India is predominantly an agrarian society that has made great strides in creating an organised agrarian class structure. A mixture of traditional and advanced techniques makes India’s agricultural sector unique and promising. To safeguard rural development and promote the growth of the agricultural sector, the government of India has introduced NABARD Schemes, i.e., the National Bank for Agricultural and Rural Development.
Let’s learn more about NABARD schemes in detail and how it has been empowering rural development projects and the agricultural sector in India.
Understanding NABARD Schemes
NABARD stands for National Bank for Agricultural and Rural Development. A government’s initiative to manage the credit system for agricultural and rural development along with helping in policy planning and operations. The NABARD is responsible for overseeing the complete development of the concerned sectors.
For development and supervision, NABARD introduces different types of schemes known as NABARD schemes. These schemes cover agricultural and rural development along with fisheries, animal husbandry and small-sector enterprises.
Key Features of NABARD Schemes
Before we move ahead with the schemes in detail, let’s take a look at their key features:
- Expanding rural infrastructure for penetration of banks, technology etc.
- Assisting different types of funds and refinancing.
- Introducing and helping implement new projects for agricultural and rural development.
- Assisting state government and agencies in implementing their development strategies.
- Focusing on rural artisans, handicrafts and other such economic activities in the rural areas.
Exploring NABARD Schemes
The Indian government lays special emphasis on the development of rural areas and the agricultural sector. NABARD helps in implementing these dreams by working on the ground level. Amongst others, here are some top NABARD schemes:
- Watershed Management
Degradation, soil erosion, afforestation and related challenges were identified as the biggest reasons for climate change, poverty and fractured village base. To eradicate these root causes, a watershed management program was introduced. Since its introduction by NABARD, there have been 1835 successful projects with a capital outlay of ₹16,860 million. The program is open to every person interested in watershed management for irrigation, infrastructural development in rural areas etc. 1
- AgriClinic and AgriBusiness Centres Scheme
A truly unique and innovative scheme, the AgriClinic and AgriBusiness Centres Scheme was introduced by the Ministry of Agriculture and Farmers with NABARD as the prime credit facilitator. To promote agricultural development, the scheme provides financial assistance, helps in setting up AgriClinics for expert advice and establishes AgriBusiness centres as commercial units run by agricultural professionals.
Under the scheme, the following individuals/institutes can benefit: Individuals with graduation in agricultural or related studies. Diploma degree in agricultural or allied studies. Post Graduation in Agriculture or allied subjects given that the individual was a biological science graduate. Note: Make sure to check the complete list of beneficiaries under the scheme.
- Micro Irrigation Fund
With an aim of “Per Drop More Crop”, the micro irrigation fund was introduced with a corpus of ₹5000 crores and a target to bring 10 million hectares of land under the scheme. Through this scheme,farmers are provided financial assistance for adopting micro irrigation techniques and technologies.
The scheme was introduced back in 2018 and has created a strong base over the years bringing hectares of land under micro irrigation. Farmers can benefit from the scheme and reduce their dependence on rainwater for irrigation.
- Rural Infrastructure Development Fund
The Rural Infrastructure Development Fund or RIDF was introduced in 1995-96 to implement rural infrastructure development projects. The goal behind introducing RIDF was to help all those projects on rural infrastructure that got stopped due to financial inadequacy. Since the fund has been introduced, there has been better penetration of banks in rural areas thus helping in the overall development of rural areas. The fund is directly provided to the state government and state-owned corporations.
- Refinancing Schemes
The Reserve Bank of India set up the Agricultural Refinance Corporation in 1963 which was later on taken over by NABARD to refinance agencies responsible for providing short-term and long-term loans.Here’s how short-term and long-term refinancing schemes work:
- Short-Term Refinance: Short-term refinancing provides financial assistance to cooperative banks and regional banks by providing loans that are repayable on demand or on expiry period (not exceeding 12 months). The goal of short-term refinancing is to fund regional and cooperative banks to ensure a smooth capital flow at ground level.Under the scheme, Short Term refinance for Seasonal Agriculture Operations, Additional ST and ST(Weavers) are popular activities.
- Long Term Refinance: The key focus of long term refinance is to assist capital formation for both farm and non-farm activities. Through this scheme, credit is offered to farmers, rural artisans etc for their investment activities.
Did You Know? The refinancing department of NABARD has introduced the Kisan Credit Card for direct financial support to farmers.
- Credit Linked Subsidy Scheme
The scheme was launched by the government of India in 2000 with NABARD as the key subsidiary facilitator. The scheme aims at helping small scale industries in upgrading their technology. To avail benefits under the scheme, the industry must be operating in approved sectors.
- Dairy Processing and Infrastructure Development Fund
The government introduced the dairy processing and infrastructure development fund in its 2017-18 budget allocating a corpus of ₹8004 crores. 2 A five-year scheme, DIDF aims at creating a more modern dairy setup and overall infrastructure augmentation. Additionally, the scheme also aims at optimal price realisation of dairy products by primary producers. Through the scheme, new dairy units with expanded capacity are to be set up. The dairy farm loan has helped in establishing these units in rural areas.
To Conclude
The NABARD schemes have worked vigorously through the years to implement developmental strategies by promising both financial and non-financial methods. Earlier, obtaining a loan in rural areas was almost impossible given the lack of infrastructure and awareness. NABARD schemes have helped farmers adopt advanced irrigation and agricultural methods to meet the growing demand and ensure profit generation. To learn more about NABARD schemes, you can visit the official website of NABARD.