NABARD puts State’s credit potential at ₹2.44 cr. for 2020-21

It says climate change is major challenge in Karnataka, particularly in farm sector

March 18, 2020 08:03 pm | Updated 08:03 pm IST - Bengaluru

The NABARD (National Bank for Agriculture and Rural Development) regional office in Karnataka has projected the credit potential for priority sector at ₹2,44,564 crore for 2020-21.

The credit potential for agriculture has been estimated at ₹1,45,798 crore. But NABARD said that credit flow to agriculture, which saw 60% achievement till December 2019, was considered “not satisfactory”. Cooperatives, commercial banks and regional rural banks contributed 16%, 73% and 11% respectively to the agricultural credit in 2019-20.

P.V.S. Suryakumar, chief general manager, NABARD, Karnataka, on Wednesday presented the State Focus Paper (SFP) 2020-21 to Chief Minister B.S. Yediyurappa and said that the SFP considered the climate challenges in Karnataka a major one, particularly in the farm sector. The State witnessed frequent droughts and floods in 2016 and 2019.

The credit flow into micro, small and medium enterprises has been estimated at ₹57,514 crore, export at ₹4,597 crore, education at ₹5,574 crore, housing at ₹27,532 crore, renewable energy at ₹1,156 crore, and social infrastructure at ₹2,393 crore.

NABARD said Farmer Producers’ Organisations can play a major role in consolidation and aggregation and can promote efficient market linkage. In Karnataka, there are more than 400 such organisations promoted by various agencies. NABARD had promoted 242 organisations in the State.

NABARD had provided refinance assistance to banks in the State for short term crop loan and long term loans amounting to ₹81451.00 crore during the last five years. It has provided an assistance of ₹14,150 crore for infrastructure development in rural areas in Karnataka.

Mr. Suryakumar explained about various business and developmental initiatives of NABARD such as refinance, infrastructure funding under Rural Infrastructure Development Fund (RIDF) and Dairy Infrastructure Development Fund (DIDF), FPO formation and nurturing, E-Shakti project for digitization of SHGs. He expressed that cooperation from all stake holders; State government, banks, NGOs, research institutions.

The Chief Minister advised the banks to achieve the targets fixed under annual credit plans which are based on the potential worked out by NABARD. He requested the banks to align their credit programmes with various schemes of the State government for the welfare of the farmers.

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