The Hindu Business Line : Nabard pegs Kerala's credit potential at Rs 13,981 cr

THE National Bank for Agriculture and Rural Development (Nabard) has prepared district-wise potential linked credit plans (PLPs) amounting to a total of Rs 13,981 crore for Kerala in 2004-05.

The bank has also projected a likely credit flow of Rs 13,037 crore, leaving a resource gap of Rs 944 crore.

In a focus paper on Kerala, Nabard has said that the State should evolve imaginative and feasible policies and quick and effective implementation of projects for the overall efficiency of development sectors such as agriculture and allied areas, tourism, information technology and small-scale industries. Besides, the traditional sectors such as coir, cashew and fisheries have to be revamped.

There is need for initiating specific policies and programmes considering the agricultural situation in the State. For instance, hi-tech farming, keeping in view the potential available in floriculture and ethnic vegetables based on organic farming, is in need of immediate support.

The paper says that Kerala can be world capital for organic farming in the near future. A combination of measures such as encouraging agro industries/value-addition, efforts to build brand equity for agricultural produce and setting up of special agricultural zones could be some of the right steps for taking the State's agriculture to global standards. Efforts are also to be initiated for improving allied sectors such as animal husbandry and fisheries.

In the area of minor irrigation, it notes that despite heavy rainfall, Kerala experiences scarcity of water in summer. To overcome the situation, the Government may make all efforts, including financial support to schemes for promoting rainwater harvesting.

The optimum use of water resources can be achieved through water users associations. For this purpose, the State Government may provide initial financial support, on tapering basis, to the associations as in other States.

The Government may provide initial support in the form of inputs, incentives and infrastructure for taking up green house farming, biotechnology and organic agriculture in tandem with support from banks wherever feasible.

Also, it should expedite the proposal for delineating the State into agro-ecological zones based on biophysical resources endowment and other economic factors in order to evolve "development planning" at the grassroots level. In the plantation and horticulture sectors, intensive support and appropriate arrangements are required to ensure transfer of technology from the laboratory to land and dissemination of market information to the farmers.

The paper notes that the marketing infrastructure in respect of sericulture in the State is very poor. Hence, there is need for establishment of marketing infrastructure with assured remunerative prices for cocoons and raw silk. And to promote floriculture, the Government may initiate steps for developing an organised marketing system.

Further, specific areas with potential for medicinal plants have to be identified and developed. Farmers should be encouraged to take up cultivation of medicinal plants that have domestic and export demand.

A nodal agency for medicinal plant development may be set up for co-ordinating the mission and to take care of the forward and backward linkages.

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