46 per cent of the outlay will go towards disbursement of crop loans
28 per cent allocated for other priority sector
15 per cent goes towards investment in agriculture
BANGALORE: The National Bank for Agriculture and Rural Development (NABARD) has prepared a State credit plan of Rs. 27,543.29 crore for the priority sector for 2009-10, an increase of Rs. 2,923 crore compared with the previous year outlay (Rs. 2,4620.38 crore).
The crop loans, which formed the lion’s share in the credit plan, constituted 46 per cent (Rs. 12,602.95 crore), investment credit in agriculture and allied activities — 15 per cent (Rs. 4,211.80 crore), non-farm sector — 9 per cent (Rs. 2,409.88 crore), other priority sector activities — 28 per cent (Rs. 7,792.84 crore) and agro-processing — 2 per cent (Rs. 525.79 crore), according to NABARD officials.
A few major activities to be taken up under agriculture and allied activity sector are water resources development (Rs. 512.76 crore), land development (Rs. 609.30 crore), farm mechanisation (Rs. 877.98 crore), sericulture (Rs. 93.10 crore), forestry and watershed (Rs. 37.91 crore), plantation and horticulture (Rs. 727.28 crore), dairy development (Rs. 383.28 crore), poultry (Rs. 142.56 crore), fisheries (Rs. 54.50 crore), renewable and water utilisation (Rs. 27.37 crore) and others (Rs. 396.84 crore).
Despite heavy investment in the sector in the previous year, the agriculture sector registered a negative growth rate (-5.7 per cent) in 2008-09.
Nearly 66 per cent of the State’s population residing in rural areas and 56 per cent of the population depend on agriculture and allied activities for their livelihood.
To achieve 4 per cent growth rate in the primary sector in the 11th Plan, the officials said the rural sectors needed special attention and a major chunk of the outlay had to be spent efficiently by departments such as Agriculture, Cooperation, Public Works and Minor Irrigation.
NABARD had been preparing potential linked credit plans (PLPs) for all districts of the State since 1988-99. The estimated credit to 29 districts for the year 2009-10 are as follows: Bagalkot Rs. 1,411.03 crore, Bangalore Rural Rs. 400.68 crore, Bangalore Urban Rs. 690.62 crore, Belgaum Rs. 2,249.25 crore, Bellary Rs. 1,427.32 crore, Bidar Rs. 661.67 crore, Bijapur Rs. 852.10 crore, Chamarajangar Rs. 852.10 crore, Chickballapur Rs. 318.04 crore, Chikmagalur Rs. 873.65 crore, Chitradurga Rs. 873.65 crore, Dakshina Kannada Rs. 2,210.83 crore, Davangere Rs. 959.19 crore, Dharwad Rs. 1,147.79 crore, Gadag Rs. 510.83 crore, Gulbarga Rs. 1347.50 crore, Hassan Rs. 1,170.50 crore, Haveri Rs. 561.39 crore, Kodagu Rs. 966.22 crore, Kolar Rs. 409.89 crore, Koppal Rs. 472.43 crore, Mandya Rs. 696.95 crore, Mysore Rs. 1,596.95 crore, Raichur Rs. 909.49 crore, Ramangaram Rs. 330.39 crore, Shimoga Rs. 1,424.87 crore, Tumkur Rs. 903.64 crore, Udupi Rs. 1,216.05 crore, and Uttara Kannada district Rs. 784.23 crore.
The lead bank in each districts take initiatives to disburse credit to various sectors.
The NABARD had recently convened a meeting to bring together officials of banks and government agencies to discuss various issues to ensure smooth flow of adequate institutional credit to the agriculture sector and other rural sectors in 2009-10, the officials said.