Funds 2023 | Govt raises agriculture credit score goal by 11% to ₹20 lakh crore for FY24

Image for representational purpose only.

Picture for representational goal solely.
| Photograph Credit score: Reuters

The federal government on February 1 introduced an 11% hike in agriculture credit score goal to ₹20 lakh crore for the following fiscal 12 months with a concentrate on animal husbandry, dairy and fisheries.

The agricultural credit score goal is ₹18 lakh crore for the present 2022-23 fiscal.

Amongst different big-ticket bulletins, the Finance Minister Nirmala Sitharaman in her Budget speech stated the federal government will launch the “Aatmanirbhar Clear Plant Programme” to spice up the provision of disease-free, high quality planting materials for prime worth horticultural crops at an outlay of ₹Rs 2,200 crore.

A brand new sub-scheme of Pradhan Mantri Matsya Sampada Yojana will likely be launched with a focused funding of ₹6,000 crore to additional allow actions of fishermen, fish distributors, and micro and small enterprises, enhance worth chain efficiencies, and increase the market, she stated.

Additionally Learn | Emergency Credit Line Guarantee Scheme supported MSMEs during COVID, led to remarkable credit growth: Economic Survey

“The agriculture credit score goal will likely be elevated to ₹20 lakh crore with a concentrate on animal husbandry, dairy and fisheries,” the Finance Minister stated.

The federal government has been growing the credit score goal for the farm sector yearly.

Usually, farm loans entice an rate of interest of 9%. Nonetheless, the federal government has been offering curiosity subvention to make accessible short-term crop loans at an inexpensive price and assist increase farm output.

The federal government is offering a 2% curiosity subsidy to make sure farmers get short-term farm loans of as much as ₹3 lakh at an efficient price of seven% every year.

To reinforce protection of small and marginal farmers within the formal credit score system, the RBI has determined to lift the restrict for collateral-free agriculture loans from ₹1 lakh to ₹1.6 lakh.

The curiosity subvention is given to public sector banks, non-public lenders, cooperative banks and regional rural banks on the usage of their funds and to Nabard for refinancing Regional Rural Banks (RRBs) and cooperative banks.


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