|
NABARD's role in horticulture development
By N Guite
National Bank of Agriculture and Rural Development (NABARD) as an apex development bank of the country for supporting and promoting agriculture and rural development was set up on July 12, 1982, under an act of Parliament by initially merging the agriculture credit department and rural planning and credit cell of Reserve Bank of India (RBI) and the entire undertaking of Agricultural Refinance and Development Corporation (ARDC).
The mission of NABARD is promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives is achieved through credit functions and non-credit (Promotional, developmental and regulatory) functions.
Credit function
NABARD provides by way of refinances, short-term, medium-term and long-term loan assistance for periods extending upto 25 years to eligible institutions.
Eligible Institutions
a) Commercial Banks
b) State Co-operative Banks
c) Regional Rural Banks
d) State Land Development Banks
Purpose:
Short-term refinance;
a) Agricultural production operations and marketing of crops by farmers and farmer's cooperatives, etc,
b) Marketing and distribution of inputs like fertilizers, seeds, pesticides, etc.
c) Production and marketing activities of village and cottage industries, handicrafts, handlooms, artisans, small-scale and tiny industries and other rural non-farm enterprises.
Medium and long-term refinance;
a) Investment in agriculture and allied activities such as minor irrigation, farm mechanization, land development, soil conservation horticulture, plantation, diary, poultry, piggery, fishery, forestry, setting up of storage and market yards, agro-processing etc.
b) Investment activities of artisans, small-scale industries, tiny sector industries, village and cottage industries, handicrafts, handlooms power looms, etc.
c) Activities of voluntary agencies/self help groups of rural poor.
d) Investment in share capital/securities of institutions concerned with agriculture and rural development.
Non-credit functions
To reinforce the credit functions and make credit more productive, NABARD undertakes a number of developmental activities, regulatory and promotional activities. Apart from its core function, NABARD has taken up new functions in the recent past which is of relevance to horticulture.
- Direct credit support for Rural Infrastructure Projects
NABARD provides direct finance to state governments and state owned corporations to enable them to complete various types of rural infrastructure projects so as to unlock the sunk investments. The coverage under the Rural Infrastructure Development Fund (RIDF) has been extended for execution of both on-going incomplete projects and new projects to the Panchayati Raj Institutions (PRIs), self help groups and NGOs.
Significant number of rural infrastructure projects have been covered which are of relevance to horticulture, viz, watershed management, rural market yard, cold storage, rural godowns, rubber plantation, soil conservation, etc.
- Scheme for setting up of Agriclinics and Agribusiness centers by agriculture graduates.
The ministry of agriculture, government of India in association with NABARD has launched a unique program to take better and advanced methods of farming to the farmers across the country. The scheme is aimed at providing gainful employment to agriculture graduates in new emerging areas in agriculture and providing supplementary sources of input supply and services, for which, by and large, farmers presently depend upon state agencies.
Agriclinics are expected to provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection, post-harvest value-added options, key agricultural information (including perhaps even internet-based weather forecast), price trends, market news, risk mitigation and crop insurance, credit and input access, etc, whereas Agribusiness Centers are envisaged to provide input supply, farm equipments on hire and other services. The scheme is open to agriculture graduates/graduates in subjects allied to agriculture like horticulture, veterinary and animal husbandry, forestry, fishery, etc. An individual or a group of individuals is eligible for availing bank loans. The outer ceiling for the cost of the projects is Rs 10 lakh and for joint/group projects, it in Rs 50 lakhs, pro-rata.
NABARD provides 100% refinance support to banks under the scheme.
As an integral part of this nationwide initiative, specialized training will be provided to the graduates interested in setting up such a center. The two month training provided free of cost will be offered by select institutes across the country on entrepreneurship and business management as well as skill improvement modules in chosen areas of activity.
- Scheme for Soft Loan Assistance for Margin Money
The objective of the scheme is to provide margin money assistance to promoters/entrepreneurs who have the requisite talents and skill of entrepreneurship but lack the necessary monetary resources to meet the margin money requirement. The assistance/loans to banks from out of the soft loan margin money assistance fund of NABARD is interest free and limited to 50% of margin prescribed by banks. However, financing banks will be allowed to levy 3% service charge on the margin money loan to the entrepreneurs. The loan is to be recovered in suitable installments after repayment of the term loan.
- Scheme for Financing Farmers for Purchase of Land for Agricultural Purpose:
NABARD has designed a scheme for financing farmers for purchase of agricultural land for which hitherto no bank assistance was available. The step is taken with a view to boosting agricultural production. Under the scheme, term finance could be availed of by small and marginal farmers, share croppers and tenant cultivators to purchase agricultural land as well as fallow and wasteland to develop and cultivate it. This is to enable beneficiaries to diversify their present activities and also to take up allied activities.
Refinance is extended to banks by NABARD under both its Automatic Refinance Facilitity (ARF) and pre-sanction procedure.
- Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storage and Storages for Horticulture Produce.
In order to overcome the problem of weak post harvest storage and marketing infrastructure and prevent post harvest losses, a new credit linked capital subsidy scheme for construction of cold storages and storage godowns launched by GOI is being implemented by NHB through NABARD since 1999-2000.
Under this scheme NABARD would provide refinance to all eligible institutions upto 90% of the amount financed by the banks for which interest to be charged to financing banks is presently at 8.5%. The subsidy (back-ended) would be available upto 33.33% of the project cost in north-eastern region subject to a maximum of Rs 60 lakh.
Insurance scheme for horticulture crops
Implementation of National Agricultural Insurance Scheme (NAIS)/Rashtriya Krishi Bima Yojana (RKBY)
With a view to obviating the deficiencies observed in the implementation of the earlier Comprehensive Crop Insurance Scheme (CCIS) and broad basing the crop insurance scheme, GOI has launched the RKBY from Rabi 1999-2000 after consulting GIC, banks, RBI, NABARD and other agencies concerned.
Objective of the scheme: To provide insurance coverage and financial support to the farmers in the event of failure of any notified crop(s) as a result of natural calamities, pests and diseases and to encourage progressive farming practices, higher technology etc. besides stabilizing farm income particularly in disaster years.
The salient features of RKBY;
- The scheme will be available to all the farmers irrespective of size of holdings.
- The scheme will be compulsory for loanee farmers and optional for others.
- There is no restriction on the total sum insured.
All food crops, cash crops and horticulture crops were made eligible for the risk hedging under the NAIS scheme.
The premium rate would vary with crops facing increased risk kept higher than those exposed to fewer hazards like wheat and Rabi crops in general. In case of horticultural crops, actuarial rates will be charged. Small and marginal farmers will be entitled to the subsidy of 50% of the premium charged from them.
In the event of localized calamities like hailstorms, landslides, cyclone, flood, etc, all affected farmers will be compensated on individual basis under the scheme.
The sum insured extends upto the value of threshold yield of the crop with an option to cover upto 150% of average yield of the crop on payment of extra premium.
In the case of loanee farmers the sum insured would be at least equal to the amount of crop loans advanced and the insurance charges shall be an additional to the scale of finance for the purpose of obtaining loans.
Crop loans disbursed under Kisan Credit Card Scheme (KCC) for notified crops are covered under
RKBY.
NABARD has issued to all the financing banks the guidelines and operational instructions with regard to the implementation of RKBY with a request to issue suitable instructions to their field level functionaries.
(Courtesy:
The Imphal Free Press) |
Welcome! 
International
Features
