Page 40 - BF Cover February 2019

ARTICLE

compulsion but it should be in such a fashion as the bank The farm mechanization is also very low at 1.84kw/ha
does for deposits or third party product mobilization. The against2.2 kw/ha envisaged by the expert. Vegatables, fruits
achievements of PMFBY in the year 2016- 17 inclusive of and flowers are perishable in nature and these need the
Kharif and Rabi total farmers' application( in lakh) is 574.25 best environment, so that their life can be increased. To
and claims paid (Rs crore) 7727.07 and farmers benefited make these perishable goods available throughout the year,
(in lakh) 90.79. it is important to have the required environment.

This figure depicts every efforts of banks. By increasing our To cater such needs Banks are actively involved in financing
efforts farmers can take risk by investing more money and the construction of cold storage. For cold storage there is
will get double income. Here what happens normally a subsidy support from NHB (National horticulture
banker who is in charge of farm credit does the insurance board).under this finance generally we select the farmer
who so ever comes in routine. He does not take lead to boost having good experience of marketing expertise and
this number. For this every bank should announce some encourage him to visit NHB office and put their project and
incentive for their employee who performs better. take a letter of content. This letter of content is valid for 1
year. In the mean time he can take finance from bank and
may start the project.
Training and Consultancy : The ratio of extension
worker to farmer is very less. In this case it is very difficult
for the government to provide timely information to Through this project one single person or group of persons
can increase not only their income but entire area will be
farmers. It is praiseworthy that many banks have
benifited from this project. Also on the basis of receipt of
volunteered to train their officers regarding farm practices,
cold storage/ Godown the farmers can take actual price of
which in turn help farmers. For example SBI Rural
their produce not the distress sale price. Besides the price
development Hyderabad. Other banks which are involved
in agri consultancy services are Canara bank, Indian overseas ,the small and marginal farmer can claim of interest
bank and Union bank of India. subvention and prompt repayment charge. More over banks
are financing for poly/ Green house and good portion of
subsidy is available.
IOB provides consultancy services for agri entrepreneurs and
canara bank provides consultancy services for high value
Under poly / Green house normally a farmer takes some
projects like medicinal plant farming and Union bank of india
training and apply for the loan. Basically under poly house
provides latest technical know how about farming and
methodology for increasing income by opening Village selection of site is very important and a farmer can inhance
his productivity(3 to 5 ) times . Also a farmer can take good
Knowledge centre ( VKC ) and through adoption of villages
return in small area of land . Here biggest problem is
in different parts of the country.
interest rate that bank should reduce.
Also unionbankofindia has set up training centre in their lead
district for dissemination of latest news about farming. Micro- irrigation(drip and sprinklers) is one
Banks are doing but the pace of implementation is slow technological option which hardly reached 10 percent of
owing to that remarkable result is not coming. Again banks potential area but can contribute to managing demand. As
should change their plan and access the result of on going per one estimate drip irrigation can help save water enough
training and consultancy services. It will act wonder and its to irrigate 10 times more area.Subsidies are given to farmers
impact will be unparallel for the farmers. for adoption of micro irrigation besides loan. Irrespective of
all efforts micro irrigation is not picking up.

Infrastructure : The Agro- based setting of rural
The reason behind this lack of motivation among farmers.
economy is changing towards more diversified activities.
However, such development is constrained by poor All most all banks have sufficent branches in rural and semi
urban areas. Each farmers from villages either through KCC
infrastructure as evidenced from rural road density, access
or SHG or merely having an account is attached to
to irrigation, power supply, market facility and network,
branches.By sparing some time and utilising the benefits of
godown, cold storage, cold chain and processing industries.
VKC (village knowledge center) or KVK ( krishi vigyan kendra)
40 | 2019 | FEBRUARY | BANKING FINANCE