Credit is the lifeblood of any sector. It is a dichotomy that the Cooperative Banks which are surviving on oxygen and receive 3.5 per cent of the total deposits are providing most of the agricultural loans in the State. Agriculture credit flow should increase from the Nabard and other nationalised banks, said Chief Secretary AP Padhi at National Bank for Agriculture and Rural Development’s (Nabard) State Credit Seminar 2017-18 here on Friday.
Nearly 70 per cent areas of the State are still uncovered by bank branches. Basic banking services like appointment of Business Correspondents should be done on a priority basis, said Padhi.
All the eight lakh youths who are receiving skill development training cannot be provided jobs by the State Government. The banks should give a close look at this sector and should provide loans under the Mudra Yojana to these first generation entrepreneurs for startups, micro, small and medium industries, so that they can set up their own enterprise, said the Chief Secretary.
Padhi said besides stress on farming sector there should be a diversification to sectors like fishing, poultry and dairy if farmers’ income is to be doubled in five years. The credit flow to these sectors should be expedited He congratulated the Nabard for bringing out a comprehensive document (State Credit Plan).
Additional Chief Secretary and Development Commissioner R Balakrishna said statistics look nice but results are needed. Odisha has different challenges. 40 per cent of the population is SC and ST. Reduction of poverty is necessary. The income of rural households should be addressed on a priority basis.
Farm mechanisation is important and more stress should be laid on production of cash crops. Cattle and poultry feed, fisheries and poultry sector should be accorded more importance and the potential plan should address this issues. He congratulated the Nabard and said “They have done a good job so far.”
Finance Secretary TK Pandey said the State respects the credit plan. The basket of income of farmers from various sources should increase instead of only farm income. Poor bank network is still a problem. Many GPs do not have banks, this need to be spurred. Complaints of loan application forms not being available and delay in sanctioning of loans have been received.
MFIs are proving Mudra loans at 26 per cent interest rate. The banks should rise to the occasion and provide Mudra loans. The State would invest more on farm and irrigation sector and development of rural infrastructure. But loans should be provided to the MSME sector in an pro-active manner, said Pandey.
MSME Secretary lN Gupta said there is always talk about big industries. Only 300 proposals for MSME’s have been cleared in lat year. Credit is not flowing to the SMES. The State has only 28 medium industries. The micro industries should grow to small and small to grow to become medium industries. But that is not the reality. There is a ‘subsidy trap’. Big industries are opening series of micro industries to avail subsidies.
State Bank of India CGM BVG Reddy said clusters for different products like the appliqué works of Pipli and painting of Raghunathpur should be opened , so that the tourists visiting the place can buy them and argument their income. Nabard CGM KC Panigrahi delivered the welcome address; GM PK Panda presented the highlights of the State Focus Paper. RBI GM PK Das also spoke. Nabard GM M Soren offered a vote of thanks.