Agri credit disbursement doubles to Rs 94,278cr in 2005-06

New Delhi, Jan 2 (UNI) The disbursement of agri credit by 27 commercial banks rose to Rs 94,277.79 crore in 2005-06, more than double the figure of Rs 42,210.77 crore in 2003-04.

The increase in agri credit led to the betterment of farmers' overall conditions in the country, according to findings of the industry chamber Assocham.

The chamber expects that the current momentum of agri credit disbursement by scheduled commercial banks will have multiplier effect and it might go over Rs 1,20,000 crore by the end of the current fiscal.

The industry body has therefore suggested to the Finance Minister P Chidambaram to come out with incentives and grants for creating agricultural research institutes all over the country to impart farmers the necessary training to take advantage of increased disbursement of agri credit to increase their farm yield which has currently gone down significantly.

Speaking on the findings, Assocham President Anil K Agarwal said on account of excessive use of fertiliser in the last four to five decades, the agricultural yield all over the country has shrunk and now the farmers need research institutes that can disseminate information to farmers as to how the lost yield can be compensated with modern technologies which the suggested institutes can provide.

The chamber's findings condensed in its analysis on 'Increased Disbursement of Agri Credit by Nationalised Banks' in the recent years says that the major states that accrued the benefits of enhanced agri credit take off from 2003-04 to 2005-06 include states like Maharashtra, Karnataka, Andhra Pradesh, Punjab, Kerala, Gujarat, Orissa, Uttar Pradesh, West Bengal among others.

In case of Maharasthra, the increased in agri credit by commercial banks was from Rs 2,851.73 crore in 2003-04, which shot up to Rs 4,040.8 crore in the following year before touching a level of Rs 5,885.04 crore by end of 2005-06.

As regards to Gujarat, the 27 commercial banks extended Rs 2,299.76 crore of money by way of agri credit which shot up to Rs 4,645.68 crore in 2005-06. It was Rs 3,625.38 crore in 2004-05.

In case of Andhra Pradesh and Karnataka, the amount for rural credit was respectively Rs 5,809.4 crore and Rs 3,296.7 crore for 2003-04 which went up to Rs 8,726.5 crore and Rs 4,829.77 crore in 2004-05 before reaching a level of Rs 10,937.88 crore and Rs 7,252 crore in 2005-06.

For Punjab and Kerala, the agri credit earmarked by commercial banks stood at Rs 5,050.89 crore and Rs 1,803.13 crore for 2003-04 respectively and shot up to Rs 7,695.93 crore and Rs 2,703.4 crore in 2004-05. The figures rose to Rs 7,957.76 crore and Rs 4,140.58 crore in 2005-06.

In large states like Uttar Pradesh, Madhya Pradesh, Bihar and West Bengal, the agri credit witnessed substantial hike. In Uttar Pradesh, it rose to Rs 7,895.8 crore in 2005-06 from Rs 3,568.45 crore in 2003-04. It was Rs 5,674.29 crore in 2004-05.

Agri credit in Bihar went up to Rs 1,430.38 crore in 2005-06 from a level of Rs 655.74 crore in 2003-04. Whereas, Madhya Pradesh was extended Rs 1,510.66 crore of agri credit in 2003-04 which shot up to Rs 3,304.89 crore in 2005-06.

Orissa and West Bengal extended respectively Rs 385.79 crore and Rs 1,570.17 crore in 2003-04, which went up to Rs 970 crore and Rs 3,034.55 crore in 2005-06.

UNI