Governor La Ganesan with others during the State Credit Seminar 2024-25 organised by National Bank for Agriculture and Rural Development at Hotel De Oriental Grand, Kohima on March 5. (Morung Photo)
Morung Express News
Kohima | March 5
Although agriculture remains the backbone of Nagaland’s economy, the challenges faced by the farmers are numerous ranging from infrastructural deficits to market accessibility to need for technological adaptation to the impacts of climate change.
This was observed by Governor of Nagaland, La Ganesan while acknowledging that the hardworking farmers of Nagaland are tirelessly contributing to the nation’s food security and actively participating in the pursuit of agricultural innovation and sustainability.
Speaking at the State Credit Seminar 2024-25 organised by National Bank for Agriculture and Rural Development (NABARD) at Hotel De Oriental Grand, Kohima this morning, Ganesan cited the huge potential the state holds for agricultural development.
“Our diverse agro-climatic conditions, varied topography, and rich traditional knowledge create numerous opportunities for sustainable agricultural practices and innovative agri-entrepreneurship,” he stated.
However, for potential to translate into prosperity, Governor pointed out the critical role of credit to empower the farmers tailored to their unique needs thereby, facilitating a broader socio-economic upliftment of the rural areas.
Accessible and affordable credit, he maintained, not only boosts agricultural output but also supports secondary activities and enterprises that form rural economic webs. Towards this end, the Governor called for collaboration between NABARD, state government, other banks, and financial institutions to customize credit products, innovate solutions, and create a conducive environment for the financial empowerment of the agrarian and rural sectors.
‘State Focus Paper’ released
Referring to the “State Focus Paper” released today which identifies sectoral constraints and suggests various measures to improve the Ground Level Credit (GLC), the Governor asserted that the major issues flagged in the State Focus Paper be discussed and considered by the various government departments and banks with the objective to address these issues in a time bound manner.
He also urged the State Level Bankers’ Committee to make all-out efforts to establish brick and mortar branches in the remaining 22 unbanked Rural Development (RD) blocks in the State, which will go a long way in furthering financial inclusion in the State.
Ganesan also advised NABARD to set the ‘right and realistic’ targets as per RBI guidelines and in consultation with the Govt. of Nagaland, and was optimistic that today’s seminar will pave the way for an inclusive, sustainable, and bright future for the state of Nagaland.
The Governor also launched the SFP 2024-25, released a short film on Rural Haats and gave away the awards to the best performing SHGs/JLGs and banks, and hand over sanction letters of NABARD sponsored projects.
Need to diversify beyond agriculture
Besides agriculture, there is also a growing recognition of the need to diversify beyond agriculture to promote more sustainable and inclusive growth. Sectors like tourism, horticulture, handloom and handicraft and the MSME sector provide tremendous scope to harness the state’s potential.
NABARD CGM/OIC, Tiakala Ao made this suggestion while adding that efforts need to be made to address infrastructure deficiencies to create a more conducive environment for spurring economic growth and development.
Drawing the attention of the State government, Ao said Bank credit plays a pivotal role in economic transformation, especially in agrarian states like Nagaland. “It is essential to channelize credit towards key sectors such as agriculture and its allied sectors, and the MSME sector, aligning with the priorities set by the Government of India,” she added.
While NABARD has been instrumental in preparing Potential Linked Credit Plans (PLPs) for each district, aimed at guiding banks in extending credit to potential sectors of the economy, she stated these PLPs serve as the base for preparation of the Annual Credit Plan for Priority Sector Lending by banks underscoring their importance in channelizing credit towards priority sectors at the grassroots level.
She announced that the assessed credit potential for the State of Nagaland amounting to Rs 1,178.08 crore under Priority Sector activities for the year 2024-25.
Hence, Ao said the focus of banks during the year 2024-25 should be to extend a desirable quantum of credit to the Farmers Producer Organizations (FPO) in the State promoted under various schemes of the GoI as well as the Primary Agricultural Credit Societies (PACS) and expanding the scope of financing under Agriculture Infrastructure Fund.
While citing on the need to fast-track saturation of Kisan Credit Cards (KCCs) with special focus on Animal Husbandry, Fishery and PM KISAN beneficiaries, she also pointed out that the State needs to focus on agriculture including expanding irrigation facilities, horticulture and food processing, which can revolutionize its economy. “Our credit planning exercise has factored in these priorities,” she added.
Despite positive trends in credit flow to the agriculture sector, the CGM said there is room for improvement, especially in investment credit while strengthening infrastructure and enhancing credit flow are paramount for unleashing the sector’s full potential. She also emphasised on the need to address infrastructure gaps for ensuring smooth credit flow, particularly in rural areas.
To strengthen the initiatives of the State Government departments, she informed that NABARD has committed over Rs 90.00 crore during FY 2023-24 under various funds for infrastructure, investment and refinance as well as for developmental and promotional activities.
She expressed confident that with the joint efforts of all major stakeholders, Nagaland will see a spurt in the economic in the coming years, and sought the continued support of the state government and all partner institutions in the common pursuit of the development of the state.
