Loans to farmers: Rs 86\,000 crore doesn\'t meet Budget promise of Rs 1.12 lakh crore per month

Loans to farmers: Rs 86,000 crore doesn't meet Budget promise of Rs 1.12 lakh crore per month

Highlighting the steps already taken by the government amid coronavirus ciris, Sitharaman said that the government has already sanctioned a total of Rs 86,000 crore for farmers between March 1 and April 30

Government had made an allocation of Rs 15 lakh crore for FY21 budget

While announcing relief measures for farmers, Finance Minister Nirmala Sitharaman on Thursday said that the government has sanctioned 63 lakh loans for farmers between March and April 2020. Highlighting the steps already taken by the government amid coronavirus ciris, Sitharaman said that the government has already sanctioned a total of Rs 86,000 crore for farmers between March 1 and April 30. The amount may appear significant, but the government runs behind the target as of now.

The government made an allocation of Rs 15 lakh crore for FY21 in budget towards farm credit, up 11 per cent from Rs 13.5 lakh crore in the previous fiscal. The target was Rs 1.2 lakh crore loans each month. In March-April, it amounts to Rs 2.4 lakh crore. However, the government has given only 86,600 crore.The central government's loan disbursal to the agriculture sector is currently at a run rate of one-third of target for the fiscal - clearly a cause of concern.

"Our government is committed to the goal of doubling farmers' incomes by 2022," Nirmala Sitharaman had said in the budget speech.  She had also said that the prosperity of farmers could be ensured by making farming competitive. The government proposes raising the target for disbursing agriculture credit to Rs 15 lakh crore for FY21 to provide better access to bank credit, she said.

"Credit limit has been expanded. I am sure it is based on local ground level requirements...we expect the demand to grow and credit requirements to also meet up with it. I am actually closely monitoring banks and their extension of credit facilities particularly to rural areas. So I think we'll be able to meet that," she had said after addressing the central board of RBI a few days after the budget.

Meanwhile, the government announced Rs 2 lakh crore of concessional credit boost to 2.5 crore farmers through Kisan Credit Cards. Fishermen and animal husbandry farmers will be included in the Kisan Credit Card scheme, Sitharaman said. The finance minister also unveiled Rs 30,000 crore additional emergency fund through NABARD for farmers.