National Bank for Agriculture and Rural Development (NABARD) has estimated the credit potential for Karnataka at ₹3.97 lakh crore for 2024-25.
The credit potential for the agriculture sector, including the farm credit of ₹1,54,11738.36, has been estimated at ₹1.85 lakh crore (46% of the total credit plan). The credit for MSME sector has been estimated at ₹1.58 lakh crore (40%) and other priority sector activities at ₹0.54 lakh crore (14%).
PLPs for all 31 districts
NABARD prepared Potential Linked Credit Plans (PLPs) for all 31 districts of the State after detailed consultations with various line departments of the government, banks and other stakeholders, to map credit potential under the priority sector.
T. Ramesh, Chief General Manager (CGM), NABARD, said that estimated a credit potential of ₹3.97 lakh crore for priority sector lending in Karnataka during 2024-25 which is 10.67% higher than the previous years’ credit projection.
It said the total number of land holdings in the State increased from 75.80 lakh (2010-11 Census) to 86.80 lakh in 2015-16, operating an area of 118.05 lakh hectares with the share of small and marginal farmers at 80%. The average size of land holding is 1.36 hectare in Karnataka is marginally higher than the all India average of 1.08 hectare.
NABARD organised the State Credit Seminar for Karnataka on Tuesday and it was chaired by Shalini Rajneesh, Additional Chief Secretary and Development Commissioner.
He said NABARD has been complementing the efforts of State in the wake of the severe drought situation, by extending financial support of ₹990 crore for 119 irrigation projects and ₹611 crore for drinking water projects under RIDF. It had sanctioned ₹290 crore under the Micro Irrigation Fund for promoting sustainable irrigation practices, during the current year.
FOPs accelerator project
NABARD is piloting the Farmers Producers Organisations (FPOs) Accelerator Project with 30 FPOs from across the State, for establishing better backward and forward linkages and leading the way for other FPOs in the State.
He said the process of computerising 5,491 Primary Agricultural Cooperative Societies (PPACS) in the State to enable cooperative societies to offer seamless services to member farmers was under way.
