Finance Minister Nirmala Sitharaman has directed the National Bank for Agriculture and Rural Development (NABARD) to prioritize improving rural income as a key objective. During a review meeting, Sitharaman highlighted the need for efficiency and outcomes at the ground level and directed NABARD to facilitate the aggregation of organic producers by Farmer Producer Organisations (FPOs), with a focus on the Northeast states. The Finance Minister also urged NABARD to encourage farmers to shift towards more remunerative, but less water-guzzling crops, specifically millets, pulses, and oilseeds. She emphasized the importance of improving the digital capabilities of Rural Financial Institutions, including Regional Rural Banks (RRBs), to augment meaningful financial inclusion. Sitharaman advised NABARD to augment rural credit by correcting regional imbalances and for better productivity in rural areas, including for the non-farm sector.
In the context of the ongoing International Year of Millets 2023, Sitharaman specifically directed NABARD to focus on increasing production and marketing of millets and encouraged the protection of returns of farmers who are growing them. The NABARD chairman briefed Sitharaman about the development package of INR 25,991 crore for infrastructure development, FPOs, SHGs and off-farm development for Jammu and Kashmir, as well as various measures taken by NABARD in the aftermath of the Finance Minister’s visit to various states to drive development and financial inclusion. These initiatives reflect the government’s emphasis on improving the livelihoods of rural communities and promoting sustainable agricultural practices.
