Press Release
Farmers first, says NABARD Chairman
New Delhi: NABARD is a name synonymous with agriculture and most of its developmental
and promotional initiatives aim towards benefiting farmers, especially small and marginal
ones. Elucidating this further, Dr Harsh Kumar Bhanwala, Chairman, NABARD, said,
“NABARD has sanctioned ₹1403.37 crore to a basket of innovative projects directly
impacting the farming community across the country out of its various development
funds such as Watershed Development Fund, Financial Inclusion Fund, Tribal
Development Fund, etc. during 2012-13. This support is primarily grant based
support to our channel partners and works towards a more equitable, a more
financially inclusive India. Our primary objective has been on developing
collaborative models of regional development harnessing best practices evolving in
various parts of the country.”
The break-up of disbursements shows an expansive coverage of major development areas
like watershed development, micro finance, tribal development and financial inclusion.
The details are as under:
Watershed Development Fund ₹ 224.11
MFDEF Expenditure ₹ 107.79
Tribal Development Fund ₹ 606.14
Financial Inclusion Fund ₹ 408.39
Financial Inclusion &Technology Fund
₹ 17.14
Farmers Technology Transfer Fund ₹ 39.79
Total ₹ 1403.37
In the last fortnight alone, NABARD has committed ₹1,000 crore under a new scheme
called Rejuvenation of Orchards in Jammu and Kashmir Scheme with a phasing of five
years for enabling apple growers to get better returns. It has sanctioned 1,112 crore for₹
creation of 1,336 warehouses in the country and 6,064 crore for 33 projects under₹
agriculture and allied sector (irrigation and drainage projects) while another 250 projects
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
have been sanctioned for improving rural connectivity (roads and bridges) and 804
projects under social sector (schools, primary health centres, drinking water projects,
etc) in the country.
NABARD's refinance support in 2012-13 accounted for 40.87% of all India crop loan
disbursements by cooperatives and Regional Rural Banks (RRBs). A target of ₹80,000 crore
has been fixed under Short Term for financing Seasonal Agricultural Operations (SAO) of
Cooperative Banks and RRBs for 2013-14. Against this target, an amount of ₹55,322 crore
has been utilised so far, Dr Bhanwala added. The State Cooperative Banks (StCBs) which
received major refinance were those of Punjab, Rajasthan, Madhya Pradesh, Maharashtra
and Andhra Pradesh while the RRBs in Andhra Pradesh, Uttar Pradesh, Rajasthan and
Karnataka accounted for a major share.
“Providing a viable space to Primary Agriculture Cooperative Societies (PACS),” Dr
Bhanwala, stated “is critical to the very survival of these last mile credit outlets.
NABARD has therefore extended financial support to PACS to transform them into Multi
Service Centres (MSCs) for meeting the various requirements of the farmers. This
addresses the imminent need to develop PACS as a One Stop Shop unit for meeting the
overall needs of the farmers.” During 2013-14, financial assistance to the tune of ₹191.03
crore was sanctioned and ₹55.41 crore was released mainly for establishment of agro
service centres, rural retail outlets, agri marketing infrastructure etc.
NABARD has recently developed an additional line of finance for Central Cooperative
Banks (CCBs) to enable them to raise financial resources other than StCBs which is
intended to serve the entire co-operative structure instead of focusing on a single layer
of the co-operative system. NABARD has also designed a new product to provide
refinance assistance to StCBs/CCBs against pledge of sugar stocks of co-operative and
private sugar factories.
In addition to cooperative banks, NABARD also provided a separate line of credit to
Marketing Federations/Co-operatives/Corporations to promote the procurement and
marketing of agricultural produce and other agricultural activities. During 2013-14, short
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
term loan of ₹250 crore was sanctioned to Marketing Federations/Corporations for
procurement of paddy through PACS and disbursement stood at ₹285 crore.
In its endeavor to have a direct interface with Producers Organisations (POs)/ collectives
in a comprehensive manner, NABARD has sanctioned an assistance of ₹43.069 crore to 33
POs and disbursed an amount of ₹16.95 crore. The major activities include aggregation of
farm produce, processing and marketing of dairy, fishery, organic vegetable, marketing
infrastructure and eco-tourism, etc.
NABARD is also reaching out to the unbanked by promoting the RuPay-enabled Kisan
Credit Card. “The Kisan Credit Card (KCC) scheme has emerged as an innovative credit
delivery mechanism to meet the production credit requirements of the farmers in a
timely and hassle-free manner,” said Dr Bhanwala.
Farm Innovation and Promotion Fund (FIPF) and Farmers’ Technology Transfer Fund
(FTTF), two funds created specifically to encourage innovations and transmission of best
agri practices in the agri community have seen an inflow of very encouraging proposals.
185 projects spread across 24 states have been sanctioned under FIPF at the end of 31
December 2013, with cumulative assistance of ₹79.44 crore, directly benefiting around
1.50 lakh farmers. FTTF, on the other hand has encouraged setting up of Farmers' Clubs,
Pilot Project for Lead Crops, System of Rice Intensification, Master Farmers Training
Programme, Village Development Programme, Capacity Building for Adoption of
Technology, Farmers' Training and Rural Development Centre.
Further, a new line of refinance support was opened for Public Sector Commercial Banks
and RRBs during 2011-12 to finance the short term operations of the Primary Agricultural
Credit Societies (PACS) wherever the District Central Cooperative Banks/ State
Cooperative Banks were weak and unable to provide support to PACS. The State Bank of
Hyderabad has availed this facility in Andhra Pradesh and Karnataka, and a sum of
₹129.39 crore was released by NABARD out of the revised target of ₹65,000 crore.
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
Graphical representation of disbursements in various sectors :
1. Utilisation of ST (SAO) refinance for last five years:
2. Total macro picture about the financial support by NABARD:
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
2008-09 2009-10 2010-11 2011-12 2012-13
0.00
10000.00
20000.00
30000.00
40000.00
50000.00
60000.00
70000.00
16803.27
24216.45
33399.75
48000.74
64968.16
Max.Utilisation
3. Crop Loans refinance support by NABARD
4. Investment credit Refinance by NABARD
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
5. Support provided by SPD under RIDF
6. Support provided for micro finance development by NABARD
Figures for 2012-13 :
Number of SHGs credit Linked :12.20 Lakh ; Loans disbursed : Rs. 20,585 Cr. __________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
7. Progress under Watershed Development Fund :
__________________________________________________________________________
National Bank for Agriculture and Rural DevelopmentHead Office: Plot No. C-24, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
www.nabard.org
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