BANKING TRADE AND COMMERCE

FINANCIAL ASSISTANCE TO AGRICULTURE

Even though circumstances have changed since the inception of the Five-Year Plans it cannot be denied that the Indian farmer does not enjoy a comfortable position in the overall economy of the country. He is more poor than backward. The needs of the agriculturist require to be tackled in the direction of providing him with monetary assistance that may enable him to improve the condition of agriculture and thereby improve his economic status. This was realised long back but adequate steps were not taken to give relief to the agriculturist except during famine years when agriculturists were given certain concessions in land-tax or doles.

Before the advent of the British rule in India, some financial assistance was provided to the agriculturist under the system of Tagai to tide over years of famine or drought. The system was gradually extended to embrace normal years. Under the British administration a number of acts were passed between 1871 and 1879 authorising the Government to grant tagai loans to needy agriculturists. Substantial financial assistance, however, was granted only after the Land Improvement Loans Act of 1883 and the Agriculturists Loans Act of 1884 came in force. The former Act is broadly concerned with long-term loans while the latter deals with short-term accommodation.

Land Improvement Loans 'Act 1883.

Loans under this Act are granted to cultivators for works of improvement on land such as construction of wells and tanks, preparation of land for irrigation, drainage or reclamation or its protection from floods or erosion. The Collector, Prant Officers, and Mamlatdars are authorised under this Act to grant loans, each to a specific extent and to charge on all loans an interest at the rate of 8.50 per cent, i.e., 16 pies (i.e., 8 paise) per rupee per annum. Since the introduction of the Community Development Programme in the country, the Block Development Officer became the chief dispenser of tagai loans to the agriculturist. The loan is given when the grantor is satisfied as to the security with a margin of safety. When the value of the applicant's interest in the land to be improved clearly covers the amount of the loan with interest as also the cost which is likely to be incurred in making the same, collateral security is not required. Generally immovable property is demanded as security against loan if the amount advanced is large. Personal security may be accepted, even that of one person, provided that his solvency is assured.

Agriculturists' Loans Act, 1884.

Under this Act loans may be granted to holders of arable lands For (a) purchase of seed, pesticides, fodder, agricultural stock, agricultural implements or cattle, etc., (b) rebuilding houses destroyed by fire, flood or any other calamity, (c) maintenance of cultivators while engaged in sowing or tilling their lands prior to the next crop, (d) any other purpose not specified in the Land Improvement Loans Act of 1883, connected with agricultural objects. Collectors, Prant Officers, Tahsildars and Block Development Officers are authorised to grant loans upto specified limits. Loans above Rs. 2,500 have to be referred to the government for approval. Interest at 8½ per cent i.e., 16 pies (i.e., 8 paise) per rupee per annum is charged on all loans, but Government on special recommendations of the collector may in particular cases authorised a reduced rate or charge no interest at all. Terms as regards security are the same as under the Land Improvement Loans Act of 1883.

Besides these Acts, tagai loans are also given under the Grow More Food campaign and other projects launched by the Government to step up production. The following tables give in detail the amount of tagai loans granted to the cultivators for different purposes. They also indicate the total period involved in the operation of distributing the loans since they were sanctioned by the Government.

The following tables give the tagai advances and outstanding balances under the Land Improvement Loans Act of 1883 and the Agriculturists' Loans Act, 1884, from 1893-94 to 1902-03 and from 1911-12 to 1921-22.

TABLE No. 15

TAGAI ADVANCES, COLLECTIONS AND OUTSTANDING BALANCES IN KHANDESH DISTRICT (1893-94-1902-03)*

*Adopted from the Gazetteer (Supplementary) of the Bombay Presidency Vol. XII-B. Khandesh and Mehwa's Estates, 1905-P. 17.

TABLE No. 16

TAGAI ADVANCES, COLLECTIONS AND OUTSTANDING BALANCES

IN WEST KHANDESH DISTRICT FROM 1911-12 TO 1921-22

*Gazetteer (Supplementary) of Bombay Presidency, Vol. XII-B Khandesh (East and West) and Mehwa's Estates, 1926-P. 72.

TABLE No. 17

ADVANCES OF TAGAI FOR VARIOUS PURPOSES IN DHULIA DISTRICT

FROM 1946-47 TO 1955-56

TABLE No. 18

LOAN'S UNDER LAND IMPROVEMENT LOANS ACT, 1883 IN DHULIA DISTRICT

TABLE No. 18 contd.

TABLE No. 19

LOANS UNDER AGRICULTURISTS' LOANS ACT, 1884, IN DHULIA. DISTRICT

TABLE No. 19 contd.

TABLE No. 20

FINANCIAL ASSISTANCE UNDER GROW MORE FOOD CAMPAIGN IN DHULIA DISTRICT

 TABLE No. 20 contd.

TABLE No. 21

DURATION OF THE LOANS, DISTRICT DHULIA

TABLE No. 21 contd.

TABLE No. 22

GOVERNMENT FINANCE FOR AGRICULTURE CLASSIFIED ACCORDING TO PURPOSES (FROM 1957-58 TO 1963-64)