The finance ministry has asked the banks to provide more loans for agriculture related activities

To make sure that goals are reached for the current fiscal year, the Finance Ministry has requested that public sector banks expand the amount of credit available for dairying, fisheries, and animal husbandry. According to a statement released by the Finance Ministry on Wednesday, Secretary, Department of Financial Services, M. Nagaraju, attended a high-level meeting to examine the status of loan disbursement to these agri-allied businesses. Top representatives from the state UT Level Bankers’ Committee, NABARD, and public sector banks attended the conference. Discussions were also attended by representatives of the Department of Fisheries, the Department of Animal Husbandry & Dairying, and state governments’ UTs. The Secretary emphasized the need for state governments to help banks enhance the flow of credit to these industries.

In addition to highlighting the tendency of regional disparities in credit disbursement in allied activities, he emphasized the role that the allied sector plays in promoting agricultural growth and its employment potential in rural areas. Since every region has enormous potential for related businesses, he instructed banks to hold regional level meetings to guarantee credit disbursement in all locations. The Secretary also gave NABARD instructions to work with LDMs and state line departments to identify fish farmers and give them access to the KCC scheme’s advantages.

The Union Budget 2024-25 increased the Department of Fisheries’ funding by 54% to Rs 2,616.44 crore from the revised estimate of Rs 1,701 crore in 2023-24 as part of the Center’s drive to increase rural incomes. More than 30 million people, primarily from marginalized and disadvantaged groups, rely on this industry for sustainable livelihoods.