• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

G.K. Nair

KOCHI, Sept. 8

STATE Bank of India plans to increase its share in the agricultural lending (AGL) market in Kerala from 10.3 per cent during the current fiscal.

As of July 2002, the agricultural advance level is Rs 331 crore, which the Kerala Circle plans to increase at least by another Rs 80 crore during the current financial year, by deploying funds in certain thrust areas, Mr C. Sundarashyam, Chief General Manager, Kerala Circle, told Business Line.

According to him, the thrust areas identified by the bank in the agricultural sector are land development, minor irrigation, farm mechanisation, horticulture and plantation crops, allied agricultural activities, crop loans and the Kisan Credit Card and Kisan Gold Card schemes.

The branches have been advised to finance projects under soil conservation/land levelling/ contour terracing etc., for which potential is available in all districts, he added. "We have also identified Thrissur and Alappuzha districts for financing land reclamation projects.''

The bank also sees good potential in financing dug wells, pumpsets, sprinkle/drip irrigation systems in almost all the districts.

Besides, the bank is keen on extending finance for setting up of check dams and farm ponds to supplement irrigation potential in the hill districts of Idukki and Wayanad, Mr Sundarashyam said.

"Some districts, like Palakkad, Ernakulam, Thrissur, Idukki, Kottayam and Pathanamthitta, offer scope for financing tractors, power tillers, sprayers, combined harvesters, jeeps, two-wheelers, etc., and in these areas the bank would be extending finance under its farm mechanisation assistance scheme."

Major activities under agriculture in the State are horticulture and plantation crops. Floriculture is also popular in certain areas under marketing tie-up arrangements.

New planting/replanting of coconut and cashew plantations, vanilla cultivation, rubber, coffee, tea, cardamom, pepper, arecanut, etc., are the major cash crops.

The Vegetable and Fruit Promotion Council of Keralam (VFPCK) is actively promoting horticulture through self-help groups. "Our branches have actively associated with VFPCK like we did with the Kerala Horticulture Development Project earlier.''

Among the allied activities, the bank had identified dairy development and fisheries as thrust areas for the current year, according to Mr Sundarashyam.

Financing for the dairy segment includes loans for purchase of quality animals, calf rearing projects, feed mixing units, milk processing units, etc.

Under fisheries, the focus is on financing brackish/freshwater prawn culture, crab culture, prawn hatcheries, fishponds, etc., in Ernakulam, Thrissur, Alappuzha and Kannur districts.

Crop loans are the most popular type of agricultural loans preferred by the farmers and constitute 65 per cent of the total agricultural advances portfolio of the circle.

They are now sanctioned under Kisan Credit Card (KCC) scheme and have proved beneficial to the borrowers in terms of adequacy of credit including consumption needs.

Over 55,000 KCCs have been issued so far since the inception of the circle.

"For the current year, we have set a target of 35,000 fresh KCCs.''

A personal accident insurance policy has also been launched to cover all KCC holders in association with the United India Insurance.

Besides, SBI has launched Kisan Gold Card similar to KCC to cover all the term loan borrowers in agriculture.

"The total NPA in the agricultural segment is Rs 52.45 crore as of June 2002, and the recovery percentage is 84.2 per cent," he said.

Send this article to Friends by E-Mail

Stories in this Section
Dollar shorts get nervous!

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line