Nabard may soon fund Indians setting up farms abroad

Business Line - Hyderabad, Nov 26

The National Bank for Agriculture and Rural Development (Nabard) is likely to extend funding to agricultural enterprises wishing to set up farming estates abroad, according to its Managing Director, Dr K.G. Karmakar.

Speaking at a seed-industry-bankers workshop, organised by the Andhra Pradesh Regional Office of Nabard here on Friday, Mr Karmakar said there are opportunities for Indian farmers to take up agriculture in countries in Africa, Georgia, Ukraine and Ethiopia, among others.

Nabard was also in the process of concluding a deal with an Israeli Fund for research and technology transfer in agriculture, he said.

“I will be travelling to Israel soon for taking this forward. The fund could also be utilised for promoting Indian agri ventures overseas,” he said.

Mr Karmakar also asked the seed industry to come up with specific research proposals especially in pulses and oil seeds and other vegetable oils as there was a definite need. Nabard was keen on furthering research in the seed-industry, he added.

Currently, it has three funds — R&D fund, rural innovation fund and farmer technology transfer fund with a combined outlay of about Rs 200 crore.

On the concerns in the seed industry, he said: “At present, the major concern is lower seed germination rate. It should not be anything less than 90 per cent. But today, 55-60 per cent is also being accepted.” The rising cost of seeds, replacement of seeds (at 15 per cent currently), lack of any break-through in oilseeds, pulses research, thinning of talent were other major concerns, he added.

Mr P. Mohaniah, Chief General Manager, Nabard, Andhra Pradesh, said the one-day workshop was being organised to draw a framework for addressing the credit needs of the seed industry and public private partnership.

“Another issue is how to make quality seeds available to farmers,” he said.

Mr Karmakar had earlier formally released a national status paper on the seed industry. The seed industry had a turnover of Rs 4,900 crore last year with a growth rate of 1.3 per cent a year. The production of seeds had grown from one lakh quintals in 1960 to 120 lakh quintals in 2009-10. About 60 per cent of the market is catered to by 600 private companies including multinationals.