Nabard sees Gujarat's farm loan potential at Rs 41K crore next fiscal

The National Bank for Agriculture and Rural Development (Nabard) has estimated Gujarat’s farm credit potential at Rs 41,166 crore for the year 2013-14, showing an increase of close to 30 per cent against 2012-13.

In its State Potential linked Credit plan (PLP) prepared for the year 2013-14, Gujarat Region of Nabard has estimated a total credit outlay of Rs 61,300 crore under priority sector, of which agriculture accounts for Rs 41,166 crore or 67 per cent of the total priority lending.

“Projections for the year 2013-14 in respect of agriculture credit amount to Rs 41,166 crore, up from Rs 31,763.13 crore in 2012-13 envisaging a growth of 29 per cent in conformity with national targets in respect of agriculture credit,” Nabard stated in a note on State PLP.

The projection for the total priority sector lending has increased by 29 per cent on year-on-year basis from Rs 47,431.88 crore in 2012-13.

Out of the total farm credit outlay of Rs 41,166 crore, crop loan stands at 74 per cent and that of allied activities stands at 26 per cent. In the agriculture allied activities segment, farm mechanisation stands at 31 per cent of the total credit, followed by water resources 16 per cent and storage godowns or market yards hold 13 per cent in the allied activity credits.

“Agro and food processing , till now a part of agriculture credit but now it has been shifted to SME sector as per revised priority sector guidelines of Reserve Bank of India. The segment has a projection of Rs 993 crore for 2013-14,” it said.

The state PLP for 2013-14 will be presented in the form of a State Focus Paper at a state credit seminar being organised by Nabard in Ahmedabad on February 26. Bankers, academicians, government officials and stakeholders are likely to remain present at the event.

Nabard has prepared about 26 such PLPs for different states and consolidated them in to a State Focus Paper to stress on the credit offtake in different segments.