The speech at the conference in Pune by the respected Deputy Governor Swaminathan J of the Reserve Bank of India emphasised the importance of promoting sustainable agriculture and ensuring adequate funding. 

The Deputy Governor outlined five proposals to tackle the financing of sustainable agriculture and motivate active promotion. These proposals aim to address lending disparities in agriculture, improve credit accessibility, and incorporate value-chain financing. 

The lending disparities in agriculture across different regions continue to be a cause for concern, even though institutional credit to the sector has reached its peak. The speech delivered by the central banker at the conference was published on the RBI’s website on Monday.

Institutional credit to agriculture has surged to a record high of Rs 25.10 lakh crore from 2023-24 through approximately 7.4 crore active Kisan Credit Cards, which are crucial for delivering short-term credit.

The speech highlighted the surge in institutional credit to agriculture and the significance of collectives such as Farmer-Producer Organisations (FPOs) in promoting sustainable farming technologies. 

The Deputy Governor emphasised the significance of collectives such as Farmer-Producer Organisations, funding for value chains and warehouses, and technology adoption, among other aspects.

FPOs, have become vital for addressing the specific challenges small and marginal farmers face. The Deputy Governor mentioned that their growth has been substantial, with over 24,000 Farmer Producer Companies (FPCs) established since March 31, 2023.

Additionally, RBI regulations facilitate funding for FPOs engaged in agriculture and related activities, classifying their loans as priority sector lending. Sustainable agriculture involves adopting methods that safeguard the environment, reduce dependence on chemical inputs, and use water and land efficiently.

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