Agri-clinics project fails to take off in Kerala

The Agro-clinics project launched about four years ago by the Centre to aid farming activities in the country has failed to take off in the state as the banks which are to finance the scheme have virtually found no takers for the scheme.

Except a handful of applicants in the districts of Palakkad and Alappuzha, the banks in the rest of Kerala have seen no application in this connection coming in at all.

The bank officials Business Standard spoke to are of the opinion that Agro-clinics stand no chance of being a success in Kerala as farmers in the state are more or less happy with the functioning of Krishi Bhavans that operate under the department of agriculture.

"Farmers are satisfied with the advice provided by the Krishi Bhavans. Each panchayat in the state has a Krishi Bhavan manned by an agriculture officer and three other officials. And, on the financing front, the farm subsidies extended by the department are seen as satisfactory by the agriculturists."

When the government of India had announced the concept of agri-clinics, the banks were directed to extend loans up to Rs 5 lakh to interested parties.

The concept was aimed at providing testing facilities and all kinds of agro-consultancy services to farmers. The scheme could be seen as one meant for states where seasonal crops are cultivated widely. Kerala does not fall in this category as seasonal crops are a rarity here, according to bankers.

Though district-level task forces were constituted following the government directive, the progress in implementation of the scheme for financing of agri-clinics and agri-business centres has not been encouraging, according to a document brought out by the State Level Bankers Committee here.

Moreover, statistics in this regard have revealed that only 22 agri-clinics and a paltry three agri-business centres were sanctioned by banks in Kerala against the target of 140.

A break-up of the banks that have extended financing to agri-clinics and agri-business centres throws up a dismal picture. While the State Bank group, including the State Bank of India and State Bank of Travancore, sanctioned Rs 100.66 lakh since inception to agri-clinics, and none at all to agri-business centres, other nationalised banks (Canara Bank, Syndicate Bank and Union Bank) provided Rs 20.10 lakh for agri-clinics and Rs 7.80 lakh for agri-business centres.

The North Malabar Gramin Bank, an RRB, sanctioned Rs 14.50 lakh to agri-clinics and nothing at all to agri-business centres, while the private sector banks in the state (Federal Bank, Catholic Syrian Bank and Dhanalakshmi Bank) did not even find any application come their way since the inception of the scheme.

A senior bank official of one of the commercial banks here said that the banking community in the state, in fact, believes that it is really tough for such a scheme to succeed as the situation is different in Kerala as compared to other agrarian states.

Besides, there are virtually no takers for the scheme. Banks here have suggested to the Centre through Nabard that the scheme be modified to make retired agricultural professionals and such individuals beneficiaries of the scheme. This is because, no private party is expected to come forward and apply for loans under this scheme when Krishi Bhavans are giving the farmers what they look for.