Commercial Banks & Small Farmers

abhishreshthaa

New member
It has been estimated that nearly 70 percent of farmers owning less than 2 hectares of land are not getting bank credit; only large landowners have been found creditworthy and suitable for banks advances.


But such a situation cannot continue for long. Under the direction of the Planning Commission, Small farmers Development Agencies have been set up to identify small farmers and work out economically viable schemes of agricultural development.


Commercial banks have to group them into various categories for credit support so as to enable them to become viable cultivators. For instance, in areas where the subsoil water table is high, the small cultivator has to be helped by banks to convert his dry holding into wet holding.


With pump set loan, the cultivator can change the cropping pattern into double or even multiple cropping activity. As regards small cultivators near urban areas and with irrigation facilities, commercial banks can help them to go in for poultry farming and maintaining one or two vegetable cultivation or combine it with small milch cattle.
 
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