The Hindu : Farm sector gets lion's share in credit plan

Online edition of India's National Newspaper
Monday, Mar 29, 2004

Karnataka

Karnataka - Bidar

Farm sector gets lion's share in credit plan

By Our Staff Correspondent

BIDAR, MARCH 28. Banks and other financial institutions in Bidar have planned to increase lending to minor irrigation, dairy development, and horticulture, to make the district "drought-proof".

The annual credit plan released recently by the State Bank of India, the district lead bank, envisages an outlay of Rs. 12.78 crore to minor irrigation, Rs. 4.32 crore to dairy development, and Rs. 1.88 crore to horticulture. The bank had identified potential for tapping groundwater and surface water for irrigation in Bhalki, Aurad, and Basavkalyan taluks, which have been categorised as "white" areas.

The thrust on dairy development was a result of the establishment of chilling, pasteurising, and packaging unit of the Karnataka Milk Federation in Bidar.

"Horticulture needs to be developed in this drought-prone district as the scope for absorption of rural labour is high.

This is because most of the horticulture crops are perennial and can withstand prolonged dry climate," says the plan document. The climatic conditions of the district are suitable for growing guava, pomegranate, grape, vanilla, mango, citrus fruits, sapota, cashew, brinjal, tomato, carrot, cabbage, lady's finger, onion, chillies and ginger.

The plan has earmarked Rs. 85.82 lakh for soil conservation, land reclamation, and farm development. The assistance for self-help groups (SHG) has been pegged at Rs. 6.8 crore. Bidar is on the verge of being declared a SHG district as every village has more than one SHG and nearly 80 per cent of the 8,194 SHGs are credit-linked here. This year, banks plan to link 1594 SHGs.

The largest allocation of Rs. 195.88 crore has been for crop loans to ensure easy credit for farmers. This is an increase of 13.33 per cent over the amount allocated last year. The outlay for sugarcane crop has been increased because of the opening of new sugar factories in Bhalki and Humnabad.

Banks have issued 1.4 lakh Kisan credit cards in the district up to December 2003.In total, agriculture and allied activities will receive Rs. 230.66 crore, which is 80.4 per cent of the priority sector advances. Banks plan to reach 1,75,854 farmers in the district this year.

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