Agri-NBFCs seek parity with banks, want inclusion in govt subsidy schemes

Agri-NBFCs seek parity with banks, want inclusion in govt subsidy schemes


In a bid to strengthen Agri-and help it become a significant contributor in financing the entire value chain of agriculture, the government may consider including these financial institutions in all state supported subsidy schemes and programmes.


The Agri sector have made a strong case for including them in various subsidy schemes and programmes of the government, a benefit hitherto available only to the Banks.



This is a demand that would be given due consideration while framing financing regulations for the agricultural sector, official sources said.


“This (inclusion of Agri in government programmes) will bring about certainty and predictability in the business of rural lending and make the system transparent in terms of policy implementation. Additionally, customer benefits will also significantly increase,” said Prabhat Chaturvedi, CEO, Netafim Agricultural Financing Agency (NAFA).


The government statistics suggest that more than 85 per cent of the farmers are small & marginal with less than 2 hectare of land and have less than 30 per cent access to formal credit.


To ease the access of credit and support the government’s ambition of financial inclusion, Agri-NBFCs have played an important role by offering access to financing at attractive and competitive commercial terms for farming equipment and machinery. However, these NBFCs have traditionally been excluded from the purview of government subsidy schemes.


–IANS


sn/bg

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor