New Delhi: Soon after announcing a major package for agriculture, Finance Ministry swung into action directing States to work out targets by June 30 for boosting farm credit and providing debt relief to distressed farmers.

Finance Minister P Chidambaram shot off letters to Chief Ministers of all States to implement the action plan announced on Friday (June 18, 2004), which included raising farm credit by 30 per cent to Rs 1,04,500 crore this fiscal and a 4-point strategy to restructure debts of distressed farmers considering that the new sowing season has already begun.

"The action plan involves a number of measures which can be effectively implemented only with close cooperation of State Governments," he said seeking the cooperation of States in implementing the action plan of the UPA (United Progressive Alliance).

The agriculture package, worked out with Reserve Bank, Nabard and Indian Banks Association last week, broadly envisages a 30 per cent higher credit flow to farm sector at Rs 1,04,500 crore in this fiscal, providing credit to 50 lakh new farmers and restructuring debts of farmers in distress.

Chidambaram said the main tasks required to be undertaken at State, district and lower levels include finalisation of operational targets in consultation with local offices of Nabard and banks in State and district level bankers' committee meetings. The meetings must be held before June 30, 2004, he said.

States should also assist banks for formulating new "bankable investment projects" like plantation, horticulture, fisheries, organic farming, agro-processing and other agriculture activities, he said.