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NABARD launched new initiatives to promote rural development
Jan 11, 2014

NABARD has been set up to promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives. In line with its goals NABARD has initiated new measures for improving rural credit and rural infrastructure particularly warehousing.

The Board has approved the launch of three crops specific Pilot Projects with production and post-production interventions to be implemented through Primary Agriculture Co-operative Society (PACS).

The three Pilot Projects include business models for potato in Hooghly district, West Bengal, tomato in Karnal district, Haryana, and onion in Nasik district, Maharashtra. The total outlay for the projects is Rs 37.20 crore, comprising loan and grant support from NABARD of Rs 18.43 crore and Rs 2.43 crore respectively and a subsidy support of Rs 16.34 crore from the Central/State Governments.

The Pilot Projects envisage crop-specific market surveys, identification of specific market players and marketing support through establishment of Project Market Facilitation Centres (PMFCs). The Projects will provide for productivity enhancing measures and post-harvest interventions. These measures include support for irrigation particularly micro-irrigation, scientific storage facility, cold storages and setting-up of agro-service centres. The pilots will also support promotional interventions including field demonstrations, crop and activity specific training and capacity building of farmers, exposure visits, etc. for ensuring technology adoption by them.

NABARD has sanctioned 548 warehousing projects in seven states amounting to Rs 1,046 crore under the NABARD Warehousing Scheme (NWS). These projects on completion will create an additional storage scientific space of 11.30 lakh MT for agriculture commodities and also help in better price discovery for farmers.

Further the refinance rate has been reduced by 0.20 per cent and the revised rate of interest on refinance for a period of five years for commercial banks, state cooperative banks, regional rural banks and primary urban cooperative banks will be 9.70 per cent, down from 9.90 per cent  However, for State Cooperative Agriculture and Rural Development Banks (SCRDBs), 10 basis points reduction is allowed for a single withdrawal of Rs 200 crore and above.


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