(The Gist of Kurukshetra) Agriculture Credit [MARCH-2018]

(The Gist of Kurukshetra) Agriculture Credit

[MARCH-2018]

Agriculture Credit:

Credit for agriculture plays a pivotal role in the agricultural development of India. It adds to the productivity by supporting mechanization and contributes to the growth of Agriculture by enabling the purchase of variable inputs. The direct agriculture credit amount has a positive and statistically significant impact on agriculture output and its effect is immediate (RBI, 2009). Recognizing the multifold benefits of agricultural credit, the volume of institutional credit for agriculture sector has been raised from Rs. 10 lakh crore in 201718 and to Rs. 11 lakh crore for the year 2018-19. Meeting the rural economy’s credit requirement will improve livelihood for farmers, reduce dependency on the informal lending sector allow investment in better inputs & help the farmer deploy technology at the field level.

Other Initiatives

The government has provided Rs. 200 crore t encourage an organized cultivation of highly Specialized medicinal and aromatic plants and associated industry. There is also a provision of subsidized machinery for management of crop residue for Haryana, Punjab & UP farmers to get rid of environmental hazard.

Conclusion:

The Indian agriculture is on the path of structural as well as institutional. Transformation The multipronged approach will make agriculture more dynamic and productive. The focus on FPOs, food processing, agricultural marketing agri-exports are some of the examples how government is able to reach the layers of agriculture dynamism. The setting up of minimum support price for agricultural produce above the 1.5 times of production cost shows government concern to the farmers. The Union Budget has come up rightly on the expectations of agriculture community both on the short as well as long term perspective. This is the way forward in the doubling farmer’s income by 2022.

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Courtesy: Kurukshetra