BHUBANESWAR:Even though the State Government has launched a campaign to create awareness among farmers to use the services offered by Primary Agriculture Cooperative Societies (PACS), around 11 lakh farmers will not be able to access institutional credit this kharif season as they have defaulted in loan repayment.
The State Government has set a target to provide crop loan to the tune of Rs 7,200 crore to farmers for kharif crops through cooperative credit structures with PACS being the last mile outlet for dispensation of agriculture credit.“Of the 45 lakh Kishan Credit Card (KCC) holders who are members of the PACS, only 21,44,037 cards are active. The loan target has been made keeping these active members in mind,” sources in the Cooperation department said.
Though the State Government had targeted to provide short term credit of Rs 7,000 crore during Kharif 2017, the loan disbursement was to the tune of Rs 5,642 crore. Sharecroppers are unlikely to benefit from institutional credit, particularly from cooperative sector during this Kharif season as the PACS have not covered a vast majority of them under joint liability group (JLG) as planned by the State Government, the sources said.
Last month, the State Government had announced its decision to extend agricultural loan to landless farmers on the lines of credit given to self help groups (SHGs). Cooperation Minister SN Patro had said loans would be disbursed by cooperative societies to JLGs having at least five members. Each group will be collectively entitled to a term loan of Rs 50,000 with one per cent interest. The loan will be extended without any collateral.
“The organised JLGs are not fully active after one round of availing credit. Either the members have become defaulters or they have stopped availing finance from the PACS or Central Cooperative Bank branches,” the sources said.
Of the Rs 20,691 crore short term crop loan extended to farmers by commercial, regional rural and cooperative banks, Rs 2,473.66 crore have turned to non-performing assets (NPA) as on December 31, 2017. As per Government report, the NPA position of regional rural banks (RRBs) is 23 per cent followed by 14.5 per cent of commercial banks. However, the NPA position of cooperative banks so far as short term crop loan is concerned was 6.8 per cent by the end of last year.
Farm facts
Govt to provide crop loan of Rs 7,200 crore to farmers for kharif crops
Only 21,44,037 of the 45 lakh Kishan Credit Cards are active
Loan disbursement during Kharif 2017 was Rs 5,642 crore
Of Rs 20,691 crore short term crop loan extended to farmers by banks, Rs 2,473.66 crore have turned to NPA