The National Bank for Agriculture and Rural Development (NABARD) on Thursday projected overall credit potential of Odisha at Rs.58,882.39 crore for priority sectors during the year 2016-17 – a jump of 23.3 per cent over last year.
The bank had made a credit projection of Rs.47,756.44 crore during 2015-16.
“The aggregation of the district-wise potential linked credit plan (PLPs) for 2006-17 projects a credit flow of Rs.58,882.39 crore for the State indicating an increase of 23.3 per cent over the last year. Out of total credit potential for the State under total priority sector, Rs.32,207.90 crore has been assessed under agriculture,” announced NABARD Chief General Manager S. K. Kale, addressing the State Credit Seminar 2016-17.
“Credit potential under agriculture constitutes 54.7 per cent of total priority sector. Out of total credit of Rs. 32,207.90 crore estimated under agriculture, Rs.29,710.95 crore (92.2 per cent is under farm credit), which comprises of both crop loans and term loans for agriculture and allied activities,” he said.
Focusing on 2015 drought in Odisha, the NABARD has suggested measures which have potential for providing perennial risk heading and coping mechanism. The bank recommends formation of producer organisations by taking small and marginal farmers for better marketing of produces, amendment of tenancy act for financing share croppers and popularisation of lift irrigation projects for mitigating crop failure.
Inaugurating the credit seminar, Chief Secretary A. P. Padhi expressed concern over low credit to GSDP (Gross State Domestic Product) ratio in the State.
“While economists want 100 per cent credit to GSDP ratio, the same is ridiculously low at 10 in Odisha compared to 40 per cent in Maharashtra. The credit to GSDP ratio in Kandhamal district is as low as 2 per cent. There is huge scope for lending especially in agriculture sectors. Bankers must have to lend and make the State grow,” said Mr. Padhi.
The Chief Secretary also came down on slow progress on financial inclusion. “We had set a target to make banking service available in all gram panchayats within four year time last year. But a recent review revealed the achievement at 10 per cent. What kind of financial inclusion we are talking about when a person travel 25 km to just to access his bank account,” he observed.
Development Commissioner R. Balakrishnan and Regional Director of Reserve Bank of India P. K. Jena also spoke on the occasion.
Recommends several steps for better marketing of farm produce, mitigating crop failure

Source : The Hindu