Despite higher credit support, agricultural growth in Uttarakhand has fallen, creating a big imbalance between the hills and the plains.
Agriculture is the predominant sector in the state economy, which contributes 23.4 per cent in gross state domestic product (GSDP) and about 58 per cent of the population is dependent on it.
“Agriculture is showing a declining trend. The growth has mainly been in the plains while the hills are languishing due to negative growth in agriculture, thus creating a big imbalance between the two regions,” said Prashant Das, Chief General Manager, Nabard, here during the presentation of state focus paper (SFP) Uttarakhand (2010-11).
But despite the fall in agricultural growth, a credit potential of Rs 5,893 crore has been estimated for 2010-11 under agriculture and other priority sectors. This is 12 per cent higher than the previous year’s credit estimates. This includes credit flow of Rs 2,586 crore to the agriculture sector including crop loan of Rs 1,700.24 crore.
Another area of concern in the state is poverty level. According to the paper, a hefty 621,000 families, which comprise 47.42 per cent of total rural families fall under the BPL category.
“The net irrigated area in the state is 334,000 hectares. The share of plains is about 85.83 per cent whereas the hill region accounts for only 14.17 per cent. This imbalance needs to be corrected,” said Das.
However, the banking industry in the state is showing4 positive growth. As on March 31, 2009, the outstanding advances from banks were Rs 15,866 crore as against Rs 13, 591 crore in the previous financial year, thereby recording a growth of 26.94 per cent. Since the formation of the state, a sizeable increase in bank deposits has been observed. The deposits have increased from Rs 10,586.57 crore in 2000-01 to Rs 32,886 crore in 2007-08, recording 208 per cent growth in seven years.
The CD ratio is, however, fluctuating in the state, which stands at 41 per cent. Again there is an imbalance in hilly districts and the plains as far as the CD ratio is concerned.
As on March 31 last year, banks have issued 86,917 kisan credit cards amounting to credit limit of Rs 72,805.03 lakh as against target of Rs 50,000 lakh. But the paper noted that response of cooperative banks for extending insurance coverage to all its eligible borrowers has not been comprehensive in the state.
