We endeavour to bring prosperity to farmers: Dr G R Chintala
Against the backdrop of the Covid crisis, NABARD chairman Dr G R Chintala spoke to the Millennium Post on the effect of the pandemic on agriculture sector, functioning of NABARD during this challenging time, how the organisation is improving lives of farmers among other things.
According to your assessment, how much is the agricultural sector affected due to the pandemic situation?
The pandemic crisis has been unfavourable for the economy, not only for India but the world. However, in India, the agriculture sector was hailed as good during the pandemic. Also, we had a hunch before. During the first wave of COVID-19, there were a lot of apprehensions over the operational part of the sector, but we had confidence because the Monsoon was extremely good. It resulted in a bountiful crop.
At the same time, the prices were also reasonable, because of the Super Commodity Cycle. Also, if we look into the credit part, we have a target of Rs. 15 lakh crore and the banking sector as a whole is giving us Rs. 15.58 lakh crores. So I do not feel that the agricultural sector is affected.
How is NABARD functioning?
During both the waves of COVID-19, NABARD has never stopped functioning. We never closed our offices. Like others, we gave some facilities or concession of working from home.
Otherwise, nothing was changed. I must say that during the pandemic we have done wonderful business. NABARD has recorded a 24 per cent of growth rate during the year from Rs. 5.3 lakh crore of our balance sheet, we have reached Rs. 6.57 lakh crore. Though, there are some difficulties in going to the field in some places. But even during the first wave people worked and were not much affected.
How does NABARD work towards the betterment of lives and working conditions of farmers?
Whether it is NABARD or any other government organisation, we endeavour to bring prosperity to the farmers. Once we succeed, things automatically change - whether the education of their children or the happiness.
So, NABARD aims to provide the right and adequate credit at the right time. Second, we target to create an enabling environment, right ecosystem, building a proper institution of credit delivery and lastly, a structured institution for self-help groups and others so that the semi-formal institutions do a lot of benefits to the people.
We have also initiated start-up financing and encouraging new ventures like farmer producer organisations to bring prosperity to the farmers. We have already created around 5000 FPOs in the last five years. As per this government's target, we will be able to create another 5000-10,000 FPOs in another five years. This will add a new dimension to the agricultural sector.
What are the major challenges NABARD is facing at this time?
Right now, we do not see many challenges, but the doubling of farmers income. Giving credit to the farmers is one aspect and producing crop is another aspect. Ultimately the farmer has to have proper marketing and proper price realisation. Now, NABARD, RBI and even the Govt of India is trying to look into the way of integration. So this is the main challenge to see that farmers get better remunerations.
