Regional rural banks are comparatively more active in UP.
Uttar Pradesh, which contributes about 20 per cent to the country’s food grain pool, has been showing higher growth in ground level agricultural credit flow vis-à-vis national growth rate over the last two years.
However, the state still accounts for only 7-8 per cent of the total agricultural credit flow in the country.
Another noticeable factor is the higher share of regional rural banks (RRBs) in the disbursal of agricultural credit in UP compared to national average. There are 10 RRBs in UP with total branch network of about 3,200 across the state.
RRBs have a share of about 23 per cent in the total disbursal of ground level agricultural credit compared to the national average of less than 10 per cent.
During 2009-10 and 2010, the ground level agricultural credit in UP stood at 39.2 per cent and 17.8 per cent respectively, while the corresponding all India growth rate stood at 27.4 per cent and 16.2 per cent.
The actual agricultural credit flow in UP during 2009-10 and 2009-10 was Rs 29,056 crore and Rs 4,241 crore compared to all-India figures of Rs 3,84,514 crore and Rs 4,46,779 crore.
UP is expecting its food grain production jump by over 12 per cent during the current year to 53 million tonnes (MT). Last year, UP was feted as India’s largest food grain producer clocking production of over 47 MT.
The state is also expecting a significant spurt in rabi production, especially in face of Green Revolution Project underway in 28 districts in eastern UP.
For the 2012-13, the potential of state ground level credit, which is technically termed as Potential Linked Credit Plan (PLP) in UP has been pegged at almost Rs 80,000 crore for 2012-13. This would be about 25 per cent over the state credit target fixed for the current financial year.
Against PLP for 2011-12 at Rs 64,531 crore, the PLP for 2012-13 in UP has been estimated at Rs 79,988 crore. In 2010-11, PLP stood at Rs 52,835 crore.
