KARACHI, Sept 29: Credit limit for major crops has been increased by 70 to 100 per cent to support farmers against costlier inputs, plagued by the spiraling inflation.

“The State Bank has enhanced the indicative per acre credit limit for major and minor crops, orchards and forestry by an average 70 per cent,” said a release issued by the State Bank on Monday.

SBP Governor Dr Shamshad Akhtar said the enhancement in credit limit has been made on the basis of current prices of agriculture inputs, like seed, fertiliser, pesticides, fuel, electricity, etc.

The decision has been taken in line with government’s priority to develop agriculture sector and to ensure availability of adequate and timely bank credit to the farming community.

According to the SBP, the farmers will get production loans for major crops, like rice, wheat, cotton and sugarcane at a rate of Rs19,000, Rs16,000, Rs21,000 and Rs30,000 per acre against the previous limits of Rs9,000, Rs8,000, Rs11,000 and Rs18,000 respectively.

The limits of other crops, like potato, maize, sugar beat, tomato, chilly, rapeseed, sunflower, canola, gram, moong, masoor, groundnut, flowers, etc. have also been enhanced from a minimum of Rs3,000 to Rs16,000 per acre depending upon the cost of inputs.

With a view to facilitate farmers in obtaining loans for growing orchards and agro-forestry, the year-wise per acre indicative credit limit for growing orchards (mango, citrus, apple, banana, coconut, dates, guava, etc.) and agro-forestry, (acacia, sheesham, bamboo, etc.) have also been provided.

The State Bank issues per acre indicative credit limits to banks for major and minor crops, orchards and forestry. The pervious such limits were issued in 2006.

Since then, the economy has undergone major transformation and prices of agricultural inputs, particularly of fuel, fertiliser, pesticides, seeds, gas, labour, etc. have increased manifold affecting the production cost of farmers.

The enhanced per acre credit limits are indicative in nature and banks can finance lower or higher than the limits based on actual credit requirements of farmers, market conditions and prices of farm inputs.

The SBP said that to meet financial needs of the farming community, the SBP governor had constituted a committee of experts which reviewed all necessary information, including current market prices of inputs for various crops, orchards, etc., and recommended for an upward revision of the credit limits for meeting the high input cost as well as achieving the national agriculture growth targets.