Relevant extract of the list of direct agricultural advances

Relevant extract of the list of direct agricultural advances from the Master Circular on lending to priority sector

RPCD. PLAN. BC. 12/04.09.01/2001-02 dated 1 August 2001

1.1 Direct finance to farmers for agricultural purposes

1.1.1 Short-term loans for raising crops; i.e., for crop loans. In addition, advances up to Rs. 1 lakh to farmers against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 6 months, where the farmers were given crop loans for raising the produce, provided the borrowers draw credit from one bank.

1.1.2 Medium and long-term loans (Provided directly to farmers for financing production and development needs).

1. Purchase of agricultural implements and machinery
   1. Purchase of agricultural implements - Iron ploughs, harrows, hose, land-levellers, bundformers, hand tools, sprayers, dusters, hay-press, sugarcane crushers, thresher machines, etc.
   2. Purchase of farm machinery - Tractors, trailers, power tillers, tractor accessories viz., disc ploughs, etc.
   3. Purchase of trucks, mini-trucks, jeeps, pick-up vans, bullock carts and other transport equipment, etc. to assist the transport of agricultural inputs and farm products.
   4. Transport of agricultural inputs and farm products.
   5. Purchase of plough animals.
2. Development of irrigation potential through –
   1. Construction of shallow and deep tube wells, tanks, higher etc., and purchase of drilling units.
   2. Constructing, deepening clearing of surface wells, boring of wells, electrification of wells, purchase of oil engines and installation of electric motor and pumps.
   3. Purchase and installation of turbine pumps, construction of field channels (open as well as underground), etc.
   4. Construction of lift irrigation project.
   5. Installation of sprinkler irrigation system.
   6. Purchase of generator sets for energisation of pumpsets used for agricultural purposes.
3. Reclamation and land development schemes
   Bunding of farm lands, levelling of land, terracing, conversion of dry paddy lands into wet irrigable paddy lands, wasteland development, development of farm drainage, reclamation of soil lands and prevention of salinisation, reclamation of ravine lands, purchase of bulldozers, etc.
4. Construction of farm buildings and structures, etc.
   Bullock sheds, implement sheds, tractor and truck sheds, farm stores, etc.
5. Construction and running of storage facilities
   Construction and running of warehouses, godowns, silos and loans granted to farmer for establishing cold storages used for storing own produce.
6. Production and processing of hybrid seeds for crops.
7. Payment of irrigation charges, etc.
   Charges for hired water from wells and tube wells, canal water charges, maintenance and upkeep of oil engines and electric motors, payment of labour charges, electricity charges, marketing charges, service charges to Customs Service Units, payment of development cess, etc.
8. Other types of direct finance to farmers
   1. Short-term loans
      To traditional/non-traditional plantations and horticulture.
   2. Medium and long-term loans
      Development loans to all plantations, horticulture, forestry and wasteland.