The Hindu Business Line : Kerala Minister flays Nabard approach

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Thiruvananthapuram Feb. 4 Despite claims that its role is to help the farmers and promote the growth of the farm sector, the approach of Nabard has not been encouraging with respect to Kerala, according to the Minister for Co-operation, Mr G. Sudhakaran.

He said that almost all district co-operative banks and primary agricultural credit societies in the State had extended loans at an interest rate of 5.5 per cent as declared by the State Government.

But Nabard had gone back on its announcement that it would make available farm loans at 2.5 per cent and had not granted refinance on even the loans distributed at the rate fixed by the Government, the Minister said.

The bank had announced in the beginning of the current fiscal that it had set aside Rs 650 crore to be given out as farm loans at an interest rate of 2.5 per cent. However, it had so far granted only Rs 70.5 crore.

`ANTI-FARMER'

The Minister termed as anti-farmer the Nabard's stand that it would provide refinance only if all the societies in the State distributed agricultural loans at low rates.

The Minister also said that apart from the "unhelpful attitude" of Nabard, the insistence of the Reserve Bank of India that the credit societies should pay 30 per cent income tax on their net profit would only weaken the co-operative societies in the State.

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