The National Bank for Agriculture and Rural Development (NABARD) has reduced the rate of interest by 0.2 per cent on its long-term refinance facility to banks to help promote farm sector investments.
“Rates of refinance will now be 9.5 per cent for five years and above and 9.7 per cent for three to five years period, banks availing more than Rs 500 crore in a single drawl will further be incentivised by 10 basis points,” according to a finance ministry statement quoting NABARD Chairman Harsh Kumar Bhanwala.
Also, financing for efficient agricultural technologies would get a further incentive of 50 basis points.
About 12 such innovative farm practices to enhance fruit and vegetable production have been listed, including production under controlled conditions like poly houses with water saving drip and fertigation facilities, precision farming and post-harvest management.
This initiative is aimed at combating food inflation by addressing supply-side constraints.
NABARD will also extend the 50 basis points rebate for supporting single purposes under area development schemes, mainly to benefit small and marginal farmers.