NABARD projects a credit potential of Rs. 36,292 crores for Assam

The National Bank for Agriculture and Rural Development (NABARD) has predicted a credit potential of Rs 36,292 crore for the state of Assam for the financial year 2022–23.

It launched the State Focus Paper today for the financial year 2022–23, which focuses on the consolidation of exploitable district-wise realistic potential, both in physical and financial terms, in the state of Assam. At the State Credit Seminar held on December 8, 2021, focusing on the priority sector and with the objective of ensuring integrated and sustainable rural prosperity in the state, NABARD has projected a credit potential of Rs. 36,292 crores for the state of Assam for the financial year 2022–23.

The credit potential is 12% higher than the previous year. Of the total projected credit potential, as much as Rs. 18755 crores (52%) is towards agriculture and allied activities, Rs. 12952 crores (36%) is towards the MSME sector, Rs. 1388 crores for informal credit – SHGs/JLGs, and Rs. 3197 crores for housing, education, and other sectors.

The credit potential estimated will be used as a basis for the preparation of the Annual Credit Plan for priority sector lending of the state by financial institutions for the years 2022–23.

Expert opinions were also considered in order to close the productivity gap through agri-reforms, transformation, post-harvest management, collectivization of agricultural produce, value addition, and organising farmers into Farmer Producers’ Organizations (FPO), which may aid in the creation of local-level commodity-specific value chains to enable small and marginal farmers to realise optimal value of their produce through better price discovery mechanisms.