Fix lending target for farm mechanisation: Tractor industry
Press Trust of India / Chandigarh Jul 01, 2009, 16:51 IST
The country's tractor industry, faced with negative growth due to sluggish demand, has asked the government to fix banks' lending target for farm mechanisation and agriculture implements sector and further reduce interest rates for financing tractors.
"In the coming Budget, the Centre should set a specific target especially for the public sector banks in respect of financing to farm mechanisation segment. This step will not only help the tractor industry but will also provide impetus to the farm sector," Mahindra & Mahindra Swaraj Division Deputy Chief Executive Officer A Sawhney said here.
Noting that the tractor industry, over the years has played a crucial role in the development of agriculture across the country, Sawhney said that lack of credit had turned out to be a major hindrance in the growth of this segment.
"We have found that under priority sector lending, banks are not allocating money for the farm mechanisation which is adversely affecting the development of the industry," he asserted.
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