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In Gujarat Agricultural Loans Rise 11 %

In the Gujarat state, banks are seeing good off-take in agricultural loans. At the end of June 2016, the agricultural advances extended to farmers in the state stood at Rs 69,100 crore and it is 11% more compared to the same period, last year.

According to the State Level Bankers’ Committee release, the agriculture advances during the first quarter of 2016-17 financial year was over Rs 7,000 crore more when compared to Rs 62,081 crore in June 2015.

Convener of SLBC, Vikramaditya Singh Khichi said, “In the state, the growth in agriculture credit for the quarter ended June 2016 is about 12.47 percent more compared to March, 2016. The growth could have been even more, if the monsoon had arrived on time.”

Khich also said that, since the state has received satisfactory monsoon from July onwards, good agriculture credit off-take can be expected in the subsequent quarter of the year. There has been good disbursements in August and September as well as the rains arrived late.

Agriculture loans are made available to farmers in form of crop loans, for purchasing agricultural equipment, constructing agriculture infrastructure and other ancillary activities and these loans that form part of “priority” lending for banks, said Khichi.

Gujarat currently registered an average rainfall of 652 mm and has a 18% rainfall deficit. Only six of the 33 districts have got over 100 percent rainfall named as Valsad in south, Gir-Somnath, Bhavnagar and Jamnagar in Saurashtra region, Dahod in east and Aravalli in North Gujarat.