BANKING TRADE AND COMMERCE

STATE AID TO AGRICULTURE

India being primarily an agricultural country her prosperity depends to a large extent upon the productivity of land and the economic conditions of the farmers. The productivity of land, however, is limited by a number of factors such as uneconomic holdings, dependence of agriculture upon the vagaries of monsoon, etc. The factors affecting economic conditions of the agriculturist, are low productivity of soil, inefficient and unskilled labour, etc. These factors together render the agriculturist incapable of improving agriculture solely by his own efforts. What he needs most is financial assistance.

The need for financing agriculture was realised very early and assistance was given from time to time during the pre-British period. Under the British rule a number of Tagai Acts providing finance were passed. But the agriculturist began to receive active assistance only after the Land Improvement Loans Act of 1883 and the Agriculturists' Loans Act of 1884 were passed. The former Act is broadly concerned with long-term finance and the latter with short-term accommodation.

Land Improvement Loans Act of 1883.

Loans under this Act are granted to cultivators for works of improvement on land, such as construction of wells and tanks, preparation of land for irrigation, drainage, reclamation, enclosures, etc. The Collector, Prant Officers and Mamlatdars are authorised to grant loans to the extent of 8 per cent of the total amount of loans to be disbursed, i.e., 16 pies per rupee per annum. In particular cases, however, the Government may reduce the rate of interest or may not charge any interest. The loan is given where the grantor is satisfied as to the security with a margin of safety. Generally immovable property is demanded as security against loans to be advanced under this Act.

This Act was in force in one form or another from 1871. Loans under it were chiefly given for the sinking of wells, the eradication of shrubs and deep-rooted weeds from fields and the making of embankments. In the thirty years from 1877-1907 a sum of only two lakhs of rupees was advanced, and of this Rs. 30,000 were given out in the famine years of 1896-97 and 1897-98 and almost a lakh in 1899-1900 and 1900-01. In 1908 also, as the 1907 rains were a partial failure, it was thought well to stimulate the demand for labour by this means and about Rs. 83,500 were advanced. Barring these years the average yearly amount advanced to cultivators in ordinary times was only Rs. 2,631.

Agriculturists' Loans Act, 1884.

Loans under this Act are granted to holders of arable lands for purchase of seed, fodder, agricultural stock or implements. They are also granted to hire cattle, to rebuild houses destroyed by calamities, to meet the monetary needs of cultivators while engaged in work on land or to achieve some such purpose. The rate of interest, the type of security and the terms and conditions for the grant of loan are the same as under the Land Improvement Loans Act of 1883.

This Act was applied to Berar in 1891. Loans granted under this Act were not considerable. In the famine years (1896 to 1898) about Rs. 84,000 were distributed and in 1908 Rs. 13.375 But apart from these exceptional cases the average yearly amount was hardly over Rs. 1,000.

"Many reasons were given for the comparative unpopularity of the Government loans, the most common being perhaps, the delays connected with the system. To this may be added a few, factors, which elsewhere also operate against the success of tagai. Government occupied an infinitely stronger position than the ordinary creditor, and insisted upon prompt repayment; the latter, moreover, would lend for marriages and the like ceremonies which made indebtedness a social necessity to the average cultivator, and he was naturally charged of doing so when the land was already pledged to a far stronger claimant; hence the cultivator who might need such a loan was careful not to do anything which might endanger his chance of getting it."[Amravati District Gazetteer (year 1911), page 225-6.]

What seemed necessary was an improved system of distri-bution. In the Melghat area especially, the cultivation was more backward, and the Korkus were heavily indebted and paid most extortionate interest on their scanty loans. Such conditions ruled for a very long time in Amravati district. During the mean time the Government assistance was continued without involving any important change in the distribution.

With the advent of Independence, the agricultural sector of  the district economy received top priority as far as Government assistance was considered, and necessary changes were introduced in the distribution of tagai loans. The amount of loans was also increased with a view to stepping up agricultural production. Thus, besides the above two Acts (viz., the Agriculturists' Loans Act and Land Improvement Loans Act), the Government also extended loans and subsidies to agriculturists under the Grow More Food campaign launched by the Government.

TABLE No. 15

FINANCIAL ASSISTANCE TO AGRICULTURE, DISTRICT AMRAVATI

Particulars

Year

Loans Under Land Improvement Loans Act, 1883

Loans Under Agriculturists' Loans Act, 1884

Financial Assistance Under Grow More Food Campaign

Any other Loans (For project area)

Loans

Cash Subsides

(1)

(2)

(3)

(4)

(5A)

(5B)

(6)

  

Rs.

Rs.

Rs.

Rs.

Rs.

1. Applications pending at beginning of

1952-53

968

573

184

--

--

the year.

1953-54

1,054

548

135

--

--

--

1954-55

2,042

642

196

--

--

--

1955-56

1,087

822

275

--

--

--

1956-57

761

110

143

--

--

--

1957-58

50

20

10

--

--

--

1958-59

236

134

14

--

--

--

1959-60

45

25

11

--

--

--

1960-61

325

175

40

--

--

--

1961-62

18

12

2

--

--

2. Amount involved

1952-53

25,150

57,300

1,84.000

--

--

--

1953-54

10,700

50,300

1,35,000

--

--

--

1954-55

40,400

60,400

1,96,000

--

--

--

1955-56

1,08,700

87,200

2,75,000

--

--

--

1956-57

7,600

1,10,000

1,43,000

--

--

--

1957-58

5,000

1,00,000

1,50,000

--

--

--

1958-59

23,600

1,15,000

1,40,000

--

--

--

1959-60

45,000

1,75,000

1,10,000

--

--

--

1960-61

3,25,000

1,25,000

1,40,000

--

--

--

1961-62

18,000

12,000

20,000

--

--

3. No. of applications received during the

1952-53

6,565

2,735

376

--

--

year.

1953-54

8,866

6,147

837

--

--

--

1954-55

8,153

6,132

735

--

--

--

1955-56

4,429

3,723

487

--

--

--

1956-57

5,691

3,215

345

--

--

--

1957-58

2,837

2,169

175

--

--

--

1958-59

3,413

1,387

158

--

--

--

1959-60

7,738

4,249

632

--

843

--

1960-61

6,135

2,630

547

--

1,157

--

1961-62

5,195

3,289

749

--

1,345

4. Total amount applied for by these

1952-53

9,51,150

9,27,000

13,45,000

--

--

applicants.

1953-54

4,42,300

8,31,700

20,23,500

--

--

--

1954-55

4,84,600

12,32,600

17,35,000

--

--

--

1955-56

8,84,900

5,44,600

15,48,000

--

--

--

1956-57

1,03,800

3,21,500

6,90,000

--

--

--

1957-58

1,84,900

6,50,700

19,75,400

--

--

--

1958-59

2,82,600

4,95,000

15,80,000

--

--

--

1959-60

8,97,080

15,49,000

12,64,000

--

84,300

--

1960-61

9,27,000

12,52,000

15,75,000

--

1,45,500

--

1961-62

15,58,500

16,44,500

9,74,500

--

2,07,300

5. No. of applications sanctioned

1952-53

3,255

1,745

323

--

--

--

1933-54

5,568

3,707

630

--

--

--

1954-55

6,853

3,247

579

--

--

--

1955-56

3,971

2,372

431

--

--

--

1956-57

3,503

3,185

375

--

--

--

1957-58

2,235

2,000

150

--

--

--

1958-59

2,160

1,336

147

--

--

--

1959-60

6,943

3,163

470

--

757

--

1960-61

6,135

2,464

580

--

1,052

--

1961-62

4,652

2,949

603

--

1,053

TABLE No. 15-contd.

Particulars

Year

Loans Under Land Improvement Loans Act, 1883

Loans Under Agriculturists' Loans Act, 1884

Financial Assistance Under Grow More Food Campaign

Any other Loans (For project area)

Loans

Cash Subsidies

(1)

(2)

(3)

(4)

(5A)

(5B)

(6)

   

Rs.

Rs.

Rs.

Rs.

Rs.

6. Total amount asked for in 5 above

1952-53

5,26,250

7,35,800

11,24,000

--

--

--

1953-54

3,39,000

8,23,000

20,28,000

--

--

--

1954-55

4,38,750

11,75,400

18,25,600

--

--

--

1955-56

9,80,400

4,35,500

17,33,100

--

--

--

1956-57

75,400

3,75,100

7,21,500

--

--

--

1957-58

1,29,000

6,35,000

19,22,000

--

--

--

1958-59

1,37,000

5,47,000

14,87,000

--

--

--

1959-60

6,37,000

16,08,000

12,45,000

--

97,000

--

1960-61

9,45,000

12,50,000

15,74,000

--

1,85,000

--

1961-62

12,13,500

13,36,000

7,47,500

--

2,03,500

7. Total amount actually sanctioned during

1952-53

4,43,360

6,53,448

9,00,572

--

--

the year.

1953-54

2,34,994

7,20,067

17,39,560

--

--

--

1954-55

3,94,625

10,46,302

15,60,231

--

--

--

1955-56

8,89,860

3,30,275

15,60,797

--

--

--

1956-57

27,635

3,19,099

6,26,904

--

--

--

1957-58

64,178

5,10,176

17,60,231

--

--

--

1958-59

79,530

4,59,950

12,10,115

--

--

--

1959-60

5,24,067

14,12,072

11,81,978

--

75,700

--

1960-61

7,34,235

10,10,033

13,36,460

--

1,05,250

--

1961-62

10,23,050

11,20,124

6,60,456

--

1,05,350

8. Total amount actually disbursed during

1952-53

4,43,360

6,53,448

9,00,572

--

--

the year.

1953-54

2,34,994

7,20,067

17,39,560

--

--

--

1954-55

3,94,625

10,46,302

15,60,231

--

--

1955-56

8,89,860

3,30,275

15,60,797

--

--

--

1956-57

27,635

3,19,099

6,26,904

--

--

--

1957-58

64,178

5,10,176

17,60,231

--

--

1958-59

79,530

4,59,950

12,10,115

--

--

--

1959-60

5,24,067

14,12,072

11,81,978

--

75,700

--

1960-61

7,34,235

10,10,033

13,36,460

--

1,05,250

--

1961-62

10,23,050

11,20,124

6,60,456

--

1,05,350

9. Total loans repaid during the year

1952-53

58,885

1,94,040

5,55,890

--

--

--

1953-54

2,38,013

4,47,341

22,19,788

--

--

--

1954-55

1,98,159

4,43,753

8,26,555

--

--

--

1955-56

2,67,951

1,23,292

4,07,273

--

--

--

1956-57

4,96,041

12,62,546

15,38,461

--

--

--

1957-58

3,32,645

7,54,570

8,89,273

--

--

--

1958-59

2,88,820

2.13,452

6,69.058

--

--

--

1959-60

50,193

56,391

2,06,726

--

--

--

1960-61

4,57,623

4,93,089

6,96,335

--

22,968

--

1961-62

65,431

1,22,356

1,56,797

--

7,074

10. Total loans outstanding

1952-53

5,36,867

10,64,550

20,28,848

--

--

--

1953-54

5,33,573

13,37,072

22,31,109

--

--

--

1954-55

7,30,039

19,39,621

27,74,637

--

--

--

1955-56

25,19,677

9,10,269

39,28,161

--

--

--

1956-57

4,41,863

15,76,230

30,26,504

--

--

--

1957-58

5,29,933

9,57,301

38,97,462

--

--

--

1958-59

5,19,237

10,23,203

44,38,519

--

--

--

1959-60

10,37,049

23,22,193

25,80,306

--

75,700

--

1960-61

12,34,567

23,95,435

31,45,888

--

1,57,982

--

1961-62

23,45,678

42,34,088

64,16,045

--

2,54,485

TABLE No. 16

FINANCIAL ASSISTANCE TO AGRICULTURE

(CLASSIFIED ACCORDING TO PURPOSE)

Purpose for which financial assistance is sanctioned

Year

Loans under Land Improve-ment Loans Act, 1883

Loans under Agricul-turists' Loans Act, 1884

Financial assistance under Grow More Food Campaign

Loans

Cash Subsidies

(1)

(2)

(3)

(4)

(5)

(6)

   

Rs.

Rs.

Rs.

Rs.

(1) For current farm ex-

--

--

--

--

--

penditure-

--

--

--

--

--

(a) Seed

1952-53

--

2,17,816

3,20,105

--

--

1953-54

--

2,70,135

4,96,232

--

--

1954-55

--

2,13,654

4,04,096

--

--

1955-56

--

97,467

5,27,951

--

--

1956-57

--

99,362

1,24,089

--

--

1957-58

--

1,47,512

4,95,294

--

--

1958-59

--

1,56,417

4,14,388

--

--

1959-60

--

3,53,018

2,31,252

--

--

1960-61

--

2,04,024

4,35,687

--

--

1961-62

--

2,43,584

2,67,269

--

(b) Fodder

1952-53

--

--

--

--

--

1953-54

--

--

--

--

--

1954-55

--

--

--

--

--

1955-56

--

--

--

--

--

1956-57

--

--

--

--

--

1957-58

--

--

--

--

--

1958-59

--

--

--

--

--

1959-60

--

20,543

--

--

--

1960-61

--

--

--

--

--

1961-62

--

--

--

--

(c) Manure

1952-53

--

--

2,34,567

--

--

1953-54

--

--

3,45,678

--

--

1954-55

--

--

2,25,635

--

--

1955-56

--

--

3,59,846

--

--

1956-57

--

--

87,315

--

--

1957-58

--

--

3,51,437

--

--

1958-59

--

--

2,32,927

--

--

1959-60

--

--

2,04,826

--

--

1960-61

--

1,45,300

--

--

--

1961-62

--

1,17,500

--

--

(d) Farm implements

1952-5-3

--

--

2,17,250

--

--

1953-54

--

--

3,20,000

--

--

1954-55

--

--

1,55,000

--

--

1955-56

--

--

15,500

--

--

1956-57

--

--

2,03,000

--

--

1957-58

--

--

62,000

--

--

1958-59

--

--

2,15,000

--

--

1959-60

--

--

--

--

--

1960-61

--

--

--

--

--

1961-62

--

2,09,118

--

--

(2) Purchase of draught

1952-53

--

3,12,170

--

--

animals.

1953-54

--

3,87,450

--

--

--

1954-55

--

6,37,450

--

--

--

1955-56

--

1,42,450

--

--

--

1956-57

--

1,28,300

--

--

--

1957-58

--

2,38,700

--

--

--

1958-59

--

2,27,590

--

--

--

1959-60

--

5,28,300

--

--

--

1960-61

--

2,66,960

--

--

--

1961-62

--

2,83,990

--

--

Purpose for which financial assistance is sanctioned

Year

Loans under Land Improvement Loans Act, 1883

Loans under Agriculturists' Loans Act, 1884

Financial assistance under Grow More Food Campaign

Loans

Cash Subsidies

(1)

(2)

(3)

(4)

(5)

(6)

--

--

Rs.

Rs.

Rs.

Rs.

(3) Well digging and

1952-53

l,30,170

--

3,45,900

--

other irrigation pro-

1953-54

37,600

--

6,80,400

--

jects.

1954-55

1,24,200

--

6,10,500

--

--

1955-56

1,37,500

--

5,18,000

--

--

1956-57

--

--

4,00,000

--

--

1957-58

--

--

7,10,500

--

--

1958-59

--

--

5,00,800

--

--

1959-60

--

--

5,30,900

--

--

1960-61

--

--

4,63,400

--

--

1961-62

--

--

02,550

--

(4) Land improvement

1952-53

3,13,18

--

--

--

--

1953-54

1,97,395

--

--

--

--

1954-55

2,75,424

--

--

--

--

1955-56

7,52,365

--

--

--

--

1956-57

27,630

--

--

--

--

1957-58

64,175

--

--

--

--

1958-59

79,538

--

--

--

--

1959-60

5,24,060

--

--

--

--

1960-61

7,34,237

--

--

--

--

1961-62

10,23,055 0

--

--

--

(5) Consumption

--

--

--

--

--

(6) Other purposes

1952-53

--

1,23,462

--

--

--

1953-54

--

92,482

--

--

I Weedings.

1954-55

--

1,95,198

--

--

--

1955-56

--

90,358

--

--

--

1956-57

--

91,437

--

--

--

1957-58

--

1,23,964

--

--

--

1958-59

--

75,943

--

--

--

1959-60

--

2,39,811

--

--

--

1960-61

--

1,35,149

--

--

--

1961-62

--

1,20,432

--

--

II Construction and re-

1959-60

--

2,70,400

--

--

pairs of houses.

1960-61

--

2,58,600

--

--

(Flood affected).

1961-62

--

1,45,500

--

--

III Horticultural Deve-

1960-61

--

--

3,37,373

--

lopment Scheme.

1961-62

--

--

1,87,450

--

IV Construction and

1959-60

--

--

--

--

repairs of houses

1960-61

--

--

--

--

under NAL Act.

1961-62

--

--

--

--

V Loans to persons

1960-61

--

--

--

--

whose horses died of

--

--

--

--

--

South African Horse

--

--

--

--

--

Sickness under NAL Act.

--

--

--

--

--

TABLE No. 17

FINANCIAL ASSISTANCE TO AGRICULTURE, AMRAVATI DISTRICT

Time-lag between date of application and date of sanction

Number of applications

Amount applied for

Amount sanctioned

(1)

(2)

(3)

(4)

--

--

Rs.

Rs.

Up to 2 months

Nil

Nil

Nil

2-3 months 1952-53

1,775

7,95,350

6,65,794

1953-54

3,325

10,63,334

8,98,207

1954-55

3,561

11,46,584

10,00,386

1955-56

2,258

10,49,668

9,26,978

1956-57

2,355

3,90,668

3,24,546

1957-58

1,463

8,95,334

7,78,195

1958-59

1,215

7,23,668

5,83,198

1959-60

2,834

8,95,000

7,98,455

1960-61

2,560

9,88,500

7,96,496

1961-62

2,315

8,75,000

7,27,245

3-4 months 1952-53

1,184

5,30,234

4,43,862

1953-54

2,194

7,08,890

5,98,804

1954-55

2,374

7,64,390

6,66,924

1955-56

1,472

6,99,778

6,17,986

1956-57

1,570

2,60,444

2,16,364

1957-58

974

5,96,890

5,18,798

1958-59

810

4,82,444

3,88,465

1959-60

2,833

8,96,333

7,98,454

1960-61

2,557

9,58,500

7,56,494

1961-62

2,200

7,08,500

6,31,735

4-5 months 1952-53

2,050

10,00,000

8,50,000

1953-54

4,000

13,60,000

11,60,000

1954-55

4,500

15,00,000

13,20,000

1955-56

2,400

13,00,000

12,00,000

1956-57

3,000

5,00,000

4,20,000

1957-58

1,000

11,00,000

10,00,000

1958-59

1,200

9,00,000

7,26,000

1959-60

4,439

15,12,667

14,11,008

1960-61

4,000

18,57,000

15,20,500

1961-62

4,200

19,00,000

14,65,000

5-6 months 1952-53

314

60,466

37,725

1953-54

386

57,776

37,610

1954-55

244

28,776

13,848

1955-56

544

99,554

35,968

1956-57

138

20,888

12,728

1957-58

948

93,776

37,592

1958-59

418

64,888

50,930

1959-60

1,227

2,85,000

1,85,900

1960-61

1,114

1,50,000

1,12,488

1961-62

542

1,17,000

85,000

6 months or more Nil

Nil

Nil

Nil

TABLE No. 18

FINANCIAL ASSISTANCE TO AGRICULTURE, AMRAVATI DISTRICT

Time-lag between date of sanction and date of disbursement

Number of applications

Amount sanctioned

Amount disbursed

(1)

(2)

(3)

(4)

 

--

Rs.

Rs.

Up to 2 months

Nil

Nil

Nil

2-3 months 1952-53

1,775

6,65,794

6,65,794

1953-54

3,325

8,98,207

8,98,207

1954-55

3,561

10,00,386

10,00 386

1955-56

2,258

9,26,978

9 26,978

1956-57

2,355

3,24,546

3,24,546

1957-58

1,463

7,78,195

7,78,195

1958-59

1,215

5,83,198

5,83,198

1959-60

2,834

7,98,455

7,98,455

1960-61

2,560

7,96,496

7,96,496

1961-62

2,315

7,27,245

7,27,245

3-4 months 1952-53

1,184

4,43,862

4,43,862

1953-54

2,194

5,98,804

5,98,804

1954-55

2,374

6,66,924

6,66,924

1955-56

1,472

6,17,986

6,17,986

1956-57

1,570

2,16,364

2,16,364

1957-58

974

5,18,708

5,18,798

1958-59

810

3,88,465

3,88,465

1959-60

2,833

7,98,454

7,98,454

1960-61

2,557

7,56,494

7,56,494

1961-62

2,200

6,31,735

6,31,735

4-5 months 1952-53

2,050

8,50,000

8,50,000

1953-54

4,000

11,60,000

11,60,000

1954-55

4,500

13,20,000

13,20,000

1955-56

2,400

12,00,000

12,00,000

1956-57

3,000

4,20,000

4,20,000

1957-58

1,000

10,00,000

10,00,000

1958-59

1,200

7,26,000

7,26,000

1959-60

4,439

14,11,008

14,11,008

1960-61

4,000

15,20,500

15,20,500

1961-62

4,200

14,65,000

14,65,000

5-6 months 1952-53

314

37,725

37,725

1953-54

386

37,610

37,610

1954-55

244

13,848

13,848

1955-56

544

35,968

35,968

1956-57

138

12,728

12,728

1957-58

948

37,592

37,592

1958-59

418

50.930

50,930

1959-60

1,227

1,85,900

1,85,900

1960-61

1,114

1,12,488

1,12,488

1961-62

542

85,000

85,000

6 months or more

Nil

Nil

Nil

TABLE No. 19

FINANCIAL ASSISTANCE TO AGRICULTURE, AMRAVATI DISTRICT

Duration of Loans

Year

No. of applications

Amount

(1)

(2)

(3)

(4)

     

Rs.

(1) Loss than 3 months

Nil

Nil

Nil

(2) 3 to 6 months

Nil

Nil

Nil

(3) 6 to 9 months

Nil

Nil

Nil

(4) 9 to 12 months

1952-53

662

4,42,959

1953-54

1,392

6,74,912

1954-55

1,226

7,38,824

1955-56

897

5,00,290

1956-57

1,154

2,63,101

1957-58

705

6,10,119

1958-59

484

4,55,847

1959-60

1,174

7,66,190

1960-61

966

6,70,794

1961-62

136

5,38,490

(5) 1 to 2 years

1952-53

1,667

3,65,650

1953-54

3,241

3,83,376

1954-55

3,504

6,74,076

1955-56

1,907

3,66,529

1956-57

1,791

64,370

1957-58

1,177

1,26,410

1958-59

1,061

1,01,642

1959-60

3,073

390,874

1960-61

2,463

3,92,524

1961-62

2,066

4,27,766

(6) 2 to 3 years

1952-53

1,669

3,65,768

1953-54

3,722

2,80,500

1954-55

4,270

3,55,000

1955-56

2,530

5,50,375

1956-57

2,836

1,67,700

1957-58

2,100

2,69,100

1958-59

1,550

2,71,500

1959-60

4,878

9,50,353

1960-61

4,500

10,00,575

1961-62

3,900

12,45,230

(7) 3 to 4 years

1952-53

1,165

3,72,717

1953-54

1,260

1,53,333

1954-55

1,384

2,13,263

1955-56

1,211

2,63,538

1956-57

1,067

23,460

1957-58

303

1,29,956

1958-59

458

20,606

1959-60

1,151

2,05,450

1960-61

850

16,835

1961-62

702

1,02,144

(8) 4 to 5 years

1952-53

72

2,15,136

1953-54

150

7,50,000

1954-55

135

4,19,975

1955-56

109

4,75,200

1956-57

85

1,05,000

1957-58

30

5,00,000

1958-59

30

3,00,000

1959-60

120

3,75,250

1960-61

125

3,00,000

1961-62

175

1,35,000

TABLE No. 19- con t.

Duration of Loans

Year

No. of applications

Amount

(1)

(2)

(3)

(4)

     

Rs.

(9) 5 years and above

1952-53

90

2,35,150

 

1953-54

140

4,25,500

 

1954-55

160

6,00,000

 

1955-56

120

6,25,000

 

1956-57

130

3,50,000

 

1957-58

70

7,00,000

 

1958-59

60

6,00,000

 

1959-60

937

5,05,700

 

1960-61

1,327

8,05,250

 

1961-62

1,328

4.60,350

(10) Those who have not stated the duration.

Nil

Nil

Nil

 

TABLE No. 20

 Financial Assistance to Agriculture, Amravati District

Reasons for rejection

Year

No. of applications

Amount

(1)

(2)

(3)

(4)

  

Rs.

(1) Lack of security or adequate

security.

1952-53

435

98,700

1953-54

762

35,675

1954-55

934

85,250

1955-56

1,035

94,250

1956-57

317

53,000

1957-58

215

1,75,000

1958-59

228

1,45,750

1959-60

267

43,000

1960-61

134

1,15,250

1961-62

161

96,700

(2) Purpose of loan not approved

Nil

Nil

Nil

(3) Old dues to Government

 

1952-53

3,906

2,09,500

1953-54

1,118

2,67,825

1954-55

4,053

2.24,000

1955-56

2,050

2,05,150

1956-57

2,805

1,50,900

1957-58

277

2,05,000

1958-59

1,390

3,19,450

1959-60

1,317

4,10,000

1960-61

507

4,20,250

1961-62

900

4,00,000

(4) Miscellaneous

Nil

Nil

Nil

The foregoing tables reveal that though the number of applications received by the Government does not show any appreciable increase over a decade from 1952-53 to 1962-63, the demand for loans by the agriculturists has increased considerably except for a short period from 1956-57 to 1958-59. The increase was more appreciable especially after 1959-60, when the sums disbursed under both the Acts were Rs. 10,23,050 and Rs. 11,20,124, respectively. The amount spent under the Grow More Food schemes, in much the same way, increased to Rs. 9,74.500 in 1961-62 although during the previous years there was no uniformity of trend, either for increase or for decrease. Secondly, the total amount sanctioned by the Government was far less than that demanded. For example, in 1961-62, while amounts demanded by the applicants totalled Rs. 15,58,500 under the Land Improvement Loans Act of 1883 and Rs. 16,44,500 under the Agriculturists' Loans Act of 1884, the amounts sanctioned and disbursed under these Acts were Rs. 10,23,050 and Rs. 11,20,124, respectively. One of the reasons why the Government did not adequately meet with the demand was that loans were not either repaid in time or repaid in full. The figure of loans outstanding especially after 1958-59, is an evidence in point. The total dues were greater under the Agriculturists' Loans Act than under the Land Improvement Loans Act, and greater under the Grow More Food scheme than under the Land Improvement Loans Act. It will also be seen from the above tables that the loans under Land Improvement Loans Act were given mainly for carrying out improvements on land throughout this period except in 1952-53 and 1954-55 when part of these loans were also granted for digging wells and other irrigation projects. Loans under Agriculturists' Loans Act, on the other hand, were given for various purposes specified in the tables, such as current farm expenditure including expenditure for securing fodder and manure and for purchasing of draught animals. In the same way, financial assistance under Grow More Food campaign was extended to agriculturists for procurement of seeds, manure, and farm implements, and for well digging and other irrigation projects. Some loans under this scheme were also given for horticultural development in 1960-61 and 1961-62.

During this period (from 1952-53 to 1962-63) loans under Project Areas were given only from 1959-60 to 1961-62. They were given under the Non-agricultural Loans Act for construction and repair of houses and also as a relief to those whose horses died of the South African Horse Sickness.

It is necessary not only to make adequate grants of tagai but also to make them in time. In this district the actual disbursement of the loans was started three months after they were sanctioned. Although the interval between the date of application and the date of sanction or between the date of sanction and the date of disbursement was not short, there was no unusual delay that could adversely affect agricultural operations. Another significant feature of the grant of tagai loans was that the bulk of them represented short-term loans having a duration of less than five years. The large amounts of loans were given for periods shorter than a year, and more than half the amount of the total loans was given for a period less than four years.

The two major grounds of rejection of applications for loans were (i) lack of security or adequate security, and (ii) old dues to Government. On the score of the former as many as 4,488 applications involving an amount of Rs. 9,42,575 were rejected, while on the latter 19,323 applications involving an amount of Rs. 28,12,075 were rejected.

Tagai loans for the purchase of seed and weeding operations and for Grow More Food under the Agriculturists' Loans Act, are advanced against collateral security, jointly or severally. But for loans for ordinary and Grow More Food requirements under the Land Improvement Loans Act both security of land and collateral security are necessary. Generally 75 per cent of the loans are advanced against security of land and 25 per cent are advanced against collateral security. The ratio of the value of security to the total amounts of loans advanced is 2:1.

Formerly the rate of interest on loans distributed on ordinary tagai advance under Agriculturists' Loans Act and the Land Improvement Loans Act was Rs. 7.81 per hundred per annum. From August 1958 the rate of interest on tagai loans under these Acts was reduced to Rs. 5.50 per hundred per annum.

Similarly, different rates of interest were charged for loans under Grow More Food scheme. Thus for loans under Agriculturists' Loans Act the rate charged was Rs. 4.66 per hundred per annum but for loans under Land Improvement Loans Act the rate of interest was Rs. 7.81 per hundred per annum. But from 1st April 1960 interest on all loans under the Land Improvement Loans Act or the Grow More Food scheme is charged at the rate of Rs. 4.50 per hundred per annum or in default at the penal rate of Rs. 6.00 per hundred per annum.

TOP