Demonetization: West Bengal to get up to Rs 1000 cr from NABARD for rabi crop

West Bengal will get a share of Rs 900 to 1,000 crore out of Rs 21,000 crore additional fund sanctioned by the NABARD for the current rabi sowing season to tide over the cash crisis resulting from demonetization.

National Bank for Agriculture and Rural Development (NABARD) Chief General Manager A K Raybarman expressed confidence that there would be no scarcity of money with sanctioning of up to Rs 1,000 crore. The government has taken enough measures to make adequate cash available in rural India so that farmers do not suffer during the sowing season, he said.

State Bank of India CGM P P Sengupta also said the bank would give priority to make cash available in the districts to take care of the farm sector. Speaking at the CII-organised CSR meet in Kolkata he informed that banks are working towards reviving an old system which would reduce demand for cash at the hands of the farmer for buying agricultural inputs.

"There has been an effort to reduce the cash demand of a farmer to the extent that he spends for inputs like fertiliser and seeds. Methods are being worked out to allow farmers to buy their requirements without paying cash to the vendor," Raybarman said. "I had suggested in a meeting that instruments like payorder can be issued for 60-70% of farmers' credit limit that can be redeemed at the farm stores," he said.

If demand for cash is reduced by 70% then it will be smooth going in the rabi season despite demonetization, bankers felt. Last year farm credit demand was some Rs 3 lakh crore in India.