Uttarakhand - Department of Land Resources

area-specific approach where-in the banker understands the specific needs and
situation of the farmer in a comprehensive manner is more efficient rather than a
fragmented approach.
Role of Finance in Agro-Vision for Uttarakhand : Agriculture and Agri-business finance
assumes an even more significant and catalytic role in the development of these sectors
in Uttarakhand, given the high dependence of the State on agriculture and allied
activities. For instance, Uttarakhand produces about 5.80 lakhs tons of fruits, 3.80
lakhs tons of vegetables and 4.28 lakhs tones of potato (1996-97). Out of this only about
1-2 percent is processed. Processing can lead to value addition. Higher margins for
one‟s products cannot be obtained without value addition. Such value addition through
processing, marketing, storage and production of required raw materials requires credit.
Huge amount of credit needs to be pumped in to agriculture sector to provide support to
farmers, which shall in turn give, thrust to agriculture and propel the State‟s economy.
As the agriculture moves from traditional to commercial, from subsistence to
remunerative; importance of credit becomes more pronounced. Now that agriculture
policy of the State is to stress on horticulture, floriculture, medicinal crops etc., the role
of production technology, processing and marketing would be vital. These require
investments from public and the private sector. Apart from production, private
investment can be encouraged in storage, transportation and marketing of agricultural
products. This shall increase the life of perishable commodities, enhance marketability
and thus make agriculture more remunerative. It shall also have a spread effect on
economy of the State as a whole.
In summation, the role of credit in Uttarakhand can be:
1. Provision of timely, adequate and easy institutional credit on affordable terms to the
agriculturists in the state, be they small, large or marginal farmers.
2. Availability of Credit and/or financial assistance for allied activities such as animal
husbandry, medicinal & aromatic plants, sericulture etc.
3. Facilities for availing credit on commercial /soft terms for agri-business activities such
as food processing, agro-processing, organic farming, floriculture, horticulture etc.
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