RBI nudges banks in Goa to work towards doubling farmers’ income

PANAJI: In line with Prime Minister Narendra Modi's vision to double farmer's income by 2022, the Reserve Bank of India (RBI) on Friday urged all the banks in Goa to support farmers with financial and marketing requirements.

While formulating a strategy to ensure that banks continue to lend to farmers, especially in the rural belt, the apex bank has stressed on the need for a proper study to see if the loans and schemes given to farmers create an impact.

"We need to have end to end assistance. You cannot leave people halfway," RBI executive director Surekha Marandi said.

"Financing this sector, say trawler owners, is important but the end point, that is marketing, is also important," he said.

Disbursal of loans to the agriculture and allied sectors in the state has shown a marked improvement in Goa with demand for credit exceeding the target set in the annual credit plan for 2017-18. Against a projection of Rs 252.44 crore banks have lent Rs 270.20 crore to the agricultural and allied sector.

However, a careful look at the data released by banks shows that the increase is largely due to poultry farming, animal husbandry, fisheries and other ancillary activities.

Crop loans for farmers to meet cultivation expenses that have been disbursed for 2017-18 amount to just 56.90% of the annual credit plan estimate. Against a target of Rs 109.95 crore, farmers have taken loans of Rs 62.57 crore.

"A farmer does not have the tenacity or perseverance to go to a bank to get loans. He may go once or twice. In the village, the money lender gives money outright. So bankers need to do some handholding so that farmers are confident enough to approach banks for crop loans," chairman on the National Council for MSME of ASSOCHAM Manguirish Pai Raiker said.