The North-East and Jammu and Kashmir have emerged as the best performers in the country in terms of the value of agricultural output generated compared to agricultural credit consumed. According to “Agricultural Gross District Domestic Product 2005-2006” figures compiled by Indicus Analytics, 19 of the North-East’s 72 districts and four of Jammu and Kashmir’s 14 districts have credit to agricultural output ratios of more than 50, implying that the value of their outputs is 50 times more than the value of the credit consumed by them.

What may startle many, including agriculture experts, is the fact that barring a few, all districts in this area have double-digit rates of return. This is in stark contrast to the national average of 4.04, which has more than halved from 9.6 in 2001. The credit consumption patterns shows that less productive districts are consuming above average credit while districts with exceptional productivity are consuming credit at below average levels.

The hilly Ukhrul district of Manipur, which borders Myanmar, recorded the highest ratio in the country at 1253.68, while Diburagarh in Assam recorded a surplus of Rs 1,620 crore, the highest in the region. Jammu was not far behind with a surplus of Rs 1,380 crore while Midnapur, West Bengal, generated the highest surplus in the country at Rs 6,560 crore (with a ratio of 12). Not a single district from the West or South of the country figures in the list.

Ironically, while on the one hand, this might imply excellent returns on capital invested, the fact remains that these regions are not getting adequate credit. Further, and on the positive side, it also means that there is a lot of scope for capital to be invested in these areas.

... contd.