The Hindu Business Line : Kerala farm sector sees rise in credit flow

Thiruvananthapuram, July 13 There has been more than three-fold increase in the ground-level flow of credit to the agriculture sector in Kerala over the last five years.

Mr Bhawar Puri, Chief General Manager of Kerala Circle of National Bank for Agriculture and Rural Development (Nabard), said that the credit to agriculture sector rose from Rs 4,549 crore to Rs 15,444.65 crore during the five-year period through the combined efforts of Nabard, banks and the State Government.

Speaking on the 27th Foundation Day of Nabard, he said that during the current year, the bank had sanctioned Rs 450 crore to the State towards the implementation of 36 drinking water projects in 12 districts under the Rural Infrastructure Development Fund-XIV (RIDF-XIV). This was the highest ever sanction under RIDF in Kerala, he added.

On completion, these projects will ensure drinking water supply to 124 panchayats, besides generating non-recurring employment to the tune of 115 lakh mandays. Nabard has so far sanctioned Rs 2,073 crore to the State for implementing 2,911 projects covering rural connectivity, irrigation, soil conservation, rural markets and rural health centres under RIDF.

The Chief Minister, Mr V.S. Achuthanandan, who was the chief guest at the function, requested Nabard to extend support to the State for implementing the Food Security Programme and also to distribute interest-free loans for paddy cultivation.

He noted that Nabard was presently borrowing funds from the market at high rates, rendering it unable to lend at cheaper rates at the ground level.

The Reserve Bank and Centre should provide cheap funds to Nabard as well as contribute more to its share capital, he said.

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