20% rise in credit potential for priority sector in Gujarat: NABARD

Compared to projections made for 2022-23, there is an almost 30 per cent and 13 per cent rise in credit projections made for MSMEs and agriculture (Rs 1.27 lakh crore) respectively.

“The agriculture sector in the state faces various challenges like low productivity, irrigation facilities, supply-chain gap, low mechanisation, high salinity, undulated landscape, etc. It is felt that some of these challenges can easily be tackled by making suitable strategies by the state government and putting these in place by involving all stakeholders like banks, line departments, voluntary associations etc,” stated Gyanendra Mani, chief general manager, NABARD.

Pointing to low crop productivity, NABARD states “skewed applications of fertilisers and pesticides, low seed replacement rate and inadequacy of quality seeds are some of the major constraints” in achieving higher productivity.

“The increasing number of tenant or landless farmers or oral lessees and inadequate availability of institutional credit to them, hampers productivity levels. Banks need to explore Joint Liability Group mode of financing to tenant farmers,” stated NABARD, asking the state government to frame a policy to make tenant farmers eligible for institutional finance.

In order to reduce the high cost of agricultural production in Gujarat, NABARD has suggested to the state government to provide costly equipment like tractors, rotavator, laser leveller and harvester through government departments, NGOs or through PPP mode. (EOM)