Despite failure of monsoon last year which adversely impacted rice production, agricultural credit flow by public sector and co-operatives banks crossed Rs 3,00,000 crore during the first 11 months of last financial year that ended March 2010, a statement by ministry of agriculture on Tuesday said.

This is about 95% of the total farm loan disbursal as targeted by the government.

State-owned commercial banks, co-operative banks and regional rural banks have extended credit worth Rs 3,08,320 crore to farmers during April 2009 ?February 2010 of last fiscal, against the target of Rs 3,25,000 crore.

?With data for March not available, 100% target is within reach in 2009-10,? the statement noted.

According to official data, banks disbursed credit worth Rs 2,26,045 crore, cooperative banks extended Rs 52,282 crore and regional rural banks lent Rs 29,993 crore loan to the agriculture sector during April-February of last fiscal.

Target of agriculture credit flow for the 2010-11 fiscal is set at Rs 3,75,000 crore. Experts say that with the India Meteorological Department predicting a normal monsoon the credit off take may go up significantly as the farmers may need to invest more in seeds and fertiliser for increasing yield.

?The increase in agricultural credit would go a long way in not only increasing farm yield but also creating better rural infrastructure such as warehousing, cold storage and transportation,? PK Joshi, director of National Academy of Agricultural Research Management, an Indian Council for Agricultural Research (ICAR) affiliate institute, told FE.

Joshi noted that banks must now focus on credit disbursal to intermediaries such as transporters and wholesale dealers so that agricultural infrastructure gets a boost.