Press Information Bureau

Government of India

Ministry of Finance

29-November-2012 18:01 IST

The details of the number of farm accounts and amount disbursed to small and marginal farmers during last three years and in current year (i.e., 2012-13) up to September 2012 are as under: 

Out of 646.57 lakh farmers financed during 2011-12, 404.82 lakh farmers were in the small and marginal farmers category, constituting 63% of the total number of farmers financed, who received credit amounting to Rs. 2,21,329 crore, forming 43% of the total credit disbursements at Rs. 5,11,029 crore.

NABARD does not maintain details of subsidized farm loans disbursed to Small Farmers (SF)/Marginal Farmers (MF) and big farmers.

The Government of India has taken several measures for the availability of credit to farmers in general and small and marginal farmers in particular. These include:

i)  The Interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short-term crop loans up to Rs. 3 lakh for a period of one year available to farmers at the interest rate of 7 per cent per annum. The Government of India has since 2009-10 been providing additional interest subvention to prompt payees farmers i.e., those who repay their loans in time. The additional subvention was 1% in 2009-10, 2% in 2010-11 and 3% in 2011-12. Further, in order to discourage distress sales, the benefit of interest subvention was made available in the year 2011-12 to small and marginal farmers having Kisan Credit Card for a further period of up to six months post harvest on the same rates as available to crop loans against negotiable warehouse receipts for keeping their produce in warehouses. The Interest Subvention Scheme for the year 2011-12 has been continued in 2012-13 as well.

ii)  The Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 has de-clogged the line of credit that were clogged due to the debt burden on the farmers. Under the Scheme 3.45 crore farmers have been benefitted to the extent of Rs. 52,275.55 crore.

iii) Banks have been advised to dispense with the requirement of “no dues” certificates for small loans upto Rs. 50,000 to small and marginal farmers, share-croppers and the like and instead obtain a self-declaration from the borrower.

iv) RBI has advised banks to waive margin/security requirements for agricultural loans up to Rs.1,00,000.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

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DSM/RS/ka

Interest subvention scheme extended to short-term crop loans, adding prompt-payee incentives and post-harvest coverage for small farmers. The Government continued the Interest Subvention Scheme for short-term crop loans to improve affordability for farmers, providing additional incentive subvention for prompt payees and extending subvention for small and marginal farmers with Kisan Credit Cards for up to six months post-harvest on the same terms as loans against negotiable warehouse receipts. Complementary measures include the Agricultural Debt Waiver and Debt Relief Scheme, bank instructions allowing self-declaration in place of 'no dues' certificates for small loans, and RBI guidance to waive margin/security for small agricultural loans.