Union Budget: Agriculture credit target increased by Rs 1 lakh cr for 2012-13
Markets will look to consolidate in the week ahead after most event risks like monetary policy and budget now over.
Finance Minister Pranab Mukherjee today announced Rs 1,00,000 crore increase in the agriculture credit target to Rs 5,75,000 for the next fiscal and raised the outlay for farm sector by about Rs 3,000 crore.
"Agriculture continues to be a priority to the government.
The total plan outlay for agriculture and cooperation has been increased by 18 per cent from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13," Mukherjee said in his budget speech.
The allocation for scheme "Bringing Green Revolution in Eastern India" was also increased by Rs 600 crore to Rs 1,000 crore in next fiscal considering the success of the programme that led to an additional paddy production of 7 million tonne in the Kharif season of 2011-12 crop year.
The allocation for Rashtriya Krishi Vikas Yojna (RKVY) was also increased by 17 per cent to Rs 9,217 crore.
"Farmers need timely access to affordable credit. I propose to raise the target for agricultural credit in 2012-13 to Rs 5,75,000 crore. This represents an increase of Rs 1 lakh crore," he said.
The credit target for this fiscal has been set at Rs 4,75,000 crore. During April-November period, credit worth Rs 2,94,023 were disbursed by banks to farmers, according to data provided by Economic Survey.
"The outlay for Rashtriya Krishi Vikas Yojna is being increased from Rs 7,860 crore in 2011-12 to Rs 9217 crore in 2012-13," Mukherjee said.