Nabard hikes plan outlay for state by 27%
Moreover, the state needs to strengthen infrastructure relevant for agriculture and rural development.
By TNN |
PUNE: NABARD has increased its total plan outlay for Maharashtra for 2007-08 by 27% to Rs 20,972 crore. In spite of the increase in the outlay, the country���s apex re-finance entity has expressed reservations over disbursal of agriculture-related credit in the state.
Highlighting the decline in real terms of agriculture income, N Srinivasan, chief general manager, Nabard, Pune, said per hectare income from agriculture has been declining every year, from 2001-02. Moreover, the state needs to strengthen infrastructure relevant for agriculture and rural development.
���From a high of Rs 13,484 in 2001-02, per hectare income from agriculture has declined to Rs 12,173 in ���04-05, in real terms. The state domestic product from agriculture has declined from Rs 23,774 crore in ���01-02 to Rs 21,110 crore in ���04-05. The decline on both counts has been continuous. Regional variations in income have also been sharp. Marathwada and Amravati division of Vidarbha had the lowest per hectare incomes, less than 60% reported by Konkan, which has the highest in the state,��� Mr Srinivasan said.
Nabard���s past experience is that there is a considerable gap in the potential linked credit plans (PLPs), which they prepare, and the achievements under the service area credit plans. This indicates that the available potential is not being exploited to the full. Mr Srinivasan was critical of the performance of the business levels of bank branches in the rural areas, since agricultural credit flow in the state is low compared to other better-performing states. Hence, he suggested that the banking sector should take up new initiatives and innovate products to ensure achievement of financial inclusion.
���The regional variations in credit flow underline the credit-starved existence of dryland farmers in Marathwada and Vidarbha,��� Mr Srinivasan said. He urged for an informed dialogue within the state government for the release of pasture land accidentally converted to forests.
���Usufructuary rights for cutting grass from forest lands should be allowed in a hassle-free manner,��� he said, since such measures would ensure that the dairy and poultry sectors get the raw material easily. Nabard���s potential linked credit plan covers 33 districts in the state, excluding Greater Mumbai and Navi Mumbai.
The aggregate potential for all the districts amounted to Rs 20,972 crore for 2007-08, of which Rs 10,381 crore has been targeted at short term crop production loans, Rs 4,606 crore for investment credit for agriculture and allied activities including agro processing. Rs 2,107 crore has been ear marked for non-farm activities and Rs 4,312 crore for other priority sector activities.
Highlighting the decline in real terms of agriculture income, N Srinivasan, chief general manager, Nabard, Pune, said per hectare income from agriculture has been declining every year, from 2001-02. Moreover, the state needs to strengthen infrastructure relevant for agriculture and rural development.
���From a high of Rs 13,484 in 2001-02, per hectare income from agriculture has declined to Rs 12,173 in ���04-05, in real terms. The state domestic product from agriculture has declined from Rs 23,774 crore in ���01-02 to Rs 21,110 crore in ���04-05. The decline on both counts has been continuous. Regional variations in income have also been sharp. Marathwada and Amravati division of Vidarbha had the lowest per hectare incomes, less than 60% reported by Konkan, which has the highest in the state,��� Mr Srinivasan said.
Nabard���s past experience is that there is a considerable gap in the potential linked credit plans (PLPs), which they prepare, and the achievements under the service area credit plans. This indicates that the available potential is not being exploited to the full. Mr Srinivasan was critical of the performance of the business levels of bank branches in the rural areas, since agricultural credit flow in the state is low compared to other better-performing states. Hence, he suggested that the banking sector should take up new initiatives and innovate products to ensure achievement of financial inclusion.
���The regional variations in credit flow underline the credit-starved existence of dryland farmers in Marathwada and Vidarbha,��� Mr Srinivasan said. He urged for an informed dialogue within the state government for the release of pasture land accidentally converted to forests.
���Usufructuary rights for cutting grass from forest lands should be allowed in a hassle-free manner,��� he said, since such measures would ensure that the dairy and poultry sectors get the raw material easily. Nabard���s potential linked credit plan covers 33 districts in the state, excluding Greater Mumbai and Navi Mumbai.
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The aggregate potential for all the districts amounted to Rs 20,972 crore for 2007-08, of which Rs 10,381 crore has been targeted at short term crop production loans, Rs 4,606 crore for investment credit for agriculture and allied activities including agro processing. Rs 2,107 crore has been ear marked for non-farm activities and Rs 4,312 crore for other priority sector activities.
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