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LATEST NEWS UPDATES | Co-op banks must reach out to more farmers: MP

Co-op banks must reach out to more farmers: MP

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published Published on Mar 21, 2011   modified Modified on Mar 21, 2011
Stating that about 70% of the farming community in the country is still out of the reach of banks, MP Pralhad Joshi said co-operative banks should try to bring more farmers under the banking network, thereby giving a boost to the agricultural sector.

Speaking at the 75th anniversary celebrations of Hubli Primary Co-Operative Agriculture and Rural Development Bank here on Sunday, he said whatever financial facility the government is extending towards the farming sector is only reaching 30% of the farmers. "The rest are not getting any facility as they don't have bank accounts. Hence, co-operative banks should strive to bring them under the banking network," he said.

Joshi said in spite of 70% of India's population engaged in agriculture, only Rs 75,000 crore worth loans of farmers have been waived since Independence. On the other hand, the industrial sector, on which less than 2% of the population is dependent, has enjoyed the loan waiver to a great extent, he claimed.

Quoting a research done by Tata Institute, Joshi said 70% of India's population is ready to switch over from the agriculture if they have a better alternative. In this background, a serious thought need to be spared towards improving agricultural sector. Else, there will a huge food crisis in the future, he predicted.

District minister Jagadish Shettar said he will talk to the chief minister to provide 1% interest loan for farmers to buy farm equipment. He said the government has sanctioned Rs 25 lakh for desilting 7-8 tanks in each assembly constituency and the works will be completed before the onset of monsoon.

Irrigation minister Basavaraj Bommai said only 17 lakh families of the 67 lakh involved in agriculture are getting facilities extended by co-operative banks. He asked the banks to lend loans to new farmers. " India needs a steady agricultural policy like USA where farmers get more benefits from the government and better price for their produce," he added.

The Times of India, 21 March, 2011, http://timesofindia.indiatimes.com/city/hubli/Co-op-banks-must-reach-out-to-more-farmers-MP/articleshow/7749981.cms


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