Over 200% growth in farm credit: Assocham

Credit disbursements by scheduled commercial banks to agriculture sector have increased 200% between 1998 and 2005, according to industry body Assocham.

Andhra Pradesh has emerged as the dominant state in agriculture finance with disbursements at Rs 81,857crore in 2004-05 from Rs 26,557 crore in 1998-99, an Assocham Eco Pulse Study indicated.

Gujarat followed Andhra Pradesh in the farm credit growth with total credit disbursements going up to Rs 60.03 bn, thereby registering a substantial rise of 32% in 2004-05.

The emphasis on agricultural credit has continued to be on progressive institutionalisation for providing timely and adequate support to farmers with particular focus on small and marginal farmers, A K Khandelwal, president of Assocham, said.