Focus Paper For AP Farming Sector

The National Bank For Agriculture And Rural Development (NABARD) has seen a provision of over Rs. 8,000 for Self Help Groups in the year 2011-2012.

Finance minister Anam Ramnarayan Reddy on Friday released the state focus paper for AP, which was presented by NABARD. The bank's estimated requirement for the farming sector is about Rs. 70,000 crore for the next financial year.

Rs. 7,000 crore worth of loans is the requirement for the non-farming sector. With regards to other priority sectors, NABARD has indicated that their credit potential is Rs. 19,600 crore, including Rs. 8,920 crore for financing SHGs in AP under the SHG-bank activities.

Releasing the focus paper, Ramnarayan Reddy stressed on the need for increasing investments in agriculture. He also emphasized the need to provide alternate income sources to farmers so that their distress in case of natural calamites can be avoided.

He also outlined initiatives taken by the state government, like increasing investments in irrigation, and providing extension services through Rythu Sadassulu and Rythu Chaitanya Yatralu.

Further, he said that more infrastructure is being created by the government through the Rural Infrastructure Development Fund of NABARD.

The state focus paper projected crop loans at Rs. 33,528 crore. Agriculture term loans have been pegged at Rs. 10,530 crore. For the non-farm sector, an amount of Rs. 7,157 crore has been identified, while that for other priority sectors stood at Rs. 19,633 crore, including Rs. 8,920 crore for financing SHGs in the state, both under the SHG-Bank Linkage Programme and Community Based Sustainable Agriculture.

NABARD Executive Director A K Bandyopadhyay maintained that bankers enhance lending activities at the farmers' level. The estimated credit of SHGs for 2011-12 works out to Rs. 11,011 crore, including Rs. 2,091 crore for community-managed sustainable agriculture, as part of term-loans for farm sector.

Courtesy: INN