BANKING TRADE AND COMMERCE

FINANCIAL ASSISTANCE TO AGRICULTURE

The problem of rural indebtedness is, perhaps, the most import- ant problem in the agricultural sector of our economy. The Indian agriculturist is born in debt, he lives in debt and he dies in debt also. Owing to his poverty and instability of income he has been always at the mercy of the village money-lender or Savkar who used to squeeze him out completely. For want of financial assistance he could do little to improve the production of his land. It was with a view to helping him out of his plight that the system of Tagai was devised even before the British regime. The British administrators adopted the already existing system and passed a number of Tagai Acts between 1871 and 1879. No active assistance, however, was given till the Land Improvement Loans Act of 1883 and the Agriculturists' Loans Act of 1884 were passed. The former Act is broadly concerned with long-term loans, while the latter deals with a short-term accommodation.

Land Improvement Loans Act of 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, reclaimation of land, enclosures, etc. The Collector, the Prant Officer and the Mamlatdar, are authorised to grant loans up to specified limits bearing an interest of 8½ per cent, i.e., 16 pies per rupee per annum. In some cases the Government may reduce the rate of interest or charge no interest at all in case the loan is given when the granter is satisfied as to the security. Generally immovable property is demanded as security against loans to be advanced.

Agriculturists' Loans Act of 1884.

Loans under this Act may be granted to holders of arable lands for purchase of seed, fodder, agricultural stock or implements. Loans are also granted to hire cattle, to rebuild houses destroyed by calamities, to maintain cultivators while engaged in work on land etc. The rate of interest, the type of security and the terms and conditions of the grant of loans are the same as under the Land Improvement Loans Act of 1883.

The following tabular statement shows the extent of Government assistance under these Acts in Kolaba district.

TABLE No. 14.

TOTAL AMOUNT OF TAGAI LOANS ADVANCED IN KOLABA DISTRICT.

It will be seen from the foregoing table that the total amount of tagai loans has decreased considerably during the last decade although there has been a continuous and an increasing demand for financial assistance from the agriculturists who often try to seek accommodation with the money-lenders. The decrease in the amounts of loans granted may be due to the fact that once the loan is granted it becomes very difficult for the Government to recover it.

TOP