Nabard pegs Kerala's credit needs at Rs 31,691cr

The credit flow under the priority sector in Kerala is estimated to see a quantum jump during 2007-08.

According to the State Focus Paper for 2007-08, prepared by the National Bank for Agriculture and Rural Development (Nabard), the credit flow for the year has been estimated to be Rs 31,691 crore, comprising Rs 11,762 crore for agriculture and allied sectors, Rs 4,895 crore for the non-farm sector and agro-processing and Rs 15,034 crore for the services sector.

Inaugurating a seminar organised by the Nabard to deliberate on the estimated credit flow for the priority sector during 2007-08, Kerala chief secretary Lizzie Jacob stressed the need for more credit flow for agriculture and allied sectors, which 37 per cent investment is projected in the Nabard's focus paper.

Efforts should be made to create models for increasing productivity and to replicate them models in large numbers and to make cultivation commercially attractive for small farmers, she added.

On the rural non-farm sector, the chief secretary said that it was an important area considering Kerala's traditional industries like handloom, handicrafts, coir and the like.

"They hold great potential for growth if these sectors could be linked with the changing world trade scenario. Efforts would be needed for creating strong institutional leaderships which can drive the manifold components like design innovation, production oriented to the market, sharpening traditional skills," she pointed out.

According to B S Shekhawat, chief general manager, Nabard, Kerala regional office, the bank had prepared district-specific 'Potential Linked Credit Plans' for Kerala for 2007-08.

This has been done following a year-long exercise by Nabard's district development managers to assess the exploitable potential in each district. These were aggregated, sector-wise, at state-level, he added.