AP’s Priority Sector Lending Potential for 2021-22 pegged at ₹2.31 lakh crore

Amaravati, March 26:

The National Bank for Agriculture and Rural Development (NABARD), the apex development bank of the nation for agriculture and rural development, organised the State Credit Seminar for 2021-22 at AP Secretariat, Velagapudi on 26 March 2021.

Mr Kurasala Kannababu, Minister for Agriculture & Cooperation, Marketing & Food Processing, of Andhra Pradesh, was the Chief Guest of the Seminar and released the State Focus Paper prepared by NABARD. While congratulating NABARD for its proactive role in fostering rural prosperity, he acknowledged the various challenges facing the agrarian sector and shed light upon the roadmap for achieving sustained growth in farm incomes and reducing the vulnerability of farmers. He appreciated NABARD for supporting the State’s initiatives aimed at creating infrastructure in agriculture, irrigation, social and rural connectivity sectors. The Minister exhorted the bankers to keep themselves abreast of the various programmes / plans of the Government and ensure that the credit plan prepared by them for 2021-22 factors these initiatives. He stressed on augmentation of Credit Flow to the Tenant Farmers which is also a thrust area of the GoAP. In order to build vibrant and sustainable farmer collectives, while assuring the support of the GoAP to provide an enabling environment, he stressed on the need for building the skills and capacities of the farmers.He also requested the banker to support creation of farm gate infrastructure under AIF and also for establishment of Janata Bazaars.

Mr Aditya Nath Das, IAS, Chief Secretary, GoAP while commending the banking fraternity for being the “Partners in progress” of the State, stressed upon the continuing need of timely and adequate availability of credit to all sections of the society to ensure that each and every Citizen is also part of the growth story of the State.

Ms. Poonam Malakondaiah, IAS, Special Chief Secretary indicated that State is committed in its efforts to Doubling of farmers’ income and outlined the various initiatives like establishment of Rythu Bharosa Kendras and Custom Hiring Centres, formulation of State level policy for food processing and the efforts being taken for setting up of secondary food processing cluster. She also stressed upon adequate credit flow to fisheries sector.

Mr.Sundaram Shankar, General Manager, Reserve Bank of India, requested the bankers to align their credit plan as per the potential assessed by NABARD for the year 2021-22. He also requested the banker to ensure credit flow to new MSME taking advantage of the recent guidelines issued by RBI.

Mr Sudhir Kumar Jannawar, Chief General Manager of NABARD’s AP Regional Office, while addressing the gathering, NABARD has cumulatively extended financial support of ₹27,992 crore during 2019-20 and more than ₹32,000 crore so far in the current fiscal to GoAP, various corporations and banks in the state. He informed that NABARD has dovetailed its developmental agenda with the policy directives of the State for achieving faster and inclusive sustainable development.

Mr Sudhir Kumar explained that estimating the credit potential is an annual exercise undertaken by NABARD in each State. The State Focus Paper (SFP) prepared by NABARD, which has projected a credit potential of ₹2.31 lakh crore under priority sectors for Andhra Pradesh for 2021-22, an increase of 9% over the potential assessed for FY 2020-21 by NABARD. Credit potential for Agriculture sector has been assessed at ₹1.58 lakh crore, forming 68% of the total potential identified under priority sectors. Crop loan potential of ₹1.13 lakh crore has been identified. Potential for agriculture term loan (ATL) has been assessed at ₹31,805 crore, with major components being animal husbandry (₹12,606 crore), farm mechanisation (₹3,768 crore), fisheries (₹3,451 crore) and horticulture (₹2,624 crore). With regard to agri infrastructure and ancillary activities, potential of ₹12,716 crore has been assessed, with food processing (₹3,766 crore) and construction of storage and marketing infrastructure (₹2,574 crore) being the major components. ₹47,402 crore credit potential has been assessed for MSME sector and ₹26,194 crore under other priority sectors, with major components being housing (₹14,335 crore), export credit (₹2,881 crore) and education (₹1,584 crore). The credit potential assessed acts as a road map to banks for extending loans to priority sectors as mandated by RBI and for Government Departments for providing funds for bridging key infrastructure gaps.

Mr B Uday Bhaskar, GM NABARD made a detailed presentation on the sector-wise credit potential assessed, issues and critical interventions that need to be addressed in order to achieve the credit potential assessed for 2021-22. He also informed that the theme for SFP for 2021-22 is “Collectivization of Agricultural Produce for enhancing Farmer’s Income”, keeping in view the benefits of aggregation of farmers into Farmer Producer Organisations (FPOs). He informed that 293 FPOs have already been promoted by NABARD in the State covering more than 1 lakh farmers, which is in line with the vision of the Government. The new Central Sector Scheme for promotion of 10,000 FPOs is a huge step in this direction by Government of India, with NABARD being an active partner in the endeavour. There exists tremendous potential for the formation and nurturing of new FPOs to encourage collectivization for increasing the income of farmers and boosting the overall growth of the agricultural economy.

Ms K Sunitha, Principal Secretary, Ms A R Anuradha, Principal Secretary, Mr Madhusudhan Reddy, Special Secretary and Mr A Babu, Registrar of Cooperative Societies also spoke.

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