24, such credit disbursement would exceed the set target. In the financial year 2022-23, the government had set a target of Rs.18 lakh 50 thousand crores for agro-credit and against this the total disbursement of such agricultural credit increased to Rs.21 lakh 55 thousand crores. Meanwhile, around seven and a half crore farmers were recently reported to have been provided agricultural credit through Kisan Credit Cards. The government is showing a plan to make agricultural credit facility available to most of the farmers in the country and to ensure that maximum number of farmers get the benefit of such agricultural credit. The success of such efforts of the government now depends on the budget, said agriculture sector informants.