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Indian agriculture has made rapid strides since independence. In taking the annual foodgrain production from 51 million tonnes in the early 1950s to 206 million tonnes at the turn of the century, it has achieved self-sufficiency in food. India is now a major exporter of foodgrains in the world. But the pattern of growth in agriculture has resulted in an uneven development across regions and also across different sectors of the farming community. Capital inadequacy, lack of infrastructural support and demand side constraints such as controls on movement, storage and sale of agricultural products have continued to affect the economic viability of agricultural sector.
Farm Credits
Focussing attention on the farm sector, the National Common Minimum Programme (NCMP) of the UPA Government states that public investment in agricultural research and extension, rural infrastructure and irrigation will be stepped up significantly. It says that the flow of rural credit will be doubled in the next three years and the coverage of small and marginal farmers by institutional lending expanded substantially. In tune with this expectation of the Government of Orissa, NABARD has been able to record a 42 per cent growth in farm sector credit with disbursement of Rs. 1,910 crore as compared to Rs. 1,326 crore during the fiscal year 2003-04. The credit flow for agriculture farm loan which was stagnant at about Rs. 200 crore during the last five years has almost been doubled to Rs 400 crore. During 2004-05, more than 3 lakh new farmers have been assisted as against the target of 2.14 lakh with financial assistance of Rs. 547 crore. Further, over 2.5 lakh farmers have been given relief to the tune of Rs. 256 crore. NABARD has recorded an all-time high refinance disbursement of Rs. 326 crore in Orissa as against the target of Rs. 309 crore. It has prepared 15 model schemes in potential sectors such as dairy, fishery, forestry and horticulture specific to the State.
The Centrally-sponsored scheme of rain water harvesting structures got to a good start in the State with 67 units being financed by the banks with NABARD funding. The sanction of short-term production credit for farm operations reached a level of Rs. 513.80 crore during the year. Over 4.07 lakh new Kisan Credit Cards have been issued in the State during the year, bringing the cumulative coverage of 23.91 lakh farmers in the State.
Partnership
A purposeful partnership between the NABARD and State Government for developing rural infrastructure through the Rural Infrastructure Development Fund (RIDF) is under operation since 1994-95. Under this fund, the developmental financial assistance from NABARD to the State Government for rural infrastructure has recorded a substantial increase with sanctions amounting Rs. 375.66 crore during 2004-05 as against the target of Rs. 331 crore and disbursements amounting Rs. 159.60 crore as against the target of Rs. 149 crore. The major projects so assisted cover rural roads and bridges, irrigation and flood protection. The projects sanctioned during the year will help create an additional irrigation infrastructure in 59,700 hectares, over 1000 km of rural roads and more than 3,000 meters of bridges for enhancing rural connectivity in the State.
The Union Budget of 2004-05 has visualised the financing of Tenant Farmer Groups (TFGs). These groups have been organised in four districts of the State. Banks have extended loans to the new groups. Besides enabling the traditional tenants improve their cropping in a few cases this has led to even capital investments like creation or improvement of irrigation structures.
Irrigation
The programme in the irrigation sector that has been benefiting the small and marginal farmers. Modeled on Participatory Irrigation Management (PIM), the programme has been a major success and holds promise for grounding and stabilising PIM which is being addressed by most States in view of their increasing difficulties to maintain the irrigation projects. NABARD has also been providing a component of 0.5 per cent of the project cost as loan for the capacity building of Water Users’ Association called “Pani Panchayat”. In the year 2004-05, as many as 311 projects have been assisted at a cost of Rs. 18.83 crore. Mandated with the mission of bringing rural prosperity through credit, related services, institutional development and other innovative initiatives, NABARD has been facilitating commercialisation of agriculture in Orissa. It is engaged in improving the rural infrastructure of the State.
*Inputs from PIB, Bhuwaneswar
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