Assam Finance Minister Advocates for Tailored Agricultural Financing
Addressing Agricultural Financing Challenges in Assam
Minister Jayanta Mallabaruah speaks at a session on “Financing Agriculture Sector Transformation” in New Delhi. (Photo: Special arrangement)
Guwahati, Sept 20: Farmers in Assam are facing challenges in securing formal loans due to land-title complications, prompting the state to advocate for financing strategies that cater to local agricultural needs.
During the second day of the conference on “Financing India’s Journey towards Viksit Bharat,” Assam's Finance Minister Jayanta Mallabaruah emphasized the necessity for a region-specific approach to agricultural financing, noting that the uniform policies often fail to address the unique requirements of farmers in Assam and the Northeast.
Mallabaruah addressed the gathering, which included Union Finance Minister Nirmala Sitharaman and various state finance ministers and chief ministers, highlighting Assam's agricultural potential and the urgent need for improved access to institutional credit and enhanced farm-to-market connections.
He pointed out that approximately 40-46% of India's workforce is involved in agriculture and related sectors, contributing around 18% to the nation's GDP. He underscored the importance of boosting farm productivity, enhancing value addition, and improving market access and farmer incomes.
According to Mallabaruah, a one-size-fits-all approach to financial and agricultural policies does not adequately meet the diverse needs of different states. He stressed the importance of considering regional production patterns and local conditions when developing support systems.
He also highlighted the disparities in access to institutional credit for farmers across various regions, advocating for a more inclusive financing framework for the Northeast.
Key issues include the challenges faced by tenant and leasehold farmers, cultivators of government land, beneficiaries of the Forest Rights Act, and small tea growers in obtaining institutional loans due to land-title complications.
Mallabaruah mentioned that the distribution of Farmer IDs has commenced in Assam under Chief Minister Himanta Biswa Sarma's initiative, which aims to provide targeted assistance to tenant farmers, leaseholders, forest dwellers, and other cultivators.
He called for a comprehensive focus on the entire agricultural value chain, from production and primary processing to storage, marketing, and exports, to ensure farmers receive better and more stable returns.
While emphasizing the importance of cold storage, warehouses, transport, and marketing facilities, he noted that local processing is crucial for perishable crops that can spoil within two to five days post-harvest.
Mallabaruah identified the agarwood sector in Assam as a promising area for farmers and rural communities, urging for streamlined regulatory processes, quality testing facilities, local processing units, and improved export channels.
He stated, “Assam’s agarwood sector holds significant economic potential. Efficient export channels, simplified regulatory clearances, quality testing facilities, and local processing infrastructure can enable our farmers to gain more value from this high-value crop.”
The minister also pointed out the export potential of premium-grade ginger and turmeric from Assam's hilly regions, advocating for dedicated export infrastructure and links.
Recognizing the vulnerability of Assam and the Northeast to floods, localized droughts, and pest outbreaks, Mallabaruah called for the establishment of quick-response systems and real-time interventions to assist farmers during agricultural crises.