The National Bank for Agriculture and Rural Development (Nabard) has projected a credit potential of ₹2,44,56,428.64 crore for financial year 2020-21 for Karnataka.

In the State Focus Paper (SFP), submitted to Chief Minister BS Yediyurappa on Wednesday, it has pegged the total credit potential at ₹1,45,79,750.50 crore for agriculture.

“The credit potential for agriculture includes main components such as: crop loan ₹85,21,102.90 crore, water resources ₹4,57,241.11 crore, plantation and horticulture ₹8,92,340.11 crore and for dairy development ₹5,65,664.10 crore,” said PVS Suryakumar, Chief General Manager, Karnataka-RO, Nabard.

Nabard has pointed out few issues which can drive agriculture credit in Karnataka.

“Loan waivers are leading to borrowers defaulting, further anticipating bail outs, rising NPAs and the final result is the credit channel is choked. Increase in agricultural gold loans and synchronising PM KISAN and KCC,” Suryakumar said.

Talking on Farmer Producers Organisations, he said in Karnataka there are more than 400 FPOs promoted by various agencies. Nabard has promoted 242 FPOs in the State.

“This time Nabard is to give special focus to FPO. Here FPOs can play a major role in consolidation/aggregation and can promote efficient market linkage,” explained Suryakumar.

Nabard has also provided refinance assistance to banks in Karnataka for both Short-Term Crop Loan and Long-Term Loans amounting to ₹81,451 crore during the last five years.

For infrastructure development in rural areas in Karnataka, Nabard has provided an assistance of ₹14,150 crore.

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