The National Bank for Agriculture and Rural Development (Nabard) has urged the commercial banks in Karnataka to exploit the full potential of around Rs 3,750 crore in the microfinance sector compared to ground level credit flow of around ~1,400 crore presently.
“Agrarian distress could be effectively addressed by ensuring enhanced credit flow in around 300,000 hectares of dry land developed on watershed basis in the state,” B S Shekhawat, executive director, Nabard said.
Delivering a keynote address at the State Credit Seminar 2012-13, here on Tuesday, he said there is a need to improve the per hectare credit in the state from the present level of around ~23,000. He stressed the need for increasing flow of agriculture term loans to facilitate capital formation in agriculture. Banks need to step up their efforts in ensuring coverage of around 6.8 million farmers through Kisan Credit Cards by utilising the services of good NGOs and farmer clubs, he said.
Shekhawat also suggested the state government to strengthen investments in the areas of drinking water, setting up technical universities, post harvest management, processing infrastructure among others under the Rural Infrastructure Development Fund of Nabard. Releasing the State Focus Paper 2012-13, S V Ranganath, Chief Secretary, government of Karnataka, complimented Nabard for bringing out critical issues relating to agriculture and rural development. Implementation of the strategies indicated in the document are vital to take the State to the next orbit of development, he felt.
He highlighted the importance given by the State to agriculture development through schemes like Bhoo Chetana, Suvarna Bhoomi, Nirantara Jyoti, etc. He opined that efforts are needed to increase the income levels of small farmers in the dry land areas of the State.
Ranganath expressed concerns on the relatively low CD ratio of the State and advised the banks to evolve strategies for increasing the same. He suggested leveraging the services of NGOs and around 6,800 Farmer’s Clubs promoted by Nabard for taking technology from lab to land.
Presenting the State Focus Paper 2012-13, which has estimated a credit flow potential of ~52,168 crore under priority sector, a growth of 27 per cent over the present year in Karnataka, S N A Jinnah, Chief General Manager, Nabard, said 56 per cent of the potential was for farm sector with an emphasis on term loans for creation of capital formation in the rural areas.
Among districts, the lowest estimated credit potential is for Chamarajangar district - ~635.12 crore and highest for Dakshina Kannada district - ~3,875.55 crore.
Jinnah opined that Karnataka State should build on its unique features like dryland horticulture and millet based farming.
It should also seize the emerging opportunities of integrated farming systems, precision farming, Ajeevitha - the State Rural Livelihood Mission and the newly launched handloom weavers’ package.
CEOs of various public and private sector banks attended the seminar organized by Nabard.
