Nabard projects credit plan of Rs 68,172 cr for state in FY14

The National Bank for Agriculture and Rural Development (Nabard) has estimated a credit flow of Rs 68,172.27 crore under the priority sector in Karnataka for 2013-14. This is 31 per cent over the present year (2012-13). The bank has called for concerted efforts of banks in improving rural credit flow in the state and support of the state government for its implementation.

Releasing the State Credit Plan for Karnataka, here on Wednesday, S N A Jinnah, chief general manager, Nabard, said: “The theme for 2013-14 will be ‘Critical Rural Infrastructure for Agriculture and Rural Development’. We have identified focus areas of improving drought proofing measures and farm productivity in dry land areas, bridging yield gap, deepening risk mitigation mechanisms, addressing adverse price spread through value addition and producers’ collectives to realise long-term agricultural growth of 4.5 per cent as per the Vision 2020 document.”

In tune with the theme of Critical Rural Infrastructure for Agriculture and Rural Development in Karnataka, the State Focus Paper has prioritised last mile projects such as canal network and high priority projects such as watershed, model horticulture farms and nurseries, warehouses and food and millet parts among others.

Nabard undertakes the Potential Linked Credit Plan (PLP) exercise annually to facilitate banks’ attempt a scientific credit planning exercise in tune with sectoral potential assessment on the basis of infrastructure and other linkages available. Nabard has redesigned PLPs for all 30 districts this year with the 12th Five-Year Plan period (2012-13 to 2016-17) in mind.

For the entire 12th Plan period, Nabard has projected a potential credit of Rs 3,76,944.24 crore under total priority sector for Karnataka. Of this, Rs 1,88,158.30 crore is for crop production, maintenance and marketing (crop loan), Rs 59,561.35 crore for term investment for agriculture and allied activities (agri term loan), Rs 34,936.11 crore for the MSME sector (including food and agro processing) and Rs 94,288.48 crore for other priority sectors.

The prioritised resource requirement for critical infrastructure needs assessed for Karnataka state is Rs 8,098.19 crore during the 12th Plan period.

Nabard has also highlighted issues like fragmentation of land holdings, stagnant net sown area, low capital formation in agriculture and poor price spread realised by the farmers.

The state focus paper suggested focus on improving land productivity and farming systems for small and marginal farmers, popularising of micro irrigation and development of weather-based insurance products to mitigate risk.

Detailed presentations were made by the technical experts from Nabard which highlighted the need for the 100 per cent coverage of farmers under revised KCC, technology clubs and farmer field schools for improving productivity, registration of borewells and rigs with Ground Water Authority, establishment of farm equipment banks, producers collectives among others.