Budget 2024: Agri-credit target may rise to Rs. 22-25L crore
What's the story
The Indian government is planning to raise the agricultural credit target to Rs. 22-25 lakh crore for the upcoming fiscal year, ensuring that every eligible farmer can access institutional credit, reported PTI.
Currently, the agri-credit target stands at Rs. 20 lakh crore, with farmers receiving loans up to Rs. 3 lakh at a concessional rate of 7% per annum.
This move aims to include eligible farmers who have not yet been incorporated into the credit network.
Details
Government focuses on expanding agri-credit access
To achieve this goal, the government has launched several campaigns to identify and include these farmers in the formal credit system.
The agriculture ministry has even established a separate division dedicated to credit.
Over the past decade, credit disbursement for agricultural and related activities has consistently surpassed targets, with approximately 82% of this fiscal year's agri-credit target reached by December 2023.
What Next?
Farm credit disbursal surpasses targets
In the 2022-23 fiscal year, total farm credit disbursement amounted to Rs. 21.55 lakh crore, exceeding the Rs. 18.50 lakh crore target set for that period.
As of March 31, 2023, around 7.34 crore farmers had accessed credit through the Kisan Credit Card (KCC) network, with an outstanding amount of Rs. 8.85 lakh crore.
According to the 2019 NSS report, 50.2% of agricultural households in India are in debt, with 69.6% of outstanding loans coming from institutional sources.
Insights
Government initiatives aim for 100% KCC saturation
To ensure all eligible farmers can access institutional credit, the government is aiming for 100% saturation in KCC through initiatives like the 'Ghar Ghar KCC' campaign, 'Viksit Bharat Sankalp Yatra,' and 'PM-JANMAN' campaign focusing on Particularly Vulnerable Tribal Groups (PVTGs).
These efforts seek to issue KCCs to overlooked farmers, fishermen, and tribal farmers, further expanding India's formal credit network for agricultural households.