The Hindu : Andhra Pradesh News : Farmers urged not to plump for risky crops

Online edition of India's National Newspaper
Tuesday, Apr 26, 2005

Andhra Pradesh

Andhra Pradesh

Farmers urged not to plump for risky crops

Special Correspondent

Annual credit plan launched at bankers committee meeting

HYDERABAD: The Chief Minister, Y.S. Rajasekhara Reddy, on Monday asked banks to encourage loans only for the crops covered by Minimum Support Price and not for others like chilli and tobacco where there was enormous risk involved.

Launching the State credit plan for 2005-06 at the State-level bankers committee meeting here, he said it was time that farmers were discouraged from going in for crops which were risky not only for themselves but also for the Government.

"The yield and returns may be look attractive like in cotton but the chances of losing were also high. This apart there is a limit to which the Government could go in for market intervention," he said. Citing the example of chilli, he said the Government had lost heavily owing to intense purchases last season at higher rate of Rs. 2700 per quintal and there was no help from the Centre.

Highlights

The highlights of the annual credit plan include a 21.81 per cent rise in overall credit compared to the previous year.

Dr. Reddy placed a long wish list before bankers, while announcing that the exemption from payment of stamp duty on mortgaging of agriculture land for loans would be extended from Rs. 1 lakh to Rs. 2 lakhs. He wanted bankers to bring 12 lakh more farmers into the bank credit ambit, reduce the interest rate on crop loans and for self-help groups.

The Chief Minister, however, said he was not happy with the credit plan for SHGs for 2005-06. It was Rs. 1500 crores while the need was for Rs. 2,200 crores.

The Chief Minister presented mementoes to top officials of Andhra Bank, SBI, SBH, Sri Ananta Grameena Bank, Visakha Grameena Bank and National Bank for Agriculture and Rural Development. The Agriculture Minister, N. Raghuveera Reddy, also spoke.

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