FM sets Rs 3.25k cr for agriculture credit flow
New Delhi, Jul 6: Finance Minister Pranab Mukherjee on Monday, Jul 7 said that the target for the agriculture credit flow for the year 2009-10 is being set at Rs. 3,25,000 crore.
Presenting the budget for 2009-10, Mukherjee said, "Agricuture credit flow for the year 2008-09 was Rs. 2,87,000 crore."
To achieve this, he proposed to continue the interest subvention scheme for short-term crop loans to farmers for loans up to Rs. 3 lakh per farmer at the interest rate of seven per cent per annum.
The Minister also announced an additional subvention of one per cent as an incentive to those farmers who pay their short-term crop loans on schedule.
"The interest rate for these farmers could come down to six per cent per annum. An additional budget provision of Rs. 411 crore over interim budget has been earmarked for the purpose," he added.
He also announced the extension in the time given to the farmers having more than two hectares of land to pay 75 per cent of their overdues under Debt Waiver and Debt Relief Scheme extended from Jun 30 to Dec 31.
"This extension of six months has been given in the wake of delay in the arrival of monsoon," he added.