The Gazetteers Department

India being primarily an agricultural country her prosperity depends to a large extent upon the productivity of land and the economic conditions of the farmers. The productivity of land, however, is limited by a number of factors such as uneconomic holdings, dependence of agriculture upon the vagaries of monsoon, etc. The factors affecting economic condition of the agriculturist are low productivity of soil, inefficient and unskilled labour, etc. These factors together render the agriculturist incapable of improving agriculture solely by his own efforts. What he needs most is financial assistance.

Loans.

"Neither tank irrigation nor the embankment of fields have hitherto found favour among agriculturists, and the main purpose for which loans under the Land Improvement Loans Act have been granted has been the excavation of wells and in a few cases only the construction of field embankments. The Government accounts have been complicated by the inclusion under Land Improvement Loans of a sum of Rs. 1,42,380 advanced in the famine of 1,900 for the purchase of seedgrain and bullocks. Excluding this sum, Rs. 32,000 in all were advanced under the Act between 1881 and 1904. Of this, nearly Rs. 6,000 have been remitted and the balance appears to have been recovered as it fell due with interest. A sum of Rs. 5,000 was shown as outstanding in 1904-05. The amount shown as remitted is probably the proportion of principal due for remission under the Special Famine Loans of 1,900, and does not consist of irrecoverable arrears, so that the advances under the Act have not involved Government in any loss. Between 1892 and 1904 no less than 438 sanads have been granted for improvements, 94 of these being given to proprietors and 344 to tenants. Out of the whole number of sanads only 50 have been given for the erection of field embankments and the remainder, for digging wells. Most of the sanads were given for works undertaken in the famine of 1900, and the wells dug were intended in the first instance to obviate the great scarcity of water experienced in that year. Their use for irrigation was only a secondary purpose and there has been no very noticeable expansion of the irrigated area. The total amount advanced under the Agriculturists' Loans Act from 1884 to 1903-04 was Rs. 3.17 lakhs. Of this sum, Rs. 1.50 lakhs were advanced in the famine of 1900-01, and the bulk of the money was subsequently transferred in the accounts to Land Improvement Loans. The greater part of the sum advanced was recovered in the following year. In all about Rs. 9,000 principal and interest have been remitted of the advances under the Act and the remainder has been recovered as it fell due." [Central Provinces District Gazetteers, Wardha District, Vol. A., 1906, pp. 126—27.]

It seems from the above paragraph that the need for financing agriculture was realised very early and assistance was given from time to time. Under the British Rule a number of Tagai Acts providing finance were passed. But the agriculturist began to receive active assistance only after 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 finance and the latter with short-term accommodation.

Land Improvement Loans Act 1883.

The rules and measures for extending financial aid to agriculturists which were in force since 1871 were modified in the form of the Land Improvement Loans Act of 1883. This Act is still in force. Loans under it were formerly given for the sinking of wells, the eradication of shrubs and deep-rooted weeds from fields and the making of embankments.

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 Officers and Mamlatdars are authorised to grant loans to the extent of 8� per cent, of the total amount of loans to be disbursed i.e., 16 pies per rupee per annum. In particular cases.however, the Government may reduce the rate of interest or may not charge any interest at all. The loan is given where the grantor is satisfied as to the security with a margin of safety. Generally immovable property is demanded as security against loans to be advanced under this Act.

Agriculturists' Loans Act-l884.

Loans under this Act are granted to holders of arable lands for purchase of seed, fodder, agricultural stock or implements. They are also granted to hire cattle, to rebuild houses destroyed by calamities, to meet the monetary needs of cultivators 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 for grant of loan are the same as under the Land Improvement Loans Act of 1883.

" Many reasons were given for the comparative unpopularity of the Government loans; the most common being perhaps, the delays connected with the system. To this may be added a few factors, which elsewhere also operate against the success of tagai. Government occupied an indefinitely stronger position than the ordinary creditor, and insisted upon prompt repayment."

With the advent of Independence, the agricultural sector of the district economy received top priority as far as Government Assistance was concerned, and necessary changes were introduced in the distribution of tagai loans. The amount of loans was also increased with a view to stepping up agricultural production. Thus besides the above two Acts (viz., the Agriculturists' Loans Act and Land Improvement Loans Act) the Government also extended loans and subsidies to agriculturists under the Grow More Food campaign launched by the Government.

In addition to the loans granted by Government directly to the agriculturists, the Government indirectly helps the farmers by implementing numerous other schemes under which it sanctions loans and subsidy to the agriculturists for the improvement of land and for other purposes such as reclamation, purchase of quality seed, etc.

TOP