He said there was also a need to finance the dairy sector along with the agriculture sector to ensure a balanced development of farming and dairy activities.

He was addressing a meeting to discuss the State Focus Paper 2009-10 of NABARD. He said if corrective funding was not possible in the current year, then it should be done in the next financial year.

He also asked bankers to come up with new and innovative projects, adding that the state government will lend all possible financial support to projects as suggested.

He said no sector in the rural economy should suffer from the lack of funding, and care should be taken to meet the financial requirements of small and marginal farmers and entrepreneurs of animal husbandry units.

He further said that since industrial units will come up in the vicinity of rural areas, the village people will benefit from the investments made.

Industry would mean creation of money, which in turn would mean increased tax revenue, he said adding, that higher tax revenue would translate into more spending in the rural areas.

Dr H C Pattnaik, Chief General Manager of the State Bank of India said, faulty policies at the global level with tilt toward industries had caused the collapse of the world economies, but in Gujarat, the direction would be changed for having inclusive growth of farming and industry.

He also sought government's help in reducing non-performing assets as the situation at the ground level was far removed from the one discussed at the top level.

Nabard Chief General Manager S G Siddhesh said the enhanced credit potential in the next year was worked out at Rs 13,690 crore with thrust on oilseeds, food processing, package for credit restructuring of sugar industry, and assistance to weavers, among others.

He said NABARD was expecting credit demand of Rs 243 crore in plantation and horticulture, and Rs 597 crore for agro-processing during 2009-10, which was besides the Rs 307 crore rural godown scheme.