Finance minister Pranab Mukherjee, while presenting the Budget 2009-10 in Lok Sabha on Monday stated that the target for the agriculture credit flow for the year 2009-10 is being set at Rs 3,25,000 crore (Rs 3,250 billion).
Agricuture credit flow for the year 2008-09 was Rs 2,87,000 crore (Rs 2,870 billion).
To achieve this, the mukherjee proposed to continue the interest subvention scheme for short term crop loans to farmers for loans up to Rs 300,000 per farmer at the interest rate of 7 per cent per annum.He also announced an additional subvention of 1 per cent as an incentive to those farmers who pay their short term crop loans on schedule.
The interest rate for these farmers could come down to 6 per cent per annum. An additional Budget provision of Rs. 411 crore (Rs 4.11 billion) over Interim Budget has been earmarked for the purpose. -- PIB