Union Minister Shivraj Singh Chouhan calls for overhaul of rural credit system

New Delhi: Union Agriculture Minister Shivraj Singh Chouhan on Tuesday expressed deep dissatisfaction with the existing rural banking system and suggested a complete overhaul to make it more farmer-friendly.

Speaking at a panel discussion on Agriculture during Civil Services Day, Chouhan said the current rural credit mechanism is failing the very people it is supposed to support.

He said farmers often walk 8 to 10 kilometres to reach a bank branch, only to return disappointed after facing long queues and severely understaffed counters.

The minister pointed out that the surge in direct benefit transfers — ranging from MNREGA wages to PM-Kisan instalments — has put immense pressure on limited rural bank staff, making the system unsustainable.

He called for an urgent review of manpower deployment in rural branches.

Despite schemes like the Kisan Credit Card, securing a farm loan remains a tedious ordeal involving multiple layers of paperwork, visits to patwaris, and tehsil offices, Chouhan said.

Chouhan urged policymakers and bankers to move beyond merely looking at Non-Performing Asset (NPA) figures and focus on the human suffering and hardships behind those statistics.

He emphasised the need for introspection and innovative, out-of-the-box solutions.

Chouhan also pointed out the limitations of technology in agriculture. He cited the recent wheat procurement drive where satellite-based verification created new obstacles for farmers instead of simplifying the process. “Digitalisation must be rooted in ground realities,” he stressed.

On the challenges faced by small and marginal farmers, the minister noted that income from grain cultivation alone is insufficient for survival. The officials should encourage farmers take up integrated farming he said adding that diversifying into horticulture, animal husbandry, fish farming, or beekeeping requires capital -- capital that most lack and that subsidies alone cannot provide.

Chouhan supported the expansion of warehouse receipt financing to help farmers avoid distress sales, but stressed that the scheme must be made truly accessible.