NABARD plans credit boost for agriculture through revised unit cost framework
The meeting was held at NABARD New Delhi Regional Office under the chairmanship of Samir Athalye, Deputy Director General and Officer in Charge (OIC). Representatives from Reserve Bank of India (RBI), State Level Bankers Committee (SLBC), Government of NCT Delhi, Lead District Managers (LDMs) from all districts of Delhi, Krishi Vigyan Kendra (KVK), Ujwa, Delhi State Cooperative Bank (Delhi StCB) and other key stakeholders participated in the talks.
Speaking at the meeting, Samir Athalye underlined the critical role of scientifically determined unit costs in providing timely and sufficient institutional credit for farmers and rural entrepreneurs. He noted that NABARD, the apex development finance institution for agriculture and rural development, has prepared these unit costs through an extensive consultation process involving banks, State Government Department, technical institutions and other stakeholders. Unit costs serve as reference estimates for financing investment projects and allow banks to provide loans for productive asset creation while ensuring financial sustainability.
He also emphasized that it is essential to revise unit costs annually to keep up with changing market prices, technological developments and evolving production practices. Updated unit costs help ensure realistic project financing, prevent over-financing and under-financing while promoting sustainable and economically viable investments in farm and related sectors.
The committee conducted a comprehensive review of current unit costs through sectoral presentations covering a wide range of farm and related activities. The discussions reflected the active participation of all stakeholders who shared experiences and practical suggestions at the field level to improve the appropriateness of unit cost norms.
Based on the discussions, the Committee approved the rationalization of some existing unit costs to better align with current market conditions. It also approved the inclusion of a number of emerging investment activities within the State Unit Cost framework, creating new opportunities for corporate financing and promoting innovation, diversification and entrepreneurship in the agricultural sector.
The meeting concluded by reaffirming NABARD’s commitment to promote a robust agricultural credit ecosystem through evidence-based planning, stakeholder consultations and periodic updating of unit costs, thereby supporting sustainable agricultural growth and rural prosperity in the National Capital Region of Delhi.
