Banks urged to give priority to farming sector
Vizianagaram Lead District Manager M. Srinivas said that all banks in the district had been requested to give top priority to agricultural loans and encourage Joint Liability Groups (JLGs) of farmers to minimise their expenditure and make farming a lucrative profession.
Mr. Srinivas said as per the Annual Credit Plan for 2021-22, loans worth ₹4,344 crore would be disbursed, which was 22% higher compared to the previous financial year’s plans in which ₹3,540 crore was allocated.
“Last year’s achievement was ₹3,463 crore, and percentage wise, the disbursal was almost 97% despite the COVID-19 pandemic. That is why we allocated more funds to the farm sector in the current year in which ₹6,749 crore would be disbursed to all sectors including small and medium industries, horticulture and self-help groups,” Mr. Srinivas told The Hindu.
“We are planning to form at least 700 JLGs this year and encourage farmers to take up agriculture activity unitedly. Joint farming activity will reduce expenditure and improve yield. Farmers can collectively concentrate on marketing and sell produce at attractive prices in the markets after a thorough study. The banks are also assured of quick recovery from JLGs,” he said.
Banks have been advised to extend cooperation to farmers by having business correspondents at Rythu Bharosa Kendrams (RBKs) at all 34 mandals. State Bank of India, the Lead Bank for the district, has been holding meetings in Bhogapuram, Denkada, Garividi, Cheepurupalli, S. Kota and other places to achieve coordination among officials of banks and horticulture and agriculture departments.
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