Nabard to pay 1.2 trillion rupees for farm loan to farmers in fiscal year

In a bid to support the agricultural sector amid the COVID-19 crisis, the National Bank for Agriculture and Rural Development said on Thursday it was aiming to disburse a harvest loan of Rs 1.20 lakh crore to farmers to cover production expenses for this fiscal year.

The agricultural financial institution Apex Nabard disbursed a loan of Rs 90,000 crore every year at a concessional rate.

“It has been increased to Rs 1.20 lakh crore for this fiscal year. Of this amount, Rs 40,000 crore has already been disbursed,” said the president of the National Bank for Agriculture and Rural Development (Nabard), GR Chintala.

Speaking at the CII event, he said, the pandemic has seen a paradigm shift in the functioning of the agricultural sector, and with the help of Rs 1 lakh crore Agriculture Infrastructure Fund as part of the package Atmanirbhar Bharat will promote infrastructure for the sector.

Under the program, 10,000 crore rupees has been allocated for the current fiscal year and 30,000 crore rupees annually for the next three years, Nabard said in a statement.

“It will play a crucial role in providing credit for the establishment of essential agricultural infrastructure at the ground level and it will create 25 lakh tonnes of capacity under the Agricultural Infrastructure Fund. We also work in partnership with most commercial banks to provide credit for food micro-processing. units associated with local units in Kirana, ”Chintala said.

With the upcoming launch of the program to promote 10,000 agricultural producer organizations (OPAs) in the country, the agricultural sector will experience quality production combined with an industry-centered vision, he added.

Speaking at the event, Minister of State for Agriculture Parshottam Rupala suggested Nabard digitize the crop loan subsidy scheme process, so that farmers can set loans to zero for cent in real time and transparently.

ITC Chairman and CEO Sanjiv Puri said the COVID-19 pandemic has taken businesses out of the survival phase into the recovery phase, and now after COVID-19 there will be ” next normal ”where innovative, digitally driven reforms will change trends forever.

“A key achievement has been the speed and integrity of the digital penetration that has been achieved, which would otherwise have taken years to achieve. In fact, 10 years of digital penetration has been achieved within weeks of the pandemic,” says Puri.

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