Hyderabad, July 22: Alleging neglect of Agriculture sector by TDP government, opposition congress in Andhra Pradesh today demanded lowering of interest rate on crop loans to three per cent and removal of ceiling on loans to boost rural economy. Reeling out statistics to show how agriculture growth rate and rural credit flow are steadily declining in the state, Congress Legislature Party (CLP) leader Y S Rajasekhar Reddy told reporters the impact of such deceleration on small and marginal farmers has been disastrous.
While agricultural production in 1980s grew at 5.2 per cent at all India level and 4.79 per cent in the state, it came down drastically touching 2.20 per cent at all India level and 2.27 per cent at the state level during 1994-2002, he said. Simultaneously, there has been a steady decline in credit flow to farmers with the advances in semi-urban and rural areas accounting for a mere 19 per cent of the total advances as on march 31, 2002, Reddy said adding, "this is blatant injustice". Favouring reduction of interest rate on crop loans to three per cent and maintenance of combined credit deposit ration of 62 per cent for semi-urban and rural areas, the CLP leader said "such a measure would result in better recovery, greater capital inflow into rural economy and freeing farmers from the clutches of the private money-lenders.

Bureau Report.