The Potential Linked Credit Plan (PLP), prepared by the National Bank for Agriculture and Rural Development, has suggested that banks in the district encourage farm mechanisation by stepping up advances for the purpose.
The PLP, which would form the base document for the bankers to prepare their annual credit plan, observes that there was a need for agro centres which can lend farm machinery on rent to farmers and banks could finance such projects. It also suggests that government departments make available such machinery at the block level.
Banks could finance purchase of farm implements such as combined harvesters apart from tractors and tillers to overcome the shortage of labour and increase productivity. Banks could also explore the possibility of extending credit for farm implements through kisan credit cards, it says.
The PLP projects a credit flow potential of Rs.2,855.85 crore to the priority sector in Tiruchi district during 2012-13, which includes Rs.1,348.43 crore of short term credit for production, marketing and food security and Rs.461.84 crore of agriculture term advances.
The potential for advances to the non-farm sector is estimated at Rs.340.59 crore. The other priority sector offered scope for credit advances to the tune of Rs.705 crore.
The plan document was released at the District Consultative Committee meeting of bankers here on Friday by Jayashree Muralidharan, Collector, in the presence of D.Solomon Paul Durairaj, Assistant General Manager, NABARD, R.Krishnamoorthy, Chief Regional Manager, Indian Overseas Bank, the lead bank of the district, and bankers.
The plan recommends investments in high tech agriculture, technology driven horticulture practices, food processing and storage, steps to reduce post harvest losses and promotion of cluster or group approach with joint liability group financing as focus. Hi-tech horticulture practices such as use of poly houses, shadenet and plastic mulching should be promoted
The PLP suggests that banks in the district encourage agri clinics, seed processing centres and agri business centres. Stating that mono cropping was a matter of concern, the PLP suggests promotion of second crop to generate additional income and employment.
Banks should also extend credit support for community borewells, micro irrigation and rain water harvesting projects. Similarly, credit support should be extended for land reclamation, creation of farm ponds, bio-fertilizer and bio pesticide units.
Dwelling on the infrastructure requirements and gaps, the PLP says that there was a need for pack houses, cold storages and terminal markets in the district. Under the Rural Infrastructure Development Fund, the district has so far been provided Rs.363.83 crore for 587 rural roads, 44 bridges, 21 irrigation works, 37 check dams, 56 veterinary clinics, 11 pay and use toilets, 133 schools and 59 health sub centres.
In the current year sanctions have been made to select Primary Agriculture Credit Cooperative Societies for construction of rural godowns.
Later at the consultative committee meeting, Mr.Krishnamoorthy informed the officials that the total deposits in the district stood at Rs.11,144.79 crore against the total advances of Rs.8959.98 crore as on September 2011.
T.Ramadoss, Lead District Manager, and other officials attended the meeting.
