Explore Business Standard
Don’t miss the latest developments in business and finance.
The Finance Ministry on Friday said the Ground Level Agriculture Credit (GLC) has crossed Rs 19 lakh crore in nine months of the current fiscal as against the target of Rs 27.50 lakh crore for the entire FY25. Against the target of Rs 27.50 lakh crore, agriculture credit to the tune of Rs 19.28 lakh crore has been disbursed as of December 31, 2024, registering 70 per cent achievement, the finance ministry said in a statement. In order to boost the credit to the rural sector with the help of effective and hassle-free agriculture credit, the government has been fixing annual targets for GLC. Over the past decade (2014-15 to 2023-24), agricultural credit disbursement has witnessed an average annual growth rate of more than 13 per cent, reflecting the increasing financial support extended to the sector. In the financial year 2023-24, agricultural credit disbursement reached Rs 25.48 lakh crore. For 2024-25 the Government of India has set GLC target of Rs 27.5 lakh crore with a dedicat
The government is trying to bring policy-level changes for simplifying agriculture, Union Minister Shivraj Singh Chouhan on Monday said and indicated that providing subsidies on fertiliser, seed and farming equipment through direct benefit transfer could be considered in the future. In an interaction with farmers, who were invited to witness the Republic Day parade as special guests, at his residence here on Monday, the Agriculture and Rural Development Minister said the government spends up to Rs 2,00,000 crore on fertiliser subsidies. "The fertiliser subsidy that the government gives costs to the tune of Rs 2,00,000 crore. A sack of urea costs Rs 265 to the farmers, but it costs Rs 2,400. The subsidy goes to the company. The fertilizer is also used for other purposes... If there is a reliable system, farmers can be given the subsidy directly in their accounts," Chouhan said. "The PM Kisan Samman Nidhi's cost comes to around Rs 60,000 crore, if the fertilizer subsidy is given throu
Warehousing and collateral management firm Sohan Lal Commodity Management (SLCM) announced a strategic partnership with the state-owned Bank of Baroda on Wednesday to provide collateral management services for agricultural financing. The partnership will enable farmers to access credit against their crops through Bank of Baroda's nationwide network, the company said in a statement. SLCM reported its assets under management (AUM) rose 73 per cent to Rs 11,952 crore in the first half of fiscal 2024-25, compared to Rs Rs 6,911 crore in the year-ago period. SLCM Group CEO Sandeep Sabharwal said the company's Agri Reach technology and physical infrastructure will help minimise the default risk and improve financial access for the agricultural ecosystem. The company operates over 17,000 warehouses and 36 cold storage facilities across 19 Indian states, managing more than 1,080 commodities including cotton, pulses, and maize. SLCM currently maintains partnerships with more than 20 ...
The Modi government has enhanced the institutional credit into the agriculture sector sharply in the last 10 years, with banks disbursing Rs 20.39 lakh crores during the April-January period of this fiscal as against Rs 7.3 lakh crore in the entire 2013-14, according to a senior official. In the Budget for 2023-24 fiscal, the government set an agriculture credit target at Rs 20 lakh crore. Banks have already breached the target and the number could cross Rs 22 lakh crore this fiscal. To ensure the availability of agriculture credit at a reduced interest rate of 7 per cent per annum to the farmers, the Union Agriculture Ministry implements an interest subvention scheme for short-term crop loans up to Rs 3 lakh. The scheme provides interest subvention of 2 per cent per annum to banks on the use of their resources. Moreover, an additional 3 per cent incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4 per ...
Cooperation Minister Amit Shah on Wednesday said 31 states and Union Territories have adopted the model bylaws that aim to bring professionalism, transparency and accountability in the operation of Primary Agricultural Credit Societies (PACS). After incorporating the suggestions received, the model bylaws were circulated to all states/ UTs on January 5, 2023 for their adoption by PACS, he said. "Model bylaws have been adopted by 31 states/UTs," Shah said in a written reply to the Rajya Sabha. By adopting the model bylaws, PACS would be able to serve as multi-service centres, improve their operational efficiency, transparency and accountability and provide agricultural credit and various non-credit services in rural areas, he said. Further, this will help farmers in getting short-term, medium-term and long-term credit and other services such as fertilizers, seeds, pesticides, storage facilities, banking services, at one stop for meeting their varied needs. Farmers will also be able
In a major step to strengthen cooperatives, the government on Wednesday said the Primary Agricultural Credit Societies (PACS) having wholesale petrol and diesel dealership licence will be given a one-time option to covert their bulk consumer pumps into retail outlets. PACS will be given priority in allotment of new petrol/diesel dealerships to strengthen the cooperative movement in the country. PACS will also be able to get LPG distributorship. These decision were taken in a meeting held by Cooperation Minister Amit Shah with Petroleum and Natural Gas Minister Hardeep Singh Puri here, an official statement said. Among other decisions, sugar cooperative mills will be given priority to sell ethanol under the ethanol blending programme, and even PACS will be allowed to operate retail outlets on their own. "The petroleum ministry will also change the rules to make PACS eligible for LPG distributorship and PACS will be placed under Combined Category 2 (CC 2) category with freedom fighte
Prime Minister Narendra Modi on Monday released the 13th instalment of over Rs 16,000 crore, under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), through direct benefit transfer to more than eight crore beneficiaries. Under the scheme, eligible farmer families are provided Rs 6,000 per year in three equal instalments of Rs 2,000 each. During the programme, Modi also dedicated the redeveloped Belagavi Railway Station building, to the nation. The railway station has been redeveloped at an approximate cost of about Rs 190 crore to provide world-class amenities to the passengers. Another railway project that was dedicated to the nation by the Prime Minister is the rail line doubling project between Londa-Belagavi-Ghataprabha section at Belagavi. This project, developed at a cost of about Rs 930 crore, will enhance line capacity along the busy Mumbai Pune Hubballi Bengaluru railway line, leading to promotion of trade, commerce and economic activities in the region, according to a
With the aim of doubling farmers' income by 2022, the government is likely to raise farm credit target to about Rs 19 lakh crore in Budget 2021-22 to be presented on February 1, according to sources. For the current fiscal, the government has set a farm credit target of Rs 15 lakh crore. The government has been increasing the credit target for the farm sector every year and this time too, the target is likely to be increased to around Rs 19 lakh crore for the 2021-22, sources said. "Non-banking finance companies (NBFCs) and co-operatives are active in the agriculture credit space. The Nabard refinance scheme will be further expanded. Agriculture credit target for the year 2020-21 has been set up at Rs 15 lakh crore," Finance Minister Nirmala Sitharaman had said while announcing the Budget 2020-21. The agricultural credit flow has increased consistently over the years, exceeding the target set for each fiscal. For instance, credit worth Rs 11.68 lakh crore was given to farmers in ..