Thursday, September 29, 2016

‘Doubling Farmers’ Income by 2022’ - Measures

Government of India in the Union Budget 2016-17 had announced its resolve to double the income of farmers by 2022.

The strategy to achieve this goal, inter-alia, include,
-        Focus on large budget irrigation
-        Provision of quality seeds and nutrients
-        Investments in warehousing and cold storage chains
-        Promoting food processing
-        Creation of a national farm market, removing distortions and develop infrastructure such as e-platform across 585 stations
-        Strengthening of crop insurance scheme
-        Promotion of ancillary activities like poultry, bee-keeping and fisheries.

Bank should simplify their documentation for crop loans and ensure speedy sanctioning and disbursal.

The Lead Bank Scheme should be leveraged for doubling farmer’s income by 2022. Lead banks are accordingly advised to ensure the following:
a)    Work closely with NABARD in preparation of Potential Linked Plans & Annual Credit Plans.
b)    Include ‘Doubling of Farmer’s Income by 2022’ as a regular agenda in SLBC, DCC, DLRC and BLBC.
c)    Use the benchmarks as provided by NABARD.
d)    Map the overall strategy to the agriculture/agro-ancillary lending plan of your bank.
Based on RBI circular dated 29/09/2016. For any further clarification please refer