The federal government on Thursday introduced further liquidity price Rs 30,000 crore for farmers via the Nationwide Financial institution for Agriculture and Rural Growth (NABARD). Authorities-owned farm sector lender NABARD will instantly get the working capital for the farmers’ post-harvest necessities in direction of the rabi season. The announcement got here as Finance Minister Nirmala Sitharaman gave particulars of the second set of measures beneath the federal government’s financial bundle to deal with the harm brought on because of the coronavirus (COVID-19) pandemic and the weeks-long lockdown.
The Rs 30,000-crore liquidity can be over and above the Rs 90,000 crore offered by NABARD via the traditional refinance route within the present monetary 12 months, the federal government stated in a press release.
Authorities-owned farm sector lender NABARD will instantly get the working capital for the farmers’ wants in direction of the present kharif crop (Could/June) and the post-harvest rabi season.
The Finance Minister stated three crore small farmers will profit from the extra working capital via NABARD.
Economists say the transfer will allow rural lenders to deal with the wants of the farming sector, which relies upon to a big extent on such credit score.
Ms Sitharaman additionally stated that in March, NABARD offered a sum of Rs 29,500 crore to cooperative banks and regional rural banks to help lending.
State-owned NABARD additionally prolonged help of Rs 4,200 crore for rural infrastructure via the Rural Infrastructure Growth Fund (RIDF) throughout the month.
Economists and score businesses count on the economic system to contract by as much as 5 per cent within the present monetary 12 months, a steep fall from earlier authorities estimates of 6 per cent progress.