National agriculture and rural refinance body has estimated that rural Gujarat will need Rs 1,57,779 crore for the year 2019-20, a rise of 23.45 per cent compared to Rs 1.28 lakh crore in the previous fiscal. This is significant compared to a rise of 10 per cent in the previous fiscal.
National Bank for Agriculture and Rural Development (NABARD), on Wednesday, released its State Focus Paper for Gujarat for fiscal 2019-20.
Accordingly, agriculture will continue to grab a lion's share with Rs 85,995 crore worth of projected credit, a rise of 19.47 per cent compared to Rs 71,982 crore in the previous fiscal.
Of these, Term Loans, used for creating assets is pegged at Rs 31,303 crore, a rise of 42.94 per cent annually. While Crop Loan, used for day to day expenses has risen marginally to Rs 54,692 crore from Rs 50,083 crore. The credit potential for small businesses is estimated at Rs 53,676 crore, a rise of 48.48 crores over 36,151 crores in 18-19, while other priority sectors are expected to generate a demand for Rs 18,108 crore worth of credit, a rise of over 23 per cent over Rs 14,682 crore in 18-19. The plan for the state has been prepared after preparing a detailed plan for all the districts in the state.
Sunil Chawla, CGM, NABARD appealed to the banks to ensure adequate credit flow as envisaged in the State Focus Paper, particularly for term loans in the agriculture sector. He also said NABARD has been widening its overall developmental spectrum in the state through Farmer Producer Organizations (FPOs) and E- Shakti (digitisation programme of SHGs). NABARD had conducted an intensive exercise last year in 3098 villages of 15 districts for promoting model Farmers' Producers' Organisations (FPOs) that will undertake business activities.