Shah asks ARDBs to give more long term loans to the Agriculture sector

18 Jul 2022 , 12:57 PM

According to Union Cooperation Minister Amit Shah on Saturday, Agricultural and Rural Development Banks (ARDBs) must provide more long-term loans to the agricultural sector, especially for irrigation and other infrastructure.

Shah stated that the government is creating a database on cooperatives to develop this industry because it is crucial for accelerating farm expansion and tripling farmers’ income. He emphasized that boosting the sector–especially irrigation–is necessary to raise farmers’ earnings and advised cooperative banks to concentrate on offering loans for expanding irrigated acreage.

According to Shah, if all of the country’s 49.4 crore acres of fertile land were irrigated, it could feed the whole world, making it the country with the second-highest amount of arable land after the United States. Currently, the monsoon season’s rainfall determines the availability of 50% of India’s arable land.

Speaking at a national conference in New Delhi, Shah said that during the past nine decades, ARDBs have operated throughout the nation under various titles. In 1924, the majority of them served as land mortgage banks and were the first to provide farmers with long-term financing. Farmers’ reliance on the monsoon was lessened with the conversion of these banks into ARDBs.

Long-term financing changed gradually, he claimed. According to the data, long-term finance provided by cooperatives has not increased over the past 90 years, according to Shah. In particular, long-term and short-term finance for agriculture is paralysed in several regions of the nation. Activities are carried out effectively in many places, but not always in all states. They need to be revived.