The Hindu : Front Page : NABARD scheme given the cold shoulder

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Sunday, Jan 14, 2007
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NABARD scheme given the cold shoulder

L. Renganathan

KARUR: The Capital Investment Subsidy Schemes from the National Bank for Agriculture and Rural Development (NABARD) has found no takers in the industrialised Karur district. The schemes, through which cold storage units, godowns and market yards could be constructed at a 25 per cent subsidy, are scheduled to end this March 31.

The district has a good marketable surplus of fruits, vegetables and other agricultural produce; but there is no godown in the private sector with cold storage facilities. While production of banana crossed 1.03 lakh tonnes, that of mango reached 1,700 tonnes, during last year. Tapioca and drumstick production in the district during the same period were 22,000 and 44,500 tonnes respectively.

Under the scheme, for construction, renovation and expansion of rural godowns, in operation since 2002 and which attracts a maximum subsidy of Rs. 37.50 lakh, only one project has seen the light of day, that too at a project cost of just Rs. 2.75 lakh, at Panikkampatti.

If that is the case, the scheme for construction of cold storage that envisages up to Rs. 50 lakh-subsidy and in force since 2004, there is absolutely no applicant all these years. Yet another scheme for developing agriculture marketing infrastructure, grading and standardisation, in vogue since 2004, has attracted just four proposals, and that too following a special workshop to sensitise people. The National Programme for Organic Farming, a scheme for manufacture of organic inputs, has found just one taker who has initiated a project worth Rs. 6 lakh at Panikkampatti. The scheme allows up to Rs. 20 lakh subsidy for bio-fertilizer units, Rs. 1.5 lakh for vermi-compost units and Rs. 40 lakh for fruit and vegetable waste compost yards.

Officials stumped

While the same schemes have found good response in the neighbouring Tiruchi and Erode districts, the lukewarm response they have received in the industrious Karur have stumped officials. One reason attributed is that while people are innovative, most of them are concentrating on textile and related industries surrounding the urban limits. Agriculture and allied industries and the rural areas have held no attraction for the entrepreneurs in the district.

Though NABARD is taking fast paced initiatives to help entrepreneurs capitalise on the benefits through the schemes, it seems to be a race against time as the banks have to sanction the projects before March-end and that seems to be an uphill task.

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