Credit potential of Tamil Nadu estimated at Rs 1 lakh cr

2013-14 estimate up 37% from last year's

National Bank for Agriculture and Rural Development (NABARD) has estimated the credit potential for Tamil Nadu at Rs 1,06,409.85 crore in 2013-14, an increase of 37%.

Speaking at the annual State Level Credit Seminar, organised by NABARD, Lalitha Venkatesan, CGM, NABARD said that in 2012-13 the credit potential was estimated at Rs 77,0835.45 crore.

Unless the state Government sets a target for investment and crop loan credit, it will be difficult to achieve the credit loan targets.

The major sectors include Rs 39,135.33 crore for crop production, maintenance and marketing, Rs 28,063.62 crore towards term loan for agricultural activities, Rs 20,002.64 crore for non farm sector and Rs 19,208.26 crore for other priority sector activities.

Under term credit for agriculture, the credit potential has been estimated at Rs 6,506.09 crore for farm mechanisation, Rs 5,845.28 crore for animal husbandry, Rs 4,479.88 crore for plantation and horticulture, Rs 3,0009.28 crore for storage godowns and market yards, Rs 2,863.66 crore for land development and Rs 2,080.52 crore for water resources.

The plan document estimates the credit potential for the priority sector to touch Rs 14,9231.37 crore at the end of 12th Five Year Plan.

Meanwhile, K Shanmugam, principal secretary for Finance, Government of Tamil Nadu said that the Second Green Revolution thrust would be on crop diversification comprising of high value horticulture and commercial crops, besides focussing on rain-fed development, water use efficiency, recharge of groundwater and conservation of soil.

He said to achieve the 2023 target, farmers' income need to go up and it can be done only through diversification.

"Food crop productivity need to be increased, while the focus should also be on high rewarding crops. Our focus will be on post harvest management and marketing," said Shanmugam.

He also asked the Bankers to advise and help the small and regional farmers on how to increase the productivity and adopt new technologies.

Lalitha Venkatesan added that at present 45% of the state livelihood depends on agriculture in Tamil Nadu. During the 11th Plan period, the sector grew only by 0.69% and the State Government's Vision 2023 Document set a target of 5.1% by 2023.

To support this infrastructure planning is key, she said.