The allied activities receive only 10 per cent of the total agricultural credit while they contribute lion’s share of 40 per cent to the agricultural output
Department of Financial Services (DFS) reviewed the progress of credit disbursement to agri-allied activities such as animal husbandry, dairying and fisheries with Public Sector Banks (PSBs), NABARD and State/ UT Level Bankers’ Committee. Representatives of State Governments / UTs, Department of Animal Husbandry & Dairying and Department of Fisheries also participated in the discussions.
Government urged PSBs to take all necessary steps to ensure that respective targets are met during the current financial year, and stressed on the State Governments to facilitate banks in improving flow of credit to these sectors.
Experts underscored the importance of the allied sector in driving agricultural growth and its employment potential in rural area and highlighted the trend of regional disparity in credit disbursement in allied activities. The Government therefore directed banks to conduct regional level assessment/meetings to ensure disbursement of credit in all areas as all regions have huge potential in allied activities. NABARD is supposed to play a pivotal role in this regard, in terms of coordination with state line departments and LDMs in identification of fish farmers and providing them benefit of KCC scheme.
Government of India’s focus on seamless access to affordable credit to allied sector was brought to light and all stakeholders have been urged to take all necessary steps to increase credit flow to the sector.
