Guwahati, Sept 20: Land-title issues are making it difficult for several groups of farmers in Assam to get formal farm loans, prompting the state to seek financing policies that take regional needs into account. Assam Finance Minister Jayanta Mallabaruah called for a more region-specific approach to farm financing, saying the needs of farmers in Assam and the Northeast cannot always be met through uniform financial and agricultural policies.

Addressing the Day 2 session on “Financing Agriculture Sector Transformation” at the two-day conference on “Financing India’s Journey towards Viksit Bharat”, attended by Union Finance Minister Nirmala Sitharaman and finance ministers and chief ministers from several states and Union Territories, Mallabaruah highlighted Assam’s agricultural potential and called for better access to institutional credit and stronger farm-to-market links. He said around 40-46% of India’s workforce is engaged in agriculture and allied activities, while the sector contributes around 18 per cent to GDP.

He stressed the need to improve farm productivity, value addition, market access and incomes. “Uniform financial and agricultural frameworks may not always address the specific requirements of every State.

Regional production patterns and local realities must be considered while designing support mechanisms,” Mallabaruah said. He also pointed to differences in access to institutional farm credit across regions and called for a more inclusive financing system for the Northeast.

Among the key problems, he said, are difficulties faced by tenant and leasehold farmers, cultivators of government land, Forest Rights Act beneficiaries and small tea growers in getting institutional loans because of land-title issues. Mallabaruah said the distribution of Farmer IDs had started in Assam under Chief Minister Himanta Biswa Sarma.

The IDs could help provide more targeted support to tenant farmers, lease farmers, forest dwellers and other cultivators. Mallabaruah also called for greater focus on the entire farm value chain, from production and primary processing to storage, marketing and exports, to help farmers get better and more stable returns.

While cold storage, warehouses, transport and marketing facilities remain important, he said local processing is especially important for perishable crops that can deteriorate within two to five days of harvest. Mallabaruah identified Assam’s agarwood sector as an area with strong potential for farmers and rural communities.