The National Bank for Agriculture and Rural Development (NABARD) has projected a credit potential of ₹3.55 lakh crore under priority sectors for Andhra Pradesh for 2024-25. It is an increase of 24% over the potential assessed for financial year (FY) 2023-24.
Agriculture Minister Kakani Goverdhan Reddy released a focus paper of NABARD on A.P., at the Secretariat at Velagapudi near here on Monday.
NABARD has assessed the credit potential for the agriculture sector as ₹2.04 lakh crore, which accounts for 58% of the total potential. A crop loan potential of ₹1.36 lakh crore has been identified. The potential for agriculture and allied term loan has been assessed at ₹68,341 crore, for the MSME sector at ₹88,481.62 crore and ₹62,355 crore under other priority sectors.
The credit potential acts as a road map to banks for extending loans to priority sectors as mandated by the RBI and for the government departments for providing funds for bridging key infrastructure gaps.
Mr. Goverdhan Reddy said that capital formation in the agriculture was essential as it leads to better agri-infrastructure such as irrigation systems, storage facilities, and transportation networks. Investments in modern technologies will contribute to increased agricultural productivity. Thus, the banks should come forward to increase their share of agri term loans to facilitate sustainable agriculture infrastructure in the State.
Further, the banks shall also consider extending financial support to agri startups and agri-preneurs to create a vibrant and innovative agronomy, he said.
NABARD CGM M.R. Gopal, RBI GM R.K. Mahana and others spoke.
