Farm credit target may go up 20% to Rs 4,50,000 cr

[katharnak]

EW DELHI: The farm credit target is expected to witness a rise of 20% to Rs 4,50,000 crore in this year's budget from the present year's Rs 3,75,000 crore. Since, the agriculture sector is going up at 5.4% in the current fiscal, the centre may ask banks to distribute more to the segment to maintain the momentum.

The government's mid-year review released in December, said, “ The micro-finance sector, which has been an important source of credit to the acriculture sector, however, faces some troubles.”

This new target may consist of direct farm credit of Rs 2,70,000 crore and indirect credit of Rs 1,80,000 crore. According to Indian Banks Association data, credit flow to agriculture in fiscal 2010-11 up to November 30 was at Rs 2,60,463 crore.

According to the new rules, banks are needed to keep aside 18% of their total advances for agriculture.

[The QUEEN]

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