Rs 85 billion proposed for agri credit

The Agriculture Credit Advisory Committee (ACAC) has suggested a target of Rs 85 billion for 2004-05 which is 30 percent higher than the target of last year and 16 percent higher than actual disbursement during 2003-04.
This was decided in the annual meeting of the ACAC chaired by State Bank Governor Dr Ishrat Husain on Saturday.
The meeting, which was attended by all commercial banks, Zarai Taraqqiati Bank Ltd (ZTBL), Punjab Provincial Co-operative Bank Ltd (PPCBL), officials of Federal and Provincial Governments, Chambers of Agriculture and other stakeholders, reviewed the agriculture credit during 2003-04.
Dr Ishrat Husain, appreciated the impressive performance of commercial banks, particularly of five major banks, both in disbursement and recoveries of agriculture credit.
This performance demonstrated that the revamped agriculture credit schemes have produced positive results.
The committee expressed satisfaction that total disbursement of agricultural credit during 2003-04 had reached the level of Rs 73.6 billion, ie 12.2 percent higher than the target of Rs 65.5 billion and 24.8 percent higher than the actual disbursement of previous year.
Five major commercial banks disbursed Rs 33.2 billion; ZTBL disbursed Rs 29.9 billion; PPCBL Rs 7.7 billion; and domestic private banks Rs 2.7 billion.
The five major commercial banks jointly achieved 148 percent of their target and surpassed the ZTBL, the traditional lender in the agriculture sector.
The committee also appreciated the efforts of all banks in reducing the mark-up rates in the range of 4-5 percent on their agriculture financing and advised them to publicise this reduction as well as "their other products introduced in agriculture credit".
The representatives of farming community termed the introduction of 'Revolving Credit Scheme' as a revolutionary step which would empower the small farmers to make repayments according to their own choice of timing.
They also welcomed the President of Pakistan's decision to take away the powers of arrest and detention of farmers from ZTBL.
While discussing SBP Agricultural Credit Training Programmes/Field Visits, the Committee appreciated the efforts in this behalf and observed that these training sessions have proved very useful and should be continued.
Regarding Tractor Financing, the Committee observed that an amount of Rs 6,277.8 million was disbursed for the purchase of 21,244 tractors during 2003-04 compared to Rs 4,094.7 million for the purchase of 14,570 tractors during the same period of previous year showing an of 53.2 percent in amount and 48.5 percent in the number of tractors financed.
"While expressing its satisfaction over the performance of the agriculture credit disbursement, the Committee suggested a target of Rs 85 billion for the year 2004-05, ie 30 percent higher than the target of last year and 16 percent higher than the actual disbursement during the year 2003-04," said a SBP statement.