From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Dec 21: National Bank for Agriculture and Rural Development (NABARD) has estimated Karnataka’s credit flow potential for the year 2011-12 at Rs 41085.23 crore, which marks a significant increase of 31 per cent over the previous year.
Dr V Tagat, Chief General Manager, NABARD, Bangalore, who addressed the State Credit Seminar 2011-12, said the bank has created potential linked credit plans for all 30 districts in the State before estimating the overall credit flow potential.
The share of crop loans formed 45 per cent of the total potential estimated, followed by other priority sector at 29 per cent, agricultural term loan at 18 per cent and non-farm sector at eight per cent.
Dr Tagat said the credit flow to crop loans in 2010-11 was Rs 14,622.37 crore and the potential assessed for financing in 2011-12 was Rs 18,373.51 crore.
The credit flow to water resources sector in 2010-11 was Rs 947.22 crore and the estimated potential in 2011-12 is Rs 847.44 crore.
``The cumulative irrigation created under major, medium and minor irrigation touched 34.84 lac hectares,” he said pointing out that it was an impressive performance.
The estimated credit flow to various activities in 2011-12 is:
Land development - Rs 905.94 crore crore, farm mechinisation - Rs 1975.62 crore, plantation and horticulture – Rs 1415.94 crore, forestry – Rs 64.99 crore, dairy development – Rs 668.35 crore, poultry development – Rs 257.62 crore, sheep/goat/piggery – Rs 151.05 crore, fisheries – Rs 134.96 crore, Storage godown and market yards – Rs 561.09 crore, renewable sources of energy and waste utilization – Rs 59.78 crore, and food and agro-processing – Rs 731.98 crore, other activities – Rs 678.93 crore, term loan – Rs 7553.75 crore, non-farm sector – Rs 3365.83 crore, and other priority sector – Rs 11792.11 crore.
Pointing out that the agriculture sector faced several challenges on various fronts, Dr Tagat said the yield of most of the crops has not improved significantly while the scope for increase in the net sown area is limited and farm size has been shrinking.
The State Focus Paper said there were 5194 farmers’ clubs promoted by banks and NGOs.
Farmers’ clubs would be used as business facilitators, business correspondents by banks for wider financial inclusion outreach programme in rural areas.
Prakash Bakshi, executive director, NABARD, spoke about various problems confronting in the farm sector and called upon the bankers respond to the grievances by timely delivery of service.