Over 3.40 lakh crore agri credit disbursed till December 2011

NEW DELHI: Agriculture credit to the tune of Rs 3.40 lakh crore has been disbursed across the country till December-end in the current financial year, according to an official statement.

Agriculture credit flow has gone up from Rs 86,981 crore in 2003-04 to Rs 3.40 lakh crore in 2011-12 (up to December- end last year, an official statement said.

With the credit disbursal data for the last two months and the current month yet to be compiled, credit flow target of Rs 4.75 lakh crore is likely to be exceeded again, it added.

Target for the next financial year beginning April 1, 2012, has been fixed at Rs 5.75 lakh crore, increase of Rs 1 lakh crore over the current financial year, the statement said.

Credit disbursement in 2010-11 was of Rs 4.46 lakh crore as against the target of Rs 3.75 lakh crore, it said.

The flow of agricultural credit since 2003-04 has consistently exceeded the target.

Agricultural credit means any of several credit vehicles used to finance agricultural transactions, including loans, notes, bills of exchange and banker's acceptances.

These types of financing are adapted to the specific financial needs of farmers, which are determined by planting, harvesting and marketing cycles.

Short-term credit finances operating expenses, intermediate-term credit is used for farm machinery and long-term credit is used for real-estate financing.