The Hindu Business Line : Nabard pegs credit potential for farm sector at Rs 23,130 cr

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Hyderabad March 6 The National Bank for Agriculture and Rural Development (Nabard) has pegged the credit potential for Andhra Pradesh under priority sector at Rs 36,857 crore in 2007-08 against Rs 32,574 crore in the previous year, showing a growth of 13.15 per cent.

The credit potential for agriculture and allied sector is put at Rs 23,130 crore (Rs 20,513 crore), showing a growth of 12.76 per cent.

Releasing the Focus Paper for Andhra Pradesh, Mr K.G. Karmarkar, Managing Director, Nabard, said the plan would help banks channelise their sources to tap the potential areas.

Stating that Andhra Pradesh had been Nabard's No. 1 client with over 10 per cent of credit going for the State, he asked the State to focus on a robust infrastructure and prepare a long-term plan.

Crop loans

Pointing out that crop loan-term credit to agriculture ratio (85:15) was biased towards the former, he suggested that 65:35 would be a good mix. Mr Karmarkar also asked the State to focus on training to farmers and strengthening supply chain management.

This year, the potential for crop loans was put at Rs 18,628.42 crore and potential for term investment for agriculture and allied activities, crops loans was pegged at Rs 4,501.85 crore.

Non-farm sector

While the potential for non-farm sector was at Rs 4,209.22 crore, potential for agro and food processing stood at Rs 250.8 crore and for self-help groups (SHGs) at Rs 3,000 crore.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, said there was an urgent need to promote the agriculture-allied sector in a big way. Stating that irregular rainfall had been affecting agriculture, he stressed the need for developing irrigation facilities.

SHGs allotment

Referring to the increased allocations to self-help groups under Indira Kranthi Patham, he said the banks had targeted to give loans to the tune of Rs 5,000 crore in 2007-08 against Rs 3,500 crore last year.

He asked the Nabard to sanction Rs 100 crore for strengthening of SHGs.

More Stories on : Farm credit | Agricultural Institutions | Andhra Pradesh

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