India Today; Kumar Vikram; New Delhi, October 23, 2010
And you thought Delhi is a concrete jungle. According to National Bank of Agriculture and Rural Development (NABARD) data on loans disbursed by nationalised and cooperative banks, the city has more farmers doing more agriculture than Madhya Pradesh, Uttar Pradesh, Karnataka and West Bengal.
Also, its "farmers" were allotted Rs 22,077 crore in agricultural loans in 2009 alone at a mere five per cent rate of interest.
Delhi's loan disbursal amount is the second highest in the country after agriculture-rich Punjab, whose farmers borrowed Rs 27,000 crore last year. Uttar Pradesh, another agriculture-dependent state, borrowed Rs 21,100 crore, while Haryana and Madhya Pradesh farmers respectively received Rs 14,915 crore and Rs 13,430 crore.
Delhi's high rate of disbursal is inexplicable considering the city has a mere 39,000 hectares of cropped land while Punjab has 78.61 lakh hectares. Of the 39,000 hectares of cropped land, Delhi's records show, only 26,785 hectares is the net area sown; Punjab has 200 times as much.
State government officials said Delhi's agricultural produce is so negligible that it is not even accounted for when nationwide statistics are collated.
Nevertheless, hundreds of Delhi's residents have taken loans at cheap rates citing agriculture as their profession. Government officials said these borrowers are not farmers - they are the city's elite who have massive farmhouses.
A state rural development department official said that the so-called agricultural land is mainly in farmhouses located at the outskirts of the city. "These are owned by wealthy businessmen and politicians," the official said. "The loan disbursal amount in Delhi is high because these farmhouse owners acquire loans citing agriculture as their profession. But these are only used for residential purposes."
He added that the only agricultural activity that they indulge in is the planting of vegetables and flowers inside the farmhouses. "The bank official sees this activity and a loan is given to the owner at five per cent interest rate," he said.
Bijender Singh, chairman, Delhi State Co-operative Society (DSCS) said farmhouse owners are, in fact, eligible to avail of agricultural loans. "If they are involved in any kind of agricultural activity at their farmhouses, they can avail of agricultural loans." A rural development department official said these farmhouse owners also take loans as Kisan Credit Cards, that is to say Rs 15,000 per hectare. "The process is easy," he said. "A loan of up to Rs 1.5 lakh per every 10 hectares is given without presenting any surety.
In Delhi, the leading bank for agricultural loans is State Bank of India." He added that the city does produce some vegetables, but these are cultivated alongside the Yamuna river and the outer parts of the city. "But no way can our produce be compared with that of UP, MP or Punjab." An official from the Delhi Agricultural Marketing Board said: "We receive hardly any city produce.
Some farming does take place alongside the Yamuna and in the outskirts of the city, but these are primarily seasonal vegetables." Ved Pal, an RTI activist and a resident of Aya Nagar said agriculture in a city like Delhi is never a profitable venture. "Land has become expensive in the city," he said. "Over a period of time, the farmers sell their land to businessmen and builders. Unauthorised colonies have developed on previously agricultural land in the last 10- 15 years."
He is not alone in expressing this fear. An official of the agricultural directorate of the Delhi government said: "Getting illegal loans in the name of farming is quite rampant in Delhi. This land may be categorised as "agricultural", but the fact is that it has become residences of billionaires." Not just that, agricultural loans below inflation rates are often written off by the government if the borrower is unable to pay on time. "This is one of the reasons such loans are being availed by all who can come under the category of 'farmers'," the official said.
He added: "Agricultural loans are available for various farming purposes. Farmers may apply for loans to buy raw material for the cultivation of foodgrains crop as well as for horticulture, aquaculture, animal husbandry, floriculture and sericulture businesses."
How agri loan can be procured
Agricultural loans are available for various purposes. Farmers may apply for loans to buy inputs for the cultivation of foodgrain crops as well as for horticulture, aquaculture, animal husbandry, floriculture and sericulture business
There are also special loans to finance the purchase of agricultural machinery such as tractors, harvesters and trucks. Construction of biogas plants and irrigation systems as well as the purchase of agricultural land may also be financed through special schemes
Kisan Credit Card: Under this, a farmer in Delhi can avail a loan of ` 15,000 per hectare without any surety. The bank will verify his personal and other records before sanctioning the loan
Once issued, a Kisan Credit Card is valid for three years. Depending on the performance of the farmer, the facility can be cancelled, extended or credit limits can be increased.
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