5 days ago
Nabard targets Rs 34 lakh crore farm credit, $2 billion
Nabard is a financial institution that supports farming and rural development in India.
It wants banks to provide about Rs 34 lakh crore in agricultural loans this year.
Last year, agricultural lending reached about Rs 32 lakh crore.
Nabard says some parts of India receive more farm loans than others.
It wants more money to reach regions that have good farming potential but are underserved.
The institution also wants financing to help store and transport crops because some food is lost after harvesting.
Nabard hopes to raise about $2 billion using a Reserve Bank of India facility.
Its chairman said the monsoon is manageable for now, although there are concerns about heatwaves and El Nino.
Nabard aims to raise agricultural credit to around Rs 34 lakh crore in FY27, up from Rs 32 lakh crore last year.
The bank plans to direct more lending toward underserved eastern, central and northern regions of India.
Nabard says value-chain financing is needed to address post-harvest losses affecting an estimated 25–30% of agricultural produce.
The institution aims to raise around $2 billion through external commercial borrowings under the Reserve Bank of India’s swap facility.
Nabard is considering tokenised bonds and is monitoring monsoon conditions, with the current deficit estimated at around 10%.
- Who
- National Bank for Agriculture and Rural Development (Nabard), led by Chairman Shaji Krishnan.
- What
- Nabard is targeting Rs 34 lakh crore in agricultural credit and plans to raise around $2 billion through external commercial borrowings.
- Where
- India, with special attention to underserved eastern, central and northern regions and some southern states affected by heatwaves.
- When
- The agricultural credit target is for FY27; the interview also discusses monsoon conditions and possible El Nino strengthening in September or October.
- Why
- To expand lending in underserved areas, finance agricultural value chains, reduce post-harvest losses and support agricultural insurance initiatives.
Key facts
- FY27 agricultural credit target
- Around Rs 34 lakh crore
- Previous year’s agricultural credit
- Around Rs 32 lakh crore
- Post-harvest losses
- An estimated 25–30% of agricultural produce does not reach consumers
- Planned external borrowing
- Around $2 billion
- Potential funding partners
- The World Bank and other multilateral agencies
- Monsoon deficit
- Around 10%, described as manageable and not alarming
- Priority activities
- Value-chain financing, animal husbandry, fisheries and horticulture
Sources
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