New Delhi:
Finance Minister Nirmala Sitharaman is set to present the General Budget for the financial year 2024-25 in Parliament on July 23.
According to a government official, the budget may announce a significant increase in the agricultural loan target, raising it by 25 percent to ₹25 lakh crore.
This move comes after a detailed assessment of the block-wise loan capacity.
Increased Agri-Loan Target
Current Target
For the financial year 2024, the government had set an agri-loan target of ₹20 lakh crore, which has already surpassed ₹24.84 lakh crore.
New Target
The proposed target for the upcoming financial year is ₹25 lakh crore.
This is based on the Potential Linked Credit Plan (PLCP) formulated by the National Bank for Agriculture and Rural Development (NABARD) at the block level.
The PLCP evaluates the credit capacity required for each block.
Understanding PLCP and Its Impact
PLCP is a comprehensive document that outlines the potential for rural economic activities from both physical and financial perspectives.
For development purposes, districts are divided into blocks, which are then analyzed to determine their specific agricultural needs and credit capacities.
Block-Wise Analysis: NABARD’s assessment considers agricultural activities and schemes like ‘One District, One Crop’ to decide the loan capacity for each block.
This information is then shared with the Finance Ministry to help set realistic and beneficial targets.
One District, One Crop Scheme
The ‘One District, One Crop’ scheme is part of the broader ‘One District One Product’ initiative aimed at promoting regional development by identifying and supporting the unique agricultural products of each region. Examples include:
Lakadong Turmeric from West Jaintia Hills, Meghalaya
Various Mango Varieties from different states
Lavender Products from Doda district, Jammu and Kashmir
Final Decision Pending
While the potential target of ₹25 lakh crore has been proposed based on NABARD’s assessments, the final decision will rest with the Finance Ministry.
The goal is to ensure balanced regional development and support for farmers by providing adequate financial resources tailored to each area’s unique agricultural needs.
