Agri credit grows 16% in FY07

The flow of institutional credit to agriculture has exceeded the target for the third consecutive year in 2006-07. The actual credit disbursement is estimated to have touched Rs 2,03,297 crores by March-end, about 16.17 per cent higher than the year's target of Rs 1,75,000 crores.

According to official figures, nearly 7.08 million new farmers have been linked to commercial banks and regional rural banks in 2006-07, exceeding the target of 5 million set for the year.

Of these, 4.45 million famers have been financed by the public sector banks and 0.62 million by private commercial banks. The regional rural banks have also advanced loans to 1.99 million new farmers.

Besides, cooperative banks have financed about 1.28 million new farmers in 2006-07, raising the total number of new farmers linked to the institutional credit sources during the year to nearly 8.35 million.

Under the Kisan Credit Card scheme introduced in August 1998, over 65 million cards had been issued till February 2007. These cards enable the farmers to get timely loans from the banks in a flexible, hassle-free and cost-effective manner.

The flow of agricultural credit began to surge from 2003-04, when the annual credit disbursement stood at Rs 87,000 and a target was fixed to double it in three years. It rose to Rs 1,25,000 crores in 2004-05, Rs 1,67,775 crores in 2005-06 and Rs 2,03,297 crores in 2006-07.