PAU dean on plan panel working group

He said for the formulation of 12th Five Year Plan,the working group would review the flow of credit to agriculture and allied sectors,perform sub-sectoral analysis and recommend measures to ease the flow of credit at reasonable rates of interest throughout the country with special consideration of disadvantaged sections such as small and marginal farmers,women farmers,tenant farmers,oral lessees and landless labourers.

Besides assessing the short term and long term requirement of agricultural credit during the 12th Plan,the thrust would be on to review the contribution and performance of cooperatives towards outreach of credit to agriculture and allied activities and recommend measures,said Sidhu. He added that the working group would study the performance,efficacy and adequacy of risk management policies,strategies and programmes being implemented for the agriculture and allied sectors and recommend the course to be followed for risk management during the 12th Plan as well as how to increase uptake and service levels of micro insurance products.

Sidhu said focus would also be on the issues concerning micro-financing,such as their costs and rates of lending,their contribution in credit outreach,and recommendation of future course of actions.

“The association with the Planning Commission will provide an opportunity to vouchsafe the interest of farmers through technical inputs,” said Sidhu,adding that currently 48 per cent farmers’ indebtedness was from non-institutional sources of finance.