Gadkari stresses need for making microfinance easily available to poor through social institution

Earlier, while addressing another virtual interaction, he said items produced by a farmer-producer company (FPC) need to be marketed in such a manner that would lower their cost of production. Gadkari appealed to the representatives of FPC in the Amravati district of Maharashtra, who attended the webinar, to focus on how to reduce the cost of production as well as transportation and labor costs while increasing the production at the same time.

Union Minister Nitin Gadkari on Thursday emphasized the need for making microfinance easily available to the poor through a social institution. The minister said he has already had a discussion with NITI Aayog CEO Amitabh Kant, its Vice-Chairman Rajiv Kumar and representatives from Tata Group and IIT regarding this.

The road transport, highways, and MSME minister added that "they are now preparing a policy by which the Reserve Bank can easily give the permission, license, for the social microfinance institution". Addressing a virtual launch of a web portal, Gadkari said that currently, the banking system and non-banking financial companies (NBFCs) are doing an excellent job "but still they are under a lot of stress".

He pressed upon the need to have a "transparent, time-bound, and result-oriented computerized system with a web platform where we can launch a microfinance institution which can easily make finance available to the poor people and that is exactly the need of the hour". Gadkari said the most important thing is how microfinance to the poor people can be easily made available, adding that this was a challenge.

Besides, the minister underlined the need for more liquidity in the micro, small and medium enterprise (MSME) sector, highlighting that they currently contribute 30 per cent to the country's gross domestic product (GDP). Earlier, while addressing another virtual interaction, he said items produced by a farmer-producer company (FPC) need to be marketed in such a manner that would lower their cost of production.

Gadkari appealed to the representatives of FPC in the Amravati district of Maharashtra, who attended the webinar, to focus on how to reduce the cost of production as well as transportation and labor costs while increasing the production at the same time. He also said the products should be made available in the domestic market without compromising with the quality. The surplus produce should be exported, he added.

The minister said a farmer-producer company with a pulses mill cluster could reduce its production and transportation costs through solar roof tops, using railway for freight, and use of dry ports. He also appealed to the farmers to reduce the cost of production by using organic fertilizers from agricultural waste instead of using chemical fertilizers and pesticides.