Farm credit exceeds Rs 6 lakh cr in FY'13

Farm credit is estimated to be over Rs 6 lakh crore in the 2012-13 fiscal, higher than the target, due to increased demand amid drought in some states such as Maharashtra and Karnataka.

In 2011-12, banks had disbursed Rs 4.76 lakh crore credit to farmers against the target of Rs 4.75 lakh crore.

"Banks have already achieved the farm loan target of Rs 5.75 lakh crore and have disbursed over Rs 6 lakh crore in the last fiscal," a senior Agriculture Ministry official told PTI.

The credit demand rose in view of drought situation in some states. However, North East and Eastern states are lagging behind in availing farm credit, the official said.

Banks provide farm loans at 7% interest. However, farmers making timely payments are provided loans at 4% interest rate.

The official further said that the target set for this fiscal will be easily achieved. The coverage will be enhanced especially to small and marginal farmers by ensuring kisan credit cards made available to them.

For the 2013-14 fiscal, the government has increased the farm credit target to Rs 7,00,000 crore from Rs 5,75,000 crore last year. The interest-subvention for short-term crop loan has been continued for this fiscal.

The Met Department has forecast normal monsoon this year and the government expects better performance of by the agriculture sector.