The potential linked credit plan, prepared by the National Bank for Agriculture and Rural Development (NABARD), projected credit potential of the banks for 2021-22 in Pudukottai district at ₹ 5,918 crore.
This plan document would act as a guiding tool to bankers for optimal utilisation of credit needs under priority sector lending.
Based on the infrastructure and natural resources available, the potential for credit flow has been assessed at ₹ 5,918 crore for the year 2021-22 as against ₹ 4,719 crore during 2020-21 reflecting an increase of 25 %.
The credit projection for the agriculture sector is ₹ 4,555 crore of which crop loan amounted to ₹ 3,101 crore and term loan ₹ 1,173 crore.
The credit project for the MSME sector amounted to ₹ 276 crore.
Collector P. Uma Maheswari, who released the plan document on Monday, said that the plan had vital inputs required for planning by banks at the branch level.
She advised bankers to increase the credits to MSME sector and term lending in agriculture as there was a good potential to promote animal husbandry, horticulture, farm mechanisation, storage and marketing infrastructure and agro processing.
S. Jayashree, District Development Manager, NABARD, briefed the credit potential of each sector and highlighted that banks should focus on lending under agricultural marketing infrastructures such as scientific construction of rural godowns/ warehouses, cold storages for storing agricultural produces to avoid distress sale and reduce storage losses.
To boost marketing infrastructures, the Agriculture Ministry had recently launched Agriculture Infrastructure Fund and Agricultural Marketing Infrastructure Scheme wherein the focus was on construction of godowns, small cold storages, pack houses, primary processing units – grading and sorting of grains and pulses without change of form. Subsidy was available for setting up these infrastructural facilities through NABARD, she said.
Another focus was on forming and promoting Farmer Producers’ Organisations to combine farming activities and increase their income, Ms. Jayashree said.
R. Ramesh, Lead District Manager, Indian Overseas Bank, Pudukottai, said that the banks should increase their lending to self help groups to achieve the target. Banks should focus on lending under MUDRA, Standup India, District Industries Centre and TAHDCO schemes, a press release from NABARD here said.