Porba village in Phek district surrounded by paddy fields. (Morung Photo)
Our Correspondent
Kohima | February 24
The National Bank for Agriculture and Rural Development (NABARD) has stated that the potential credit outlay for the state of Nagaland for 2026-27 is estimated at Rs 3088.27 crore which is an increase of 46% over the projections estimated for the year 2025-26.
This stated in State Focus Paper 2026–27, brought out recently by NABARD, Nagaland Regional Office, Dimapur.
The Potential Linked Credit Plan (PLP) is annually prepared by NABARD for each district which provides details of the credit potential (Both physical and financial) for development in different sectors of the rural economy.
The potential estimates for the year 2026-27 have been prepared taking into account the policies & priorities changes in the infrastructure facilities and other support services available as well as planned priority sector lending guidelines by Reserve Bank of India and also various macro policy guidelines and thrust areas identified by GoI, Government of Nagaland, RBI, NABARD and the sectoral ecosystem.
Credit potential for agriculture
The State Focus Paper stated that the total PLP projections for agriculture is Rs. 1262.95 crore out of which term loans for agri and allied activities for Financial Year 2026-27 is Rs 541 crore which is an increase of 150% over the projections estimated for the year 2025-26.
Ancillary activities such as food processing PLP projections for Financial Year 2026-27 also increased from Rs 48.36 crore to Rs 171.25 crore.
Under Agri Infrastructure, a potential of Rs 41.06 crore has been assessed for Financial Year 2026- 27.
Farm Credit
The Kisan Credit Card (KCC) emerged as an effective credit delivery mechanism to meet the production credit requirements of farmers in a timely and hassle-manner.
Government of India provides interest subvention to banks to ensure availability of crop loans and post-harvest expenses up to a maximum of Rs 3 lakhs.
The interest subvention to banks under modified interest subvention scheme is 1.5% on own involvement in eligible crop loans financed at 7% interest rate.
Additionally, 3% incentive is available to farmers for prompt repayment of these loans.
A total of 43, 020 KCC accounts had Rs 292.29 crore outstanding till September 2025.
Production Maintenance and Marketing
The state Focus Paper stated that agriculture and allied activities have always remained a prominent sector in contributing and generating employment.
In Nagaland, more than 60% of the population depend on agriculture for livelihood.
Crop production peaked at 1179095 MT in 2923-24 before an anticipated decline to 1128641 MT in 2024-25.
Correspondingly, the total area under crop cultivation is anticipated to be 374593 ha in 2024-25, a slight decline from 387587 ha in 2023-24. (Source: Nagaland Economic Survey 2024-25)
In order to revive the growth rate of agriculture, Government of India has initiated several measures including PMDDKY, soil mapping, digitization of all villages and strengthening of soil testing labs etc.
NABARD provides refinance at concessional rate of interest to state cooperative bank and Regional Rural Banks to ensure timely availability of crop loans to farmers for such activities which are undertaken in the process of raising various crops and are seasonally recurring in nature.
In 2024-25, NABARD has provided Rs 47.85 crore by way of refinance to Nagaland State Cooperative Bank and Nagaland Rural Bank for Seasonal Agricultural Operations.
NABARD provides refinance to RRBs and State Cooperative Bank/DCCBs for financing marketing of crops, fisheries sector production and marketing activities of artisans (other than handloom weavers) and village, cottage or tiny sector industries for financing persons belonging to weaker section and engaged in trade, business or service activities including distribution of inputs for agriculture and allied activities.
Based on the estimated gross cropped area of the state, the crops grown the ratio of small marginal and other farmers and trends in off take of credit as also keeping in view the programmes of GoI and the various plans of the State Government and special initiatives of NABARD the potential for credit support assessed for Crop Production Maintenance and Marketing for the year 2026-27 is Rs 508.66 crore.
