Budget Special 2017: Govt raises agri-credit target to Rs 10 lakh-cr

Feb 02, 2017, 09:03 IST | Agencies

With an aim to double farmers' income by 2022, Centre also raises Budget allocation for Agriculture Ministry by 6 per cent, to Rs 51,026 crore, for 2017-18

New Delhi: Aiming to double farmers' income by 2022, the Centre yesterday increased agri-credit target by 11 per cent to Rs 10 lakh crore for next fiscal and announced two dedicated funds with a corpus of Rs 13,000 crore to promote micro irrigation and dairy processing.

It also raised allocation for Agriculture Ministry by 6 per cent to Rs 51,026 crore for 2017-18 from Rs 48,072 crore (revised estimate) of this fiscal.

FM Arun Jaitley set the target of achieving 40 per cent coverage of farmland under the new Pradhan Mantri Fasal Bima Yojana and earmarked Rs 9,000 crore for next fiscal.

“For a good crop, adequate credit should be available to farmers in time,” he said.

Since 40 per cent of small and marginal farmers avail credit from the cooperative structure, Jaitley said The Primary Agriculture Credit Societies (PACS) act as the front end for loan disbursements.

“We will support NABARD for computerisation and integration of all 63,000 functional PACS with the Core Banking System of District Central Cooperative Banks. This will be done in three years at a cost of Rs 1,900 crore.”

Rs 58,663 cr
The total allocation for agri and allied sectors for next fiscal, up from s crore

Rs 5,000 cr
Corpus to create a dedicated micro-irrigation fund

Rs 15,000 cr
Amount set aside to provide short-term crop loans at subsidised interest rates to farmers

Rs 10 lakh cr
Next fiscal's agri-credit target

Rs 40,000 cr
The corpus for NABARD

Ayes and nay
'This is a Budget for the future — for farmers, underprivileged, transparency, urban rejuvenation, rural development, enterprise'
PM Narendra Modi

'It is a budget aimed at all-round development. It is pro-village and pro-farmers, and it also provides new possibilities for youths willing to strike out on their own. It has given relief to middle class and will also help realise the dream of the poor and lower middle class of owning a house'
BJP President Amit Shah

'This budget will accelerate nation's growth and development. The Centre has emphasised on maximising employment opportunities in the general budget and has paid special attention to the inclusion of the poor in financial provisions of every scheme'
Chhattisgarh Chief Minister Raman Singh

'While the Budget has given relief to salary earners, it completely forgot farmers, youth, senior citizens and women with no substantial provisions for them'
Sena MP Arvind Sawant

Industry reacts on impact on various sectors
'It is not very dramatic (the Budget) for it to be a big game changer, but it is a reasonably good one, and additional investment in agriculture is a healthy sign'
Ashok Gulati Agri-economist and former chairman of Commission for Agricultural Costs & Prices

'FM has chosen not to change the import duty on edible oil. This will discourage farmers from continuing to grow oilseeds, and they may switch to other crops, while our dependence on imports of vegetable oil will increase.'
Atul Chaturvedi Edible oil industry body SEA president

'The dairy processing infra fund of R8,000 crore is a positive step for the sector, but the government needs to take a holistic view and develop a policy framework to support both cooperatives and private dairy companies'
Srikumar Misra Milk Mantra Managing Director and CEO

'The Budget is sober in approach. In the agri-rural space, the FM has given a 24% hike. If this largely goes towards productive infrastructure, it would give a fillip to the rural economy and create jobs'
Sanjay Kaul National Collateral Management Services Ltd managing director and CEO

'Disappointed that there is practically no encouragement to mechanisation of farms, that being one of the key factors behind raising farm productivity'
Rohtash Mal EM3 Agri Services chairman and managing director

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