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FINANCE
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STATE AID TO AGRICULTURAL
To prevent an agriculturist from sliding back into his original state
of indebtedness, it is necessary to make him economically solvent.
One measure to achieve this is to provide him with credit adequate in quantity and beneficient in operation. Government assistance to agriculturists in the form of ' Tagai Loans' satisfies their need for credit.
The system of Tagai Loans dates back to the Pie-British period. The British administrators adopted the already existing system and a number of Tagai Acts were passed between 1871 and 1879. No active assistance, however, was rendered till the passing of the Land Improvement Loans Act of 1881 and the Agriculturists Loans Act of 1884. The former act was meant to provide long-term loans while the latter was to accommodate short-term loans.
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, reclamation, enclosures, etc.
The Collector, Prant Officer and Mamlatdar are authorised to grant loans up to specified limits bearing an interest of eight and half per cent, i.e., 16 pies per rupee per annum. In particular cases, however, the Government may reduce the rate of interest or charge no interest at all. The loans are given when the authority concerned is satisfied as to the security and the margin of safety involved therein. Generally immovable property is demanded as security against loans to be advanced.
Agri culturists' 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 and to enable them to hire cattle, to rebuild houses destroyed by calamities, to maintain themselves while engaged in work on land or to achieve some such purpose. The rate of interest, the type of security and the terms and conditions of the grant of loan are the same as under the Land Improvement Loans Act of 1883.
This district is very backward and its poverty is proverbial and there is room for a substantial increase in assistance to the agriculturists. The following tabular statements show the extent of Government assistance under these Acts in Ratnagiri district and bring to notice the actual needs of people for Tagai loans.
TABLE No. 13.
RATNAGIRI DISTRICT—GOVERNMENT FINANCE FOR AGRICULTURE IN THE YEAR 1955-56.
|
Particulars. |
Loan under Land Improvement Act, 1883. |
Loans under Agriculturists Loans Act, 1884. |
Financial Assistance under Grow More Food Campaign. |
Any other loans for the Project Area. |
Financial Assistance by other Government Departments. |
Cash Subsidies. |
Loans. |
Loans. |
Subsi-dies. |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
1. |
Applications pending at the beginning of the year |
11 |
35 |
1 |
-- |
-- |
-- |
-- |
|
2. |
Amount involved in (1) Rs. |
8,480.00 |
6,845.00 |
1,500.00 |
-- |
-- |
-- |
-- |
|
3. |
Number of applications received during the year |
233 |
494 |
360 |
-- |
43 |
32 |
-- |
|
4. |
Total amount applied for by these applicants. Rs. |
1,38,448.00 |
98,545.00 |
38,949.07 |
-- |
36,940.00 |
5,305.00 |
-- |
|
5. |
Number of applications sanctioned |
111 |
255 |
343 |
-- |
38 |
31 |
-- |
|
6. |
Total amount asked for in (5) above. Rs. |
30,746.00 |
51,555.00 |
27,637.12 |
-- |
34,146.00 |
4,905.00 |
-- |
|
7. |
Total amount actually sanctioned. Rs. |
24,250.00 |
42,979.00 |
24,135.68 |
-- |
33,600.00 |
4,15.505 |
-- |
|
8. |
Total amount actually disbursed during the year. Rs. |
22,675.00 |
42,979.00 |
24,135.68 |
-- |
33,600.00 |
4,215.00 |
-- |
|
9. |
Total loans repaid during the year. Rs |
30,863.88 |
15,584.25 |
6,010.88 |
-- |
2,624.87 |
4,109.25 |
-- |
|
10. |
Total loans outstanding. Rs. |
1,19,206.31 |
68,642.15 |
9,513. 93 |
-- |
31,225.13 |
25,245.50 |
-- |
TABLE No. 14
RATNAGIRI DISTRICT—GOVERNMENT FINANCE FOB AGRICULTURE CLASSIFIED ACCORDING
TO PURPOSES IN THE YEAR 1955-56.
|
Purposes for which financial assistance is sanctioned.
|
Loans under Land Improvement Loans Act, 1883. |
Loans under Agriculturists Loans - Act, 1884. |
Financial Assistance under Grow More Food Compaign. |
Any other loans for the Project Area. |
Financial Assistance by other Goveninent Departments. |
|
Cost Subsidios. |
Loans. |
Loans. |
Cash Subsidies. | |
|
2 |
3 |
4 |
5 |
6 |
7 |
8 |
1. |
For Current Farm Expenditure |
1,575.00 |
300.00 |
790.00 |
-- |
-- |
4,215.00 |
-- |
-- |
(a) Seed |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
(b) Fodder |
-- |
-- |
561.44 |
-- |
-- |
-- |
-- |
(c) Manure |
-- |
1,266.0 |
20,635.24 |
-- |
-- |
-- |
-- |
(d) Farm Implements |
-- |
2,225.00 |
2,149.0 |
-- |
-- |
-- |
-- |
2 |
Purchase of Draught Animals |
-- |
32,983.00 |
-- |
-- |
-- |
-- |
-- |
3. |
Well digging and other irrigation projects |
2,750.00 |
-- |
-- |
-- |
-- |
-- |
-- |
4. |
Land Improvement |
18,425.00 |
-- |
-- |
-- |
-- |
-- |
-- |
5. |
Consumption |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
6. |
Other Purposes |
1,500.00 |
0,205.00 |
-- |
-- |
33,600.00 |
-- |
-- |
Grand Total |
24,250.00 |
42,979.00 |
24,135.68 |
-- |
33,600.00 |
4,215.00 |
-- |
TABLE No. 15.
RATNAGIRI DISTRICT—THE TIME LAG BETWEEN THE DATE OF APPLICATION AND THE DATE OF SANCTION IN THE YEAR 1955-56. |
Time lag between date of application and date of sanction. |
No. of applieations. |
Amount applied for. |
Amount sanctioned. | |
1 |
2 |
3 |
4 | |
|
-- |
Rs.nP. |
Rs.nP. | |
On the same day |
57 |
12,871.00 |
6,396.00 | |
Less than one month |
281 |
34,178.50 |
43,663.44 | |
1—2 months |
292 |
47,009.00 |
46,751.24 | |
2—3 „ |
94 |
31,505.00 |
24,669.00 | |
3—4 „ |
16 |
5,200.00 |
2,000.00 | |
4—5 „ |
26 |
11,125.62 |
4,700.00 | |
5—0 „ |
6 |
4,500.00 |
1,000.00 | |
6—7 „ |
-- |
-- |
-- | |
7—8 „ |
1 |
200.00 |
-- | |
Over 8 months |
2 |
2,400.00 |
-- | |
Not ascertainable |
-- |
-- |
-- | |
Total |
778 |
1,48,989.12 |
1,29,179.68 |
TABLE No. 16.
RATNAGIRI DISTRICT—THE TIME LAG BETWEEN THE DATE OF SANCTION AND THE DATE OF DISBURSEMENT IN THE YEAR 1955-56, |
Time lag between date of sanction and date of disbursements. |
No. of applications. |
Amount sanctioned. |
Amount disbursed. | |
1 |
2 |
3 |
4 | |
|
|
Rs.nP. |
Rs.nP. | |
On the same day |
417 |
72,058.94 |
73,133.94 | |
Less than one month |
270 |
46,762.12 |
45,082.12 | |
1—2 months |
68 |
8,358.62 |
7,388.62 | |
2—3 months |
6 |
1,025.00 |
1,025.00 | |
3—4 months |
1 |
350.00 |
350.00 | |
4—5 months |
16 |
625.00 |
625.00 | |
5—6 months |
-- |
-- |
-- | |
6—7 months |
-- |
-- |
-- | |
7—8 months |
-- |
-- |
-- | |
Over 8 months |
-- |
-- |
-- | |
Not ascertainable |
-- |
-- |
-- | |
Total |
778 |
1,29,179.68 |
1,27,604.68 |
TABLE No. 17.
RATNAGIRI DISTRICT—THE TIME LAG BETWEEN THE DATE OF SANCTION AND THE DATE OF DISBURSEMENT IN THE YEAR 1955-56. |
Duration of Loans. |
Number of applications |
Amount. | |
|
|
Rs. | |
Less than three months. |
-- |
-- |
3—6 months |
4 |
251.50 | |
6—9 months |
5 |
1,297.00 | |
9—12 months |
309 |
26,707. 56 | |
1—2 years |
213 |
19,104.62 | |
2—3 years |
136 |
46,334.00 | |
3—4 years |
73 |
15,060.00 | |
4—5 years |
18 |
9,930.00 | |
5 years and above |
20 |
10,495.00 | |
Those who have not stated the duration |
-- |
-- | |
Total |
778 |
1,29,179.68 |
TABLE No. 18.
RATNAGIRI DISTRICT—REASONS FOR REJECTION OF THE APPLICATIONS FOR TAGAI LOANS IN THE YEAR 1955-56. |
Reasons for rejection. |
Number of applications. |
Amount. | |
|
|
Rs. | |
(1) Lack of security or adequate security |
187 |
88,014.38 | |
(2) Purpose of Loan not approved |
59 |
19,200.00 | |
(3) Old Dues to Government |
12 |
10,439.00 | |
(4) Miscellaneous |
120 |
51,048.00 | |
Total |
378 |
1,68,701.38 |
From the foregoing tables some of the significant facts about granting of Tagai loans are easily discernible. The financial assistance granted under both the Acts seems to be very inadequate in relation to the needs of the agriculturists in the district as could be seen from the total amount asked for during 1955-56, under Land Improvement Act of 1883, which was Rs. 30,746. The sum sanctioned during the same year was of the order of Rs. 24,250 only. Similarly while the amount asked for under Agriculturists Loan Act of 1884 during 1955-56, was Rs. 51,555, the total amount sanctioned was Rs. 42,976. There is, however, a marked tendency for an expansion in financial assistance to agriculture by the State during the last few years. This can be seen from the total amount of Tagai loans advanced every year after 1951 except in 1954-55, when there was a shrinkage in State assistance.
It is also apparent from Table 15 that the time-lag required for sanction of the majority of loans since the receipt of the applications for them was not inconsiderate. In over eighty per cent, of the cases, the time taken for sanction was less than two months.
The Table No. 18 reveals that out of a total number of 778 applications as many as 187 were rejected for lack of security or adequate security. In case of 59 applications, the purpose for which loan was sought was not approved. Old dues to Government also provided, in a few cases, a basis for rejection. Applications were turned down for a variety of reasons. The State grants loans to agriculturists for specific purposes and many times they fall short of their needs. The agriculturists, therefore, prefer more often to avail themselves of a more elastic and easy system in the institution of money-lenders.
Further, although the time taken to sanction these loans was not long as can be seen from the table and disbursement of loans was not delayed, recovery of loans had to be effected by resorting to strict legal measures.
As regards financial assistance under the Grow-More-Food Campaign, Government is giving liberal assistance to meet the demands of the people. This can be seen from the total amount actually sanctioned under the Grow-More-Food Campaign during 1955-56 vis-a- vis the amount asked for by the people. This assistance was made for current expenditure as well as for purchase of seed, fodder, manure and farm implements. Thus the total amount disbursed during 1955-56 was Rs. 24,135.68. Resides financial assistance under the Grow-More-Food Campaign, Government also granted a loan of Rs. 33,600.00 for the National Extension Service area during the same year.
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