Nabard predicts 12% growth in West Bengal PSL target

Nabard has planned a credit target of ₹2.47 lakh crore for Priority Sector Lending (PSL) in West Bengal in 2022-2023. This is almost 12% higher than the potential assessed in the year 2021-22 at ₹2.21 lakh crore.

According to AR Khan, Chief Managing Director of Nabard, West Bengal Regional Office, on the estimated total credit potential of ₹2.47 lakh crore in the state for the next financial year in the priority sector, the share of agriculture sector , including agro-infrastructure and ancillary activities is close to 39 percent.

The share of the MSME sector is estimated at almost 45%, SHG-JLG at around 8%, the housing sector at 5% and education loans at almost 2%, according to a press release published by Nabard .

Apart from this, the share of the social infrastructure sector is estimated at almost 1% and the remaining 1% is made up of export credit and renewable energy.

Crop loans represent nearly 65% ​​of total agricultural credit and about 26% of total credit potential of priority sectors. Related agriculture accounts for 22 percent while agri-infrastructure and agri-auxiliary constitute nearly 7 percent of total agricultural credit.

The share of agricultural term loans in agricultural credit is about 35 percent.

“Keeping in mind national and state government priorities to accelerate agricultural growth and improve farmer incomes by creating market-oriented agricultural enterprises and local employment opportunities, special emphasis has been placed in credit projections on capital formation in agriculture and related activities, maintaining and increasing productivity in agriculture, facilitating food and agribusiness processing activities, MSMEs and informal credit provision systems (SHG/JLG),” the statement read.

Potential linked credit plan

It should be noted that Nabard annually prepares a Potential Linked Credit Plan (PLP) for each district through a consultative process of planning and granting credit for priority sector activities.

PLPs map the potential available for lending to priority sectors taking into account available resources, scope of economic activities, trends in credit deployment, infrastructure needs and market opportunities. The sectoral potentials assessed through the district plans are aggregated at the state level in the form of a “State Focus Paper (SFP)”.

In addition to sector credit potentials, the State Focus Paper also identifies critical infrastructure gaps, other support linkages and key policy issues requiring appropriate interventions from various stakeholders for the holistic development of the sector. agricultural and rural economy of the state.

The government of West Bengal has recently taken a number of initiatives to foster the multidimensional growth of the economy of the state. However, these initiatives must be complemented by adequate credit deployment and coordinated efforts by all stakeholders for faster and holistic state development, Khan said.

Smallholder farmers, who make up 96% of the entire farming community in West Bengal, face the challenges of low investment, low productivity, inadequate post-harvest facilities and poor guidance to the market, associated with the negative impact of climate change.

In this scenario, the collectivization of agricultural products through agricultural producer organizations (FPOs) is imperative to take advantage of economies of scale by conferring greater bargaining power, better discovery of markets and prices, access to credit and insurance, etc., he pointed out.

Published on

February 08, 2022

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