Government disburses Rs 3.93 lakh crore farm credit in April-January period

NEW DELHI: The government disbursed Rs 3.93 lakh crore as agricultural credit during the April-January period last fiscal, as against the target of Rs 4.75 lakh crore, Parliament was informed today.

"During the year 2011-12 (as on January 31, 2012), disbursement of agricultural credit has been Rs 3,93,410.99 crore as against the target of Rs 4,75,000 crore," Minister of State for Agriculture Harish Rawat said in a written reply to Lok Sabha.

Disbursement of agriculture credit was Rs 4,68,291.28 crore during the 2010-11 fiscal as against the target of Rs 3,75,000 crore, thereby exceeding the target by about 25 per cent, he added.

Replying to a query on impact of farm credit on inflation, the Minister said it may not have any significant impact.

"As reported by the National Bank for Agriculture and Rural Development, farm credit constitute a very minuscule portion (0.04 per cent) of the total money supply, hence it may not have any significant impact on inflation," he added.

The government has proposed to raise the farm credit target in 2012-13 to Rs 5,75,000 crore to ensure that the farmers' need of timely access to affordable credit is redressed.