The Hindu Business Line : Nabard puts AP farm credit potential at Rs 22,538 cr

NABARD or the National Bank for Agriculture and Rural Development has projected a credit potential for agriculture and allied activities, including non-farm sector for Andhra Pradesh of Rs 22,538 crore during 2004-05. This represented a 19.5 per cent growth over the estimated credit potential for 2003-04.

The Chief General Manager of Nabard (AP Region), Mr J.R. Sarangal, said that Andhra Pradesh stood first in the country last fiscal in utilisation of rural infrastructure development funds (RIDF), financing self-help groups (SHGs), availing itself of production credit and formation of farmers clubs.

Addressing a press conference here on Thursday, Mr Sarangal said that the bank had recently constituted a "Regional Consultative Committee on Agriculture and Rural Development" to study the credit flow for agriculture and suggest strategies that would accelerate flow of credit to agriculture.

Last year, Nabard had extended a total credit support of Rs 2831.56 crore in AP for spurring economic growth in rural areas.

He said that the recently floated NABARD Consultancy Services (NABCONS) had already received a few offers in the State. These included evaluation of cattle breeding programme of AP Livestock Development Agency, preparation of an integrated sericulture development project and study of microfinance in tribal areas.

NABCONS offers consultancy in food processing, agri-business, horticulture, forestry, rural infrastructure projects, watershed and wasteland development, soil and irrigation.

Stating that Nabard had disbursed refinance of Rs 607.30 crore last year to various banks in the State for supporting long-term private investments in agriculture and allied activities, Mr Sarangal said that a total subsidy of Rs 55.36 crore was disbursed in regard to construction of 445 rural godowns accounting for a storage capacity of 22.15 lakh tonnes.

Similarly, Rs 30.46 crore was sanctioned for establishment of 30 cold storage units having a combined capacity of 1.6 lakh tonnes.

Under the SHG-bank linkage programme in the State, Nabard had extended a refinance support of Rs 310 crore last year. Cumulatively, since 1995-96, Rs 1846.58 crore of bank credit had been disbursed to more than 3.55 lakh SHGs in the State. Nabard's target was to link 10 lakh SHGs in the country by the year 2008.

Though more than 1,000 people in the State have undergone training for setting up agri-clinics, Mr Sarangal said that only five to six persons have so far approached Nabard for loans.

Apart from encouraging people to set up agri-clinics, Nabard would be focusing on consolidating SHGs in the State. The bank would also start co-financing more number of projects in future.

More Stories on : Farm credit | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCDEX to begin Web trading from Apr 12

Nabard puts AP farm credit potential at Rs 22,538 cr

Drought dries up lending options for banks in Kerala

Rubber prices flat on dull trading

Gold prices may consolidate

Demand flows for corn; exports may top 10 lakh t

FIB panel reconstituted

`Evolve oilseeds varieties resistant to drought'

Vietnam, Cambodia to become IPC members

Don't allow subsidy spat to derail farm trade reform

Co-op OTS extended