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Agriculture Loan and Insurance
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.