New Delhi: The Government has disbursed about Rs 1.36 lakh crore of agriculture credit to farmers in the first quarter of the current financial year.

“The target of credit flow for the year 2012-13 has been fixed at Rs 5.75 lakh crore and achievement as on June 30, 2012 is Rs 1,35,956.49 crore,” according to the background note prepared for the Economic Editors conference.

The target of credit flow for the year 2011-12 has been fixed at Rs 4.75 lakh crore and achievement as on March 31, 2012 is Rs 5,11,029.09 crore, forming more than 108 percent of the target, the note added.

From kharif 2006-07, farmers are receiving crop loans up to a principal amount of Rs 3 lakh at 7 percent of interest.

In 2009-10 fiscal, the Government provided an additional one percent interest subvention to those farmers who repaid their short-term crop loans as per schedule.

The Government raised this subvention to two percent from 2010-11 and to three percent from 2011-12, it added.

Agriculture credit plays an important role in improving farm production, productivity and mitigating the distress of farmers, it said.

Agriculture and allied sectors, as per the revised estimates released by the Central Statistics Office (CSO), is expected to grow at 2.8 percent during 2011-12 fiscal, the note said.

This averages to a growth rate of 3.3 percent during the 11th Five Year Plan (2007-12), which is higher than that achieved during the 9th Five Year Plan (2.5 percent) and 10th Five Year Plan (2.4 percent) at 2004-05 prices, it added.

The Gross Capital Formation (GCF) in agriculture as a proportion to the total GCF showed a decline from 10.5 percent in 1999-2000 to 7.2 percent in 2010-11 at 2004-05 prices, it said.

The GCF in agriculture relative to GDP in this sector improved from 13.1 percent in 1999-2000 to 20.1 percent in 2010-11 at 2004-05 prices, it added.

The average share of GCF to GDP in agriculture and allied sector in the first four years of the 11th Five Year plan was 18.8 percent at 2004-05 prices, it said.

(Agencies)

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