The government on Wednesday announced raising the farm credit target by 11 per cent to Rs 20 lakh crore for the next fiscal with focus on animal husbandry, dairy and fisheries. The agriculture credit target for the current financial year 2022-23 is Rs 18 lakh crore. Finance Minister Nirmala Sitharaman in her budget speech said the government will launch a 'Self-reliant Clean Plant Programme' to boost the availability of disease-free, quality planting material for high-value horticulture crops with an outlay of Rs 2,200 crore.
He said that a new sub-scheme of Pradhan Mantri Matsya Sampada Yojana would be launched with a targeted investment of Rs 6,000 crore to make the activities of fishermen, fish vendors and micro and small enterprises more effective, improve value chain efficiencies can be reached and the market can be expanded.
Agriculture credit target will be increased to 20 lakh crore
Presenting the general budget , the finance minister said, the agriculture credit target will be increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries. The government is increasing the credit target for the agriculture sector every year. Generally, agricultural loans carry an interest rate of nine per cent. However, the government is providing interest subvention to make short-term crop loans available at affordable rates and help boost agricultural production.
Can get two percent interest subsidy
To ensure short term agriculture loans up to Rs 3 lakh to farmers at an effective rate of seven per cent per annum, the government is providing two per cent interest subsidy. To increase the reach of small and marginal farmers in the formal credit system, the Reserve Bank has decided to increase the limit of guarantee-free agricultural loans from Rs 1 lakh to Rs 1.6 lakh.
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