According to Shaji KV, the reliance on informal credit sources in rural areas is declining significantly. “The access of credit from informal sources is actually coming down very drastically. That means a formalisation of rural credit is happening. This formalisation leaves more margins in the hands of rural borrowers because informal loans typically come with higher interest rates, reducing profitability for borrowers,” he explained.

The introduction of schemes such as interest-subvented loans through Kisan Credit Cards, agri fund initiatives, and capping interest rates on informal loans has been pivotal in driving this transition.

Rural Consumption on the Rise

The formalisation of rural credit has also had a positive impact on rural consumption patterns. Shaji KV noted that rural consumption is outpacing urban consumption in terms of growth, reflecting robust demand in India’s rural pockets.

Looking ahead, the NABARD Chairman emphasised the importance of moving beyond primary agricultural production and focusing on value-added processing through comprehensive value chain development. Farmgate infrastructure development across the country is expected to support this shift.

Promising Growth in Agri Credit

Agricultural credit growth has been steady, averaging around 13% annually over the past decade. For the fiscal year 2024-25, Shaji KV projects an agricultural credit growth rate of over 13%, with an anticipated achievement of ₹27-28 lakh crore in agricultural credit disbursal.

Addressing Regional Imbalances in Agri Credit

The NABARD Chairman also addressed concerns regarding regional disparities in agricultural credit, particularly in eastern and northeastern India. He pointed out that the lack of digitised land records in these regions poses a significant barrier.

“For credit to grow, there needs to be a linkage of KYC with the activity being undertaken. In some areas, the absence of digitised land records is a challenge. To resolve this, the government is focusing on digitising these records,” Shaji KV stated, underlining the need for accessible data to empower banks to extend credit efficiently.

Comprehensive Approach to Agriculture Development

When questioned about the role of fertiliser subsidies in boosting agriculture, Shaji KV asserted that while fertiliser subsidies are beneficial, other factors such as irrigation, improved road connectivity, high-yielding crops, and credit availability at subsidised rates are equally critical for the sector’s growth.

Showcasing Rural India’s Potential at Grameen Bharat Mahotsav

The Grameen Bharat Mahotsav, a six-day event in New Delhi, aims to bridge the gap between rural producers and urban consumers. NABARD is showcasing various rural products, including Geographical Indication (GI) tagged items, organic goods, and products crafted by rural artisans, tribal communities, women entrepreneurs, self-help groups (SHGs), and farmer producer organisations (FPOs).

NABARD is also actively supporting rural artisans in marketing their goods through digital platforms, particularly the Open Network for Digital Commerce (ONDC). The ONDC initiative promotes open-source networks to facilitate the exchange of goods and services online, independent of any specific platform.

“We are working in different states with diverse groups to enhance their production capabilities and visibility,” Shaji KV remarked, reinforcing NABARD’s commitment to sustainable and equitable rural development.

A Vision for Rural Progress

As India’s rural credit system becomes more formalised, the benefits extend beyond financial inclusion, driving rural development, enhancing consumption, and boosting agricultural output. With initiatives like the Grameen Bharat Mahotsav and the digitisation of rural infrastructure, NABARD continues to play a pivotal role in shaping a sustainable and prosperous rural ecosystem.

The post “NABARD Chairman Highlights Rural Credit Formalisation and Growth Opportunities at Grameen Bharat Mahotsav” appeared first on FolksTimes.

Early Life and Education

Born into a humble farming family, Charan Singh was deeply connected to the struggles of rural India from an early age. He pursued a degree in law from Agra University and practiced as a lawyer, but his passion for social justice led him to join the Indian freedom struggle under the leadership of Mahatma Gandhi.

Political Career Focused on Farmers

Charan Singh entered politics to champion the rights of farmers and peasants, focusing on land reforms and rural upliftment. He was instrumental in drafting the Zamindari Abolition Act (1950), which dismantled the exploitative landlord system, giving land ownership to millions of farmers.

Other key contributions include:

• Debt Redemption Bill: Protecting farmers from exploitation by moneylenders.
• Advocacy for Land Reform Acts in Uttar Pradesh, which redistributed land to small and marginal farmers.
• Promoting policies to make India’s rural economy self-reliant.

Tenure as Prime Minister

Chaudhary Charan Singh served as India’s fifth Prime Minister from July 28, 1979, to January 14, 1980. Though his tenure was brief, his policies were focused on addressing the challenges faced by farmers, including better credit facilities, price support mechanisms, and rural infrastructure.

Legacy and National Farmers’ Day

Charan Singh’s vision and policies earned him the title “Champion of Indian Farmers”. Recognizing his immense contributions, the Government of India declared his birth anniversary, December 23, as National Farmers’ Day (Kisan Diwas).

• Why National Farmers’ Day?
  National Farmers’ Day celebrates the backbone of India’s economy—farmers, who contribute 18.3% to the nation’s GDP and employ 42.6% of its workforce. By honoring Charan Singh on this day, the nation underscores the importance of rural development and the need to empower the farming community.

Challenges Farmers Face Today

Despite the progress inspired by Charan Singh’s reforms, Indian farmers still face challenges like:

• Small landholdings: Over 86% of farmers own less than 2 hectares of land.
• Debt: Around 50% of farming households are in debt, with limited access to affordable credit.
• Climate change: Unpredictable weather patterns and inadequate irrigation facilities affect crop yields.

Key Government Initiatives for Farmers

To uphold Charan Singh’s vision, the government has launched schemes such as:

• PM-Kisan Yojana: ₹6,000 annual income support for small farmers.
• Pradhan Mantri Fasal Bima Yojana: Insurance against crop loss.
• eNAM: An online trading platform for better market access.
• Kisan Credit Card: Short-term loans at subsidized rates.

Honoring Farmers and Charan Singh

National Farmers’ Day is celebrated with events, seminars, and awards to recognize innovative farmers and raise awareness about sustainable agriculture. It’s a day to remember Charan Singh’s vision of empowering the rural economy and ensuring farmers’ prosperity.

Conclusion

Chaudhary Charan Singh’s birthday is not just a day to honor his legacy but a reminder of the crucial role farmers play in India’s economy and society. By celebrating National Farmers’ Day, we pay tribute to a leader whose policies transformed rural India and commit to continuing his mission of strengthening agriculture for a brighter future.

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