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• At district level, the line departments may provide the subsidy allocated to them to banks for
utilization in respect of borrowers to be selected by banks. As banks are competent to undertake
borrower appraisal, this arrangement would lead to both credit off-take and proper and full
utilization of Govt. subsidy.
• Banks may be impressed upon by the DLCCs / DLRCs to select and finance the borrowers in a cluster
so as to enable the line departments to provide forward and backward linkages in a smoother way.
• The attention of DCs of all the districts who are also the Chairmen of the DLCC / DLRCs in their
respective districts be drawn by the DIF, GoJ to ensure that review of term loan under agriculture
sector be kept as a separate agenda item and high importance is accorded to the same.
• Better availability of extension and support services under important sectors like dairy, poultry,
animal husbandry, fisheries, horticulture, vegetable and food processing, etc. being an important
pre-requisite for success of economic activities would significantly improve the credit absorption
capacity of farmers.
• As the NPAs has been found to be a great dampening factor for banks holding them from taking
exposures, the Govt. needs to re-calibre its response to the issue so as to take care of banks’ concerns
and facilitate creation of a supportive environment for recovery of agriculture loans.
• Concerned Line Departments need to conduct sensitization and awareness generation programmes
for farmers at block and district levels which may also be attended by the bankers of the area to
enable a smoother fructification of credit potentials into GLC flow.
• On the lines of NABARD’s Area Development Banking Plans, Line Departments may also plan in
association with banks concerned for promoting investment activities in a cluster with the support
of bank finance.
• Govt. needs to create infrastructure like common facility centres, storage centres, transportation
facilities, cold chambers and cooling units especially for vegetable and horticultural produces which
will boost private investments including through bank credit in the sector.
• With a view to enhancing outreach of both the line departments and banks, networking with reputed
NGOs, Farmers organizations / forums like NABARD promoted Farmers’ Clubs or ATMA promoted
Farmers’ Interest Groups would prove to be of immense help for implementation of various Govt.
schemes like BGREI, NFSM-Pulses, etc.
• Proper training arrangements and provision of technical know-how for the agripreneurs identified
for being supported by banks with credit facility with active involvement of the concerned line
department would go a long way in enhancing the success rate of such enterprises and encourage
the banks to provide credit in larger numbers.
• Schemes for rain water management viz. construction of series of check dams, watershed
development programmes, canal irrigation, construction and renovation of water reservoirs, rain
water harvesting etc. can be strengthened. State govt. may consider setting up of base nurseries/
progeny orchard at block level and setting up of Seed multiplication farm cum Training Centre.
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