Chennai, June 7: The pattern of lending to the agriculture sector in Tamil Nadu is set to undergo a paradigm shift, with the apex National Bank for Agriculture and Rural Development (Nabard) deciding to shift focus away from primary agriculture to agro-industries over the coming five years.

In its perspective plan for 1997-98 to 2001-02, which runs in tandem with the 9th Five-year, Nabard plans to cut the share of resources allocated to primary agriculture from 58 per cent in the previous plan period to 50 per cent over the coming five years. This cut is being transferred directly to the secondary agro-industries sector.

As per the sectorwise/yearwise Potential Linked Credit Plan (PLP) of Nabard for Tamil Nadu, credit requirement of the secondary sector is expected to go up by 36.47 per cent by the turn of the century to Rs 3,925 crore over the 1997-98 requirement of Rs 2,876 cr. In 1996-97, actual lending to this sector stood at an estimated Rs 2,113 crore.

The acceleration in resource availability to this sector is evident from the fact that by 2001-02, the last year of the plan, agro-industries will receive Rs 5,338 cr, nearly 40 per cent of the Rs 13,520 cr total outlay for that year.

Overall, the credit requirement of all the three sectors (primary, secondary and tertiary) are estimated to grow by 30.08 per cent by the turn of the century, and by 70.06 per cent in the year 2001-02.

The total agricultural credit requirement for the state during the current fiscal is estimated at Rs 7,950 crore, from where it is expected to touch Rs 10,342 crore in 1999-2000.

Likewise, the Bank has forecast a major jump in the required credit flow to the tertiary sector (other priority sectors like rural infrastructure and land development) from Rs 891 crore in 1997-98 to Rs 1,663 cr by 2001-02.

However, the tertiary sector's share of total resources remains constant at just under 12 per cent of the total.

The shift in the refinancing pattern began during the 8th Plan as the industry recorded a growth of 97.88 per cent in 1994-95 (Rs 934 crore) over 1992-93 (Rs 472 crore). Compared to the 1992-93 disbursement, growth of refinance to the industries is estimated at a whopping 347.66 per cent in 1996-97 (Rs 2,113 crore).

Likewise, the tertiary sector registered a growth of 47.98 per cent in 1994-95 (Rs 404 crore) over the 1991-92 disbursement of Rs 273 crore. The estimated disbursement of Rs 799 crore in 1996-97 is 192.67 per cent over the 1992-93 disbursement.

Growth in agriculture (primary sector) was 36.17 per cent in 1994-95 (Rs 2,142 crore) over Rs 1,573 crore in 1991-92. The ground level credit flow to agriculture is estimated at Rs 2901 crore, 84.42 per cent more than the 1992-93 credit disbursement.

Overall, Nabard has projected an amount of Rs 52,652 crore for the entire 9th Plan period as against the 8th Plan PLP projections and actual credit disbursement of Rs 17,180 crore and Rs 20,294 crore respectively.

The anticipated credit flow during the ninth Plan period is put at Rs 45,812 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.