Ahmedabad: Thanks to a good monsoon, and record sowing at 2020-21, disbursed agricultural loans in Gujarat grew 22%.
According to the latest report on the State Level Banker Committee (SLBC), Gujarat, the transfer of agricultural loans in 2020-21 rose to RS 84,788 Crore from RS 69,325 Crore.
The report was submitted during the 169th SLBC meeting held last week.
The sources of the banking sector said that the main reason behind the increase in greater distribution of sowing.
“Sampuran is very good because of the good monsoon.
As a result, agricultural activities take steps,” said a senior public sector bank official, with anonymity requirements.
The official added: “To improve sowing, farmers are looking for higher loans in the form of agricultural loans to buy seeds, fertilizers, and agricultural equipment.” As a consequence, he said, the submission of agri loans rose significantly.
According to data from the Gujarat Department of Agriculture, Kharif Sowed occurred at 87.24 lakh hectares in the state in 2020, up 2.7% against an average of 10 years from the 84.9 lakh hectare.
Rabi sowed showed an increase of 34.2% in 2020-21 and took place at 46.15 lakh hectares against an average of 10 years from the hectare of 24.38 lakh.
“Sampuran is good at the start of the rainy season in 2020.
However, there was damage to plants due to heavy rainfall in July,” said a senior agriculture official.
“As a result, farmers must sow again, which can contribute to an increase in agricultural loans.” The source said that more harvesters and tractors were bought by farmers to meet their needs.
Data from the Federation of Automotive Dealers Association (FADA) shows that tractor sales increased from 47,067 units in 2019-20 to 55,678 units at 2020-21, up to 18% year-on-year.
“Sales remain good because of good monsoons, not just tractors but also harvesters,” said an official Fada.