The Hindu Business Line : Nabard to pool small farmers’ holdings

Small is not beautiful for small farmers. As farmers with small holdings find agriculture unviable, the National Bank for Agriculture and Rural Development (Nabard) is planning to pool up such small farmers to make them a big player.

The Nabard is looking at a chunk of not less than 1,000 acres to provide consultancy and financial assistance. “Farming has become unviable for farmers. We are planning to pool them up together in order to empower them with financial assistance in order to produce in large quantities,” Mr S.R. Aluru, Chief General Manager (Andhra Pradesh), said.

Performance

Addressing a press conference here on Thursday, Mr Aluru said the bank had extended a credit support of Rs 3,871 crore in 2007-08 in the State, showing a growth of 11.38 per cent over 2006-07. Of this, Rs 1,412 crore was refinance to rural and cooperative banks and Rs 967 crore to micro credit sector.

Explaining the Nabard’s role, he said farmers could farm an association or rally behind a non-governmental organisation to get the bank’s assistance. According to him, small farmers would come under the micro-credit category as they needed small sums for their small holdings.

The bank’s officials are right now talking to farmers in various districts to prepare the pilot.

Cooperative revamp

Meanwhile, the bank has extended Rs 502 crore to 1,506 primary agricultural cooperative societies (PACS) in the first phase.

Of the 2,600 PACS in the State, these societies were found to be placed better with regard to recoveries (above 50 per cent.) In the second phase, an assistance of Rs 743 crore for 617 PACS more are planned.

The bank would review the performance of 477 PACS during 2007-08, whose performance didn’t show any improvement after the cut-off year of 2004.

More Stories on : Agricultural Institutions

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

Stories in this Section
Hailstorm threat to standing wheat crop

System of Rice Intensification — Optimising production with fewer inputs

Volumes may migrate to offshore markets

Spot rubber prices improve

Tea exports to traditional markets fall

Drop in volumes at Kochi tea auction

Assam hands over management of dairy activities to NDDB

Why blame bio-fuels for higher food prices

Nabard to pool small farmers’ holdings

Sharp correction likely in vegetable oil prices

Chilli futures up on demand, short supply

Pepper futures rise amidst volatility

Farm cost panel’s cane price formula leaves industry bitter