Around
70 per cent of India's population of one billion lives in rural
areas and depends on agriculture and other allied activities for
a livelihood. The task of sustainable rural development, therefore,
is an enormous one. It is important for the agricultural sector
to lay greater emphasis on increasing productivity and profitability
through conservation of natural resources. The role of universities
in research and development, extension services and right application
of technology assumes importance in this context. Thrust is also
required on strategies to generate income potential through non-farm
activities by building the entrepreneurial capacity of villagers
and providing them with ideas and resources to set up their own
micro-enterprises. They must also be imparted knowledge of the market
for their products, because it is crucial for micro-enterprises
in the non-farm sector to be sustainable. Sustainability is at the
core of NABARD's mission for rural development. NABARD (National
Bank for Agricultural and Rural Development) itself has been formed
to promote sustainable and equitable agriculture and rural development
through effective credit support, related services, institutional
development and other initiatives.
Credit
planning
Credit
planning at the block and district level is an important annual
exercise undertaken by NABARD to assess the potential for investment
in a variety of economic activities in the private sector. The Potential
Linked Credit Plan (PLP) for each district is prepared on an annual
basis.
These
plans are based on the sector-wise potential, the existing infrastructure
and the infrastructure likely to come up within the year. These
try to estimate the extent of development in agriculture and related
areas that would be possible with institutional credit in the year.
These district plans are consolidated at the state level and help
state governments and other agencies to plan their development programmes
and strategic priorities.
Water
resources
As
an important strategy of augmenting and stabilising agricultural
production in the country, NABARD is giving special thrust for creation
of additional irrigation structures through special loans to state
governments under Rural Infrastructure Development Fund (RIDF).
In
order to boost investments in minor irrigation structures, NABARD
has not only stepped up the allocation of refinance in its annual
budget but has also reduced interest rates to a uniform level of
8.5 per cent per annum.
NABARD
has given importance to the development of groundwater resources
in a scientific and sustainable manner. Groundwater potential in
each block, mandal and taluka is classified into 'safe' (up to 70
per cent development of groundwater resources), 'semi critical'
(70 to 90 per cent development), 'critical' (90 to 100 per cent)
and over exploited (more than 100 per cent) categories. The bank
ensures that there is no exploitation of groundwater resources in
the blocks and mandals classified as 'dark' by regulating refinance
to banks for investment in minor irrigation projects in such areas.
The
bank is also making efforts to encourage and support artificial
recharge, rainwater harvesting and minimising surface run-off, especially
in semi-critical, critical, over-exploited and drought-prone areas.
It has taken initiatives in creating awareness and propagating the
use of advanced water conserving irrigation systems and for promoting
conjunctive use of surface and groundwater sources, especially in
canal command areas.
In
coastal areas, the ingress of seawater into fertile agricultural
land and the associated problem of salinity is a matter of concern.
The bank is supporting efforts for reversing this trend and restoring
the soil fit for cultivation through its RIDF loans to the government
of Gujarat.
People's
participation
An
important programme of NABARD for securing the people's participation
in the development of the rural community is the Vikas Volunteer
Vahini (VVV), which provides a forum for banks, technical experts
and people to engage in a positive dialogue and make sincere efforts
to achieve sustainable development. VVV works on the principles
of 'development through credit' to promote people's participation
and inculcate repayment ethics among borrowers. A total of 5882
farmers' clubs have been established under this programme across
27 states and two union territories. Agencies participating in the
programme include banks, NGOs, agricultural universities and Krishi
Vigyan Kendras.
NABARD
has supported the establishment of a resource centre for precision
farming for poverty alleviation in the M S Swaminathan Research
Foundation, Chennai. It is a pilot project for creating awareness
about precision farming to optimise the use of agricultural inputs
and help build the capacity of small and marginal farmers by upgrading
their skills. The emphasis on soil conservation, and efficient use
of water and energy is expected to promote sustainable agricultural
productivity. The centre will train farmers in the use of balanced
soil nutrients, including the advantages of using bio-fertilisers
and organic farming as well as Integrated Pest Management (IPM)
for the control of diseases and pests.
