1. Agriculture World

Good News for Farmers: NABARD to Provide Loan in Agri Sector

Pronami Chetia
Pronami Chetia

The National Bank for Agriculture and Rural Development (NABARD), Bihar has recently announced that it has prepared a Potential Linked Plan (PLP) for 2021-22 to facilitate credit flow to agriculture sector in all 38 districts of the state.

Moreover, the chief general manager (CGM) Sunil Kumar on Wednesday said that the potential for credit flow has been assessed for each sector like crop, animal husbandry, dairy, poultry, fisheries, goat rearing, plantation and horticulture, farm Mechanisation, godowns and self-help group lending among others.

An aggregation of the projections will be presented in the state credit seminar scheduled on January 15, told Sunil Kumar to the media.

“The Covid-19 pandemic has adversely impacted the economy. The only silver lining is the performance of agriculture sector, which has witnessed positive growth during the first half of the current fiscal. Foodgrain production reached an all-time high and the higher sales of tractors and motorcycle indicate demand in rural areas,” he said.

“There are several gaps in the supply chains and resource management of the agri sector, starting form input supply to post-harvest management, marketing and credit supply. Banks need to actively provide credit for agriculture sector in Bihar,” the CGM said.

Amid the corona pandemic, the bank provided refinance to commercial banks, regional rural banks and cooperative banks.

“We also provide loans to state government at concessional interest rate of 2.75% per annum. During 2020-21, NABARD has sanctioned projects worth Rs 1,833 crore so far, which is expected to create employment of about 1,90,000 man days,” he said.

As per reports, projects related to rural drinking water supply, roads and water resources have been sanctioned. The total disbursement under RIDF during the current year was Rs. 1,605 crore.

"We have already surpassed the disbursement of Rs4,202 crore till date and hope to cross an aggregate credit support of Rs 5,000 crore by March 31, 2021,” he added.

Total disbursement by NABARD (refinance and RIDF) was Rs 4,147 crore last year, he said.

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