Chandigarh, Feb 5 (PTI) New challenges faced by agriculture and rural economy can be addressed through innovation, technology and strong institutional support, Haryana Chief Minister Nayab Singh Saini said on Thursday, adding that his state has played a significant role in the country's food security.

With changing times, agriculture and the rural economy are facing several new challenges, including declining groundwater levels, deterioration of soil health, shrinking landholdings, climate change and rising cost of production, Saini said.

He emphasised that these challenges cannot be addressed through conventional methods alone, but require innovation, technology and strong institutional financial support.

Saini was addressing the state-level credit seminar organised by NABARD here.

On the occasion, the chief minister also released the NABARD State Focus Paper for the year 2026-27, in which Haryana's priority sector credit potential has been assessed at over Rs 3.67 lakh crore, reflecting an increase of about 17 per cent compared to the previous year.

Saini said that rural prosperity is not possible without making agriculture profitable.

Therefore, there is a need to implement the principles of "more production with less land" and put "per drop more crop' in practice, he said.

He further said that just like credit facilities, infrastructure is equally crucial for rural development. Irrigation, storage, warehousing, rural roads, electricity and digital connectivity form the foundation of development.

He said that special focus will be given to Smart Agriculture Zones in the upcoming state budget, and separate clusters are being developed for this purpose.

Clusters for kinnow, guava, strawberry, litchi and other horticulture crops are being created to encourage farmers to shift from traditional farming to modern agricultural practices.

He also urged farmers to adopt sugarcane cultivation as part of crop diversification.

The state government is making concerted efforts to strengthen the linkage from "soil to machine and farm to market" so that farmers can get better market access for their produce as well as fair and remunerative prices, he said.

Saini urged banks to ensure that timely, simple and transparent credit facilities reach every eligible farmer.

NABARD is playing a significant role in this direction and is continuously supporting the development of agricultural and rural infrastructure, he said, adding that MSMEs, self-help groups, women entrepreneurship and cooperative institutions play a crucial role in strengthening the rural economy.

He said that 710 primary agricultural credit societies (PACS) are functioning in Haryana and cooperative banks have been computerised.

Farmers have complete faith in PACS, but in recent times there have been concerns regarding their functioning, he said, according to an official statement.

Saini emphasised that it is necessary to restore farmers' trust in PACS as they play a vital role in rural development.

He further said that Haryana is consistently taking steps to realise Prime Minister Narendra Modi's vision of "Sahkar se Samriddhi".

On the occasion, NABARD Chief General Manager Nivedita Tiwari said that NABARD has assessed Haryana's priority sector lending potential for 2026-27 at Rs 3.67 lakh crore, which is 17 per cent higher than the previous year.

Out of this, Rs 1.32 lakh crore has been earmarked for the agriculture sector and Rs 2.11 lakh crore for the Micro, Small and Medium Enterprises (MSME) sector.

The state government is working in coordination with banking and financial institutions to empower farmers, entrepreneurs and the rural economy so as to achieve the goal of "Viksit Haryana - Viksit Bharat", she said, adding that NABARD is laying special emphasis on women empowerment.

Under the Rural Infrastructure Development Fund (RIDF), NABARD has so far sanctioned Rs 18,393 crore for rural infrastructure development in Haryana, out of which Rs 14,066 crore has been released.

These funds are being utilized in sectors such as roads, irrigation, renewable energy, grain storage, drinking water, sanitation and electricity, she said.

The State Focus Paper 2026-27 has prioritised areas, such as crop diversification, water conservation, micro-irrigation, horticulture, value addition, climate-resilient agriculture, strengthening of Farmer Producer Organizations (FPOs), promotion of rural MSMEs, renewable energy and social infrastructure in order to realize the vision of "Sahkar se Samriddhi". PTI SUN HVA