ISLAMABAD, June 6: Agriculture credit provided by various financial institutions amounted to approximately Rs37.62 billion during the first nine months of the current financial year as compared to Rs35 billion in the same period last fiscal, showing an increase of 7.5 per cent.

The credit disbursed by Zarai Taraqiati Bank Limited (ZTBL), commercial and cooperative banks registered an increase of Rs2.62 billion, according to the statistics published in the Economic Survey report.

Out of this, 51.43 per cent (Rs19.35 billion) was disbursed by ZTBL in the current financial year. This is 6.17 per cent below its share in total farm credit for the period July-March 2001-02 when its credit to farmers totalled Rs20.16 billion.

Thus the institutions other than ZTBL were able to raise their share in total agricultural credit from nearly 43pc in 2001-02 to nearly 48pc in the current fiscal.

During the period under review, commercial banks disbursed Rs14.36 billion, exceeding previous year’s payments by over Rs3 billion. Similarly, cooperatives and domestic private banks increased their loans to farmers to Rs3.21 billion and Rs679.3 million, respectively.

The Economic Survey also provides figures for previous five years. During this period, 1997-98 was the only year when disbursements were exceeded by those for the nine-month period under review. During the whole of 1997-98, disbursements had totalled Rs33.39bn (including Rs22.35 billion by former Agricultural Development Bank now ZTBL).

Agricultural loans totalled Rs42.85bn in 1998-99, Rs39.69 billion in 1999-2000, Rs44.79 billion in 2000-01, and Rs52.45 billion in 2001-02. During this period, the highest disbursement (Rs30.17 billion) by ZTBL was recorded in 1998-99.

According to the Survey, ZTBL disbursed Rs16.2bn to small farmers having up to 25 acres of land during the first nine months of 2002-03. This is 83.8pc of total agricultural credit provided by this bank.

An amount of Rs4.07 billion had been allocated in the current financial year for priority items such as enhancement and improvement of irrigation facilities, various varieties of orchards, on-farm godowns/storages, production loans for improved seeds, horticulture and micro credit, etc. During 2002-03 (July- March), loans of Rs1.480 billion were disbursed under this head.

Under one-window operation started in 1997, ZTBL disbursed loans amounting to Rs2.56 billion during July-March 2002-03.

Agricultural credit is also provided under a revolving finance scheme for input requirements for both Kharif and Rabi crops. This limit remains operative for a period of three years without any fresh procedural requirement and documentation.

Under this scheme, nearly Rs7.39 billion were disbursed during first nine months of 2002-03. This constituted 48 per cent of total production loan — Rs15.37 billion.