SLBC model means funds for 91,000

According to a report by IBA sub-committee on "Flow of Credit to the Agricultural Sector", the lack of official recognition acted as the main impediment towards credit flow for the share croppers, tenant farmers and agricultural laborers, which constitutes 40 per cent of the farming community.

To address this problem, the SLBC in West Bengal has made a provision under which the BDOs and panchayat samities could recommend a particular farmer in the above category and subsequently the block land and land reform officer would issue a certificate, which would act as an official recognition for the farmer.

Based on this, in the last fiscal, banks in the state disbursed credit to 91,000 share croppers, tenant farmers and agricultural labourers in the last fiscal, with the average loan amount being Rs 10,000. However this was below the target of disbursing credit to of 2 lakh share croppers, pattadars and tenant farmers.

"We have disbursed credit to around 91,000 farmers under DRI scheme at 4 per cent rate of interest, in the last fiscal, based on the certificates issued by the local authorities," said P K Gupta, chairman and managing director of United Bank of India (UBI), and also convener of the SLBC. Consequently, a paper has been sent to the IBA so that it could be circulated to the other SLBCs in the country as well.