Many big and small organisations in Telangana have been showing concerns to retain good and healthy farming.Agriculture have become one of the prime concern to feed the demand of the nation in coming times. Therefore companies are indulging in long term plans to meet the surplus supply.
According to the National Bank for Agriculture and Rural Development (Nabard) data, there is a decline in the capital formation for agriculture through public investment.
During 2011-12 to 2014-15, the long-term credit, which is used for investment in agriculture and is seen as an indicator for its health, declined from Rs 11,112 crore to Rs 8,856 crore.
“It is a concern that the share of long-term credit in overall agriculture credit is constantly on the fall,’’ Nabard said in its State Focus Paper 2016-17 for Telangana .
Investment in agriculture is generally undertaken for acquiring physical assets that result in the creation of a stream of incremental income over a period time. Currently, private sector constitutes almost 85 per cent of the capital formation in agriculture.
The period under study also coincided with the interest subvention period for crop loans which might have acted as distorting factor, the apex bank for farm sector said adding that creation of capital goods is necessary to raise productivity of existing resources.
“All-India reports confirm that Telangana is one of those with high incidence of rural indebtedness with 89 per cent of agricultural households under debt,’’ Nabard pointed
The average size of holdings in the state is lower than that of the all-India level at 1.16 ha and the position is more ‘distressing’ in respect of small and marginal farmers as their average size of land holding is 0.72 ha.
The farmers are also unaware of the latest techniques in agriculture and farm practices suitable to their soil and water schemes. The ongoing major and minor irrigation schemes need to be quickly completed in a limited time frame with intensive monitoring. “There is also a substantial gap between the potential created and utilised,’’ the bank said.