The National Bank for Agriculture and Rural Development (NABARD), Regional Office, Karnataka, has projected the credit potential for the State at ₹2,96,051 crore for 2021–22, an increase of 21.05% over the projection made for 2020–21 of ₹2,44,564 crore.
Chief Secretary P. Ravi Kumar released the State Focus Paper 2021–22 and said the credit potential for agriculture had been estimated at ₹1,45,213 crore for the year. The farm sector has been receiving less investment in the State as 55% farmers own less than one hectare, he said.
Additional Chief Secretary and Development Commissioner Vandita Sharma said the credit flow to the farm sector from commercial banks during 2020–21 was not at all satisfactory. She appealed to bankers to be gentle in sanctioning loans to farmers and restructuring loans as the State witnessed both floods and droughts in the last few years.
“Lending to agriculture is not up to the mark. The sector needs a big push to make farming an income-generating sector,” she said.
Ms. Sharma also deplored the performance of banks in issuing Kisan Credit Cards (KCCs) and said issuing KCCs needs to be picked up. About 44.9 lakh farmers had been given the KCCs.
While farm credit, including credit for crop production, maintenance and marketing has been projected at ₹86,746 crore, credit for agricultural infrastructure has been estimated at ₹6,734 crore and for ancillary activities at ₹22,133 crore.
The credit potential of a whopping ₹1,08,509 crore has been projected for micro, small, and medium enterprises for 2021–22. Export credit estimated at ₹4,503 crore, education – ₹5,387 crore, housing – ₹28,579 crore, renewable energy – ₹1,104 crore, and social infrastructure – ₹2,756 crore, said the SFP.
Mrs. Sharma told banks to utilise the ‘FRUITS’ (farmer registration and unified beneficiary information system) portal to avail details of land of farmers while handling credit applications.
Niraj K. Verma, CGM, NABARD, Karnataka, urged the bankers to put their efforts for successful implementation of the credit plan for doubling the farmers’ income.
S. Rajendra Prasad, Vice-Chancellor of UAS, Bengaluru, said Krishi Vigyan Kendras would be ready to adopt farmers’ produce organisations to improve farm productivity and income.
Rakesh Singh, Additional Chief Secretary, Water Resources Department; Tushar Giri Nath, Principal Secretary, Cooperation Department; Abhijit Majumdar, CGM, SBI; and M.V. Venkatesh, Commissioner, Watershed Development Department, participated.
