Agriculture Finance : Centre requested for Rs 1,300 crore from NABARD for Odisha

Odisha Government has requested the Centre to ask NABARD to sanction Rs 1,300 crore to Odisha State Cooperative Bank as early as possible so that drought hit farmers could get the help.

According to the policy of NABARD 45 per cent of the crop loans to be provided by the Cooperative Banks should come as refinance from them to Odisha State Cooperative Bank, the limit falls short of Rs 1300 crore against eligibility norms of NABARD," Chief Minister Naveen Patnaik said in a letter to Union Finance Minister Arun Jaitley.

Against the programme of Rs 10,000 crore for disbursement of crop loans by Cooperative Banks, NABARD has sanctioned a refinance of Rs 3,200 crore only, Patnaik said.

Farmers affected by drought have been sensitised by the state government to go for cultivation of various crops during the current Rabi season, he said it is expected that the Cooperative Banks should provide them with adequate credit for the purpose.

Therefore, NABARD refinance is essentially required to enable the Cooperative banks led by Odisha State Cooperative Bank to help drought affected farmers.

Cooperative banks in the state have been playing a pivotal role in dispensation of crop loans, as around 70 per cent of the credit for the purpose is provided by these organisations, since the resources of the cooperative banks are limited, they depend on NABARD refinance for the purpose, Patnaik added.

Source: http://economictimes.indiatimes.com