Farm needs to grow at 4%: FM

Finance Minister P Chidambaram today said that if India wants to achieve a 10 per cent gross domestic product (GDP) growth rate, the farming sector should be "pushed" to 4 per cent growth.

"Unless agriculture grows at 4 per cent, whatever we may try, we cannot attain 10 per cent growth," he said at the conclusion of centenary celebrations of the Mangalore-based Corporation Bank.

Every farmer should get credit from commercial banks at a lower rate to achieve 4 per cent growth rate, he said and pointed out that most farmers were dependent on money lenders.

To push agricultural growth, the government had decided to provide agricultural loan to farmers at 7 per cent interest rate through commercial banks, he said.

According to Chidambaram, the National Bank for Agricutural and Rural Development (Nabard) will re-finance a matching amount.

To chalk out a future plan, the ministry has convened a meeting of all chairmen and managing directors of banks and Nabard officials at New Delhi on March 22, he said.

Banks should utilise all available instruments with the government in extending credit to every needy person and various sectors, to ensure that the credit lifeline was not "clotted or blocked", Chidambaram added.