Agriculture sector needs more capital from banks: Experts

JAIPUR: The agriculture sector needs more financial support from banks in order to promote sustainable and equitable farming and rural prosperity which will also help in tackling food security issue in future, according to noted economist V S Vyas.

Speaking at 34th National Bank for Agriculture and Rural Development (Nabard) Foundation Day Lecture at its regional office here, Vyas said the areas that have good potential like dairy along with the farming should also be focused prominently.

"Banks should be encouraged to create more capital for agriculture sector for consistent economic growth. This would also increase productivity in the sector and it would ensure food security in future," Vyas said.

Sunanda Batra, General Manager at Reserve Bank of India, said that Nabard has played a vital role in development in the desert state and its contribution has enhanced productivity and crop yield.

She said that innovation in financing by Nabard has also shown positive results.

R K Gupta, state level bankers' committee's convener, said the banks in the state have not only achieved but surpassed the mandatory targets in lending and loan disbursement.

He said that there was a need to create financial literacy in rural areas and banks were making their efforts.

Earlier, Chief General Manager - Nabard - Sarita Arora highlighted the achievements of the bank and said the bank would make all efforts to achieve its targets.

The apex development, which came into being on July 12, 1982 after the Parliament through an act in 1981 approved the setting up of Nabard, promotes sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.