Farm credit exceeds yearly targets

The credit flow to agricultural sector in India has exceeded the target in the third consecutive year and has reached Rs 203,297 crore (Rs 2032.97 billion)  by the end of March, 2007.

The target for agricultural credit for 2006-07 was fixed at Rs 175,000 crore (Rs 1,750 billion). The achievement thus is 16.17 per cent above the annual target.

Starting with agricultural credit at Rs 87,000 crore (Rs 870 billion) in 2003-04, it was targeted to double in three years. As the progress of credit flow increase was satisfactory in 2004-05, the target was raised in subsequent years and the credit flow exceeded the targets in 2005-06 and 2006-07 also.

The target for 2007-08 has been fixed at Rs 2,25,000 crore (Rs 2250 billion).

As per the figures available for March 31, around 44.51 lakh (4.45 million) new farmers have been financed by the public sector commercial banks and 6.26

lakh by private sector commercial banks.

Further, regional rural banks have financed 19.92 lakh (1.99 million) new farmers during the year.

Thus, the total number of new farmers financed by commercial banks and RRBs together formed 70.79 lakh (7.08 million), which exceeds the target of 50.00 lakh (5 million) for the year.

In addition to this, the cooperative banks have financed 12.81 lakh (1.28 million) new farmers during the year taking the total number of new farmers finance by the banking system to 83.50 lakh (8.35 million).

The number of farmers availing of credit using Kisan Credit Cards has increased to 650.09 lakh as on February 28, 2007.

The Kisan Credit Card Scheme was introduced in August 1998 to provide adequate and timely credit support from the banking system in a flexible, hassle free and cost effective manner.