In the State Credit Seminar organised by Nabard in Chandigarh, the sector specific issues were put forth to realise the credit potential estimates. Manik B Sonawane, financial commissioner, Haryana, released the State Focus Paper for the year 2009-10.
Sonawane said that of the Rs 30,914 crore projected, crop loan share stands at 55% (Rs 17,002 crore), followed by agricultural and allied sector term loan (capital formative investment credit) at 11.5 % (Rs 3,568 crore), non-farm sector (NFS) at 16 % (Rs 4,892 crore) and other priority sector at 17.5% (Rs 5,452 crore).
Given the fertility of the land and asset position of the farmers, Haryana farmers need for short term (seasonal agricultural operations) is expectedly high. SK Mitra, executive director, Nabard, highlighted the potential assessed for activities such as minor irrigation (Rs 223 crore), farm mechanisation (Rs 830 crore), dairy (Rs 528 crore), plantation and horticulture at Rs 92.5 crore and rural non-farm sector at Rs 4,787 crore. He also mentioned that farmers clubs would cross the 500 mark in Haryana soon; the total number of Haryana self-help groups linked so far stands at 14,500 with bank loan of Rs 110 crore.
The paper duly focuses on the current concerns of the state on the agricultural front, namely, the rapidly depleting groundwater table, minor irrigation, land development, the need for crop diversification, strengthening of post harvest infrastructure and farm mechanisation. Issues such as liquidity support, financial inclusion, kisan credit cards etc have also been discussed in detail in the state focus paper.
To improve the credit absorption capacity of various sectors, Nabard provides loan assistance to the state government to create infrastructure under the Rural Infrastructure Development Fund (RIDF).