Punjab seeks finances from NABARD for farmers credits

Chandigarh, June 15 (UNI) The Punjab Government has sought liberal finances from NABARD through State Cooperative Banks to meet the short-term and long-term credit requirement of all the farmers under the cooperative fold in the state.

Cooperative Minister Capt Kanwaljit Singh during a meeting here with NABARD Chairman Y S P Thorat demanded that the bank should enhance the refinance from existing 40 per cent to 70 per cent of the advances made by the District Central Cooperative Banks.

The Minister pointed out that the State Cooperative Banks had chalked out a plan to disburse Rs 6000 crore as short-term loan to the farmers, of which 40 per cent share of NABARD was pegged at Rs 2,400 crore.

He suggested that if NABARD increases the loan amount, the farmers of the state could be helped immensely by saving them from falling prey to the unorganised sector, that is commission agents who charge exorbitant rate of interest.

While presenting the real picture of the declining agri sector of the state, Capt Singh said that keeping in view the input costs of the farmers, their produces were yielding nothing.

He said that it becomes imperative to increase the quantum of cooperative credit at cheaper rates of interest for saving the farming community to get trapped in the vicious circle of private lenders.

He also urged the NABARD Chairman to release funds for long term loans as Punjab Agricultural Development Banks had a scheme to lend Rs 660 crore in the year 2007-08.

MORE UNI