Farm credit by co-op sector fixed at Rs 2,500 crore

The Orissa government has set a target to provide Rs 2,500 crore crop loan through the cooperative sector during this fiscal, which is Rs 1,000 crore more than the amount disbursed in 2008-09. The target includes Rs 1,500 crore for Kharif and Rs 1000 crore for Rabi.

In Kharif 2008, the government had provided Rs 546 crore crop loan through the cooperative sector as against the target of Rs 1200 crore. In Rabi 2008-09, the achievement, however, exceeded the target. As against a target of Rs 800 crore, the government had provided Rs 943 crore loans during the last Rabi season.

The disbursement of crop loan in 2008 Kharif, which was at its all time low, was affected due to the debt waiver scheme of the Central government, said a senior officer in cooperative department. Things, however, looked up in the Rabi season, he added.

The crop loan is being provided to the farmers mainly through the primary Agriculture Cooperative Societies (PACS), functioning under the District Central Cooperative Banks (DCCB). The Short Term Cooperative Credit Structure accounts for 65 to 70 percent of the total crop loan disbursed in the state. Although the share of agriculture credit by the cooperatives has declined to 27 percent at the national level, the cooperative banks in Orissa continue to finance the larger part of the short term crop loans.

Out of Rs 1500 crore target for the Kharif 2009 through the cooperative sector, the DCCBs have achieved only 4 percent by May 15. The total crop loan disbursed up to that date was Rs 63.28 crore, which includes Rs 50.55 crore in cash and Rs 12.72 crore in kind. The achievement in the corresponding period of the last year was Rs 26.77 crore, the sources said. The Kahrif season started from April 1 and would continue till October 31. Out of total 17 DCCBs in the state, the target achievement of Balasore DCCB was highest at 9 percent and it is followed by Cuttack DCCB (7 percent), Berhampur and Nayagarh DCCBs (6 percent each) and Angul DCCB (5 percent).