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

The National Bank for Agriculture and Rural Development (NABARD) of Bihar recently stated that it has produced a Potential Linked Plan (PLP) for 2021-22 to streamline credit flow to the state's 38 districts.

Furthermore, Sunil Kumar, the CGM, stated on Wednesday that the potential for loan flow has been analyzed for each sector, including crop, animal husbandry, dairy, poultry, fishery, goat rearing, plantation, and horticulture, farm Mechanisation, godowns, and self-help group lending.

Sunil Kumar told the media that an aggregate of the projections will be given at the state credit seminar on January 15.

“The Covid-19 pandemic has adversely impacted the economy. The only silver lining is the performance of the 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 motorcycles indicate demand in rural areas,” he said.

“There are several gaps in the supply chains and resource management of the Agri sector, starting from input supply to post-harvest management, marketing, and credit supply. Banks need to actively provide credit for the 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 the state government at a 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.