Daijiworld Media Network - New Delhi
New Delhi, Apr 22: Union Agriculture Minister Shivraj Singh Chouhan on Tuesday expressed strong dissatisfaction with the existing rural banking system, calling for a complete overhaul to make it more accessible and farmer-friendly.
Speaking at a panel discussion on agriculture during Civil Services Day, Chouhan said the current rural credit mechanism is failing farmers. He noted that many are forced to travel 8 to 10 kilometres to reach bank branches, only to face long queues and inadequate staffing.
He highlighted that the growing number of direct benefit transfers, including payments under schemes like MNREGA and PM-Kisan, has placed significant pressure on limited rural banking staff, making the system increasingly unsustainable. He called for an urgent review of manpower deployment in rural branches.
Despite initiatives such as the Kisan Credit Card, Chouhan said accessing farm loans remains a complex process involving extensive paperwork and multiple visits to local authorities, including patwaris and tehsil offices.
He urged policymakers and banking institutions to look beyond Non-Performing Asset (NPA) figures and focus on the human distress behind them, stressing the need for innovative and practical solutions.
The minister also pointed to the limitations of technology in agriculture, citing issues during a recent wheat procurement drive where satellite-based verification created hurdles instead of easing the process. He emphasised that digitalisation must align with ground realities.
Addressing the challenges faced by small and marginal farmers, Chouhan said income from grain cultivation alone is insufficient for sustenance. He encouraged diversification into allied sectors such as horticulture, animal husbandry, fisheries, and beekeeping, while noting that lack of capital remains a major barrier.
He also supported expanding warehouse receipt financing to help farmers avoid distress sales, but stressed that the scheme must be made more accessible to be truly effective.