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Deposit Mobilisation Campaign by Co-operative Societies AGRICULTURE AND ALLIED SECTORS

2.152 Deposit Mobilisation campaigns by co-operative credit institutions continued during the year
under report also. The deposit mobilisation by the Co-peratives have shown a decreasing trend over
the years. During the period under review, the co-operatives could mobilize ` 6674 crore as against
the target of ` 5000 crores, while in the previous year it was only ` 5194.36 crores. Year wise target
and achievement is given in Appendix 2.74.

Support by National Cooperative Development Corporation

2.153 NCDC (National Cooperative Development Corporation ) has disbursed a cumulative financial
assistance of ` 5437.99 crore for various cooperative development projects as on 31.3.2014, of
which ` 1354.72 crores is through state government and ` 4083.27 crores is via direct funding.
Also, ` 1317.53 crores comes under long term loan and only ` 37.461 crores come under subsidy.
Types of NCDC Assistance are shown in Appendix 2.75. During the fiscal 2013-14, Kerala stood
3rd in all India standing for disbursement of NCDC’s financial assistance to states. Sanctions and
release of NCDC funds to the state of Kerala for 2013-14 was ` 1041.87 crore and ` 663.22 crores
respectively which comes to the tune of 13.43 per cent of the total sanctions and 12.59 per cent
of the total releases made by the NCDC country wide. Cumulatively 223 cooperatives in Kerala
were benefitted by NCDC funding through State Govt /Direct funding scheme during 2013-14 either
through sanctions/ disbursement of funds. Almost all sectors of Agriculture& allied activities including
short term agriculture credit, marketing of agriculture produce, distribution of fertilisers& inputs,
consumer cooperatives, Processing activities, storage/ go downs, infrastructure creation, service
sector, industrial cooperatives, Labour cooperatives and weaker section programme like Fisheries,
SC/ST etc. were covered by NCDC finance in the state during 2013-14.

2.154 Activity wise and year wise sanction and release of assistance from NCDC are shown in
Appendix 2.76. The Year-Wise amount released by NCDC from 1991-92 to 2012-13 and type of
NCDC assistance are given in Appendix 2.77 & 2.75. The interest rate of NCDC loans ranged from
10.40 percent to 12.5 percent in 2012-13. The interest rate of NCDC loan is referred as one of the
highest rates reported. Reduction in rate seems to be essential to avail more support from NCDC.

Agricultural Finance

2.155 Agricultural credit in India started depicting a growth after bank nationalization and it has been
growing continuously since then. This has resulted in a significant increase in the access of rural
cultivators to institutional credit and the role of informal agencies as credit sources has considerably
declined. Within the institutional sources, Commercial banks dominate the scene by disbursing 72.48
per cent of the agricultural credit in 2013-14 as compared to 71.21 per cent in 2012-13, while the
cooperative banks and RRBs account for 16.21 per cent and 11.31 per cent respectively. In 2013-14,
as against the farm target of ` 700,000 crore, an amount of ` 730,766 crore was disbursed(PE). A
target of ` 8 lakh crore has been set for agriculture credit during 2014-15.

The major policy announcements in the year 2014-15 at the national level include:

• To provide institutional finance to landless farmers, it is proposed to provide finance to 5 lakh
joint farming groups of “ Bhoomi Heen Kisan ” through NABARD .

• Corpus of Rural Infrastructure Development Fund (RIDF) raised by an additional ` 5000 crores
from the target given in the Interim Budget to ` 25000 crores .

• Allocation of ` 5,000 crore provided for the Warehouse Infrastructure Fund.
• “Long Term Rural Credit Fund” to set up for the purpose of providing refinance.

Economic Review 2014