Executive Summary the Theme for the PLP 2016-17 Shall Be “Accelerating the Pace of Capital Formation in Agriculture and Allied Sector” 1
Total Page：16
File Type：pdf, Size：1020Kb
PLP 2016-17 | Mahabubnagar Executive Summary The theme for the PLP 2016-17 shall be “Accelerating the pace of capital formation in agriculture and allied sector” 1. The geographical area of the district is 18.43 lakh ha and is divided into 5 revenue divisions viz., Narayanpet, Gadwal, , Nagarkurnool and Wanaparthy. The population of the district as per 2011 census is 40.53 lakh, which is 5.40 lakh higher than the population of 2001 Census that constitutes a decadal growth of 15.34 % vis a vis the States’ decadal growth of 11.10%. The district, which falls under south Telangana zone is the largest district in Telangana with 64 mandals. The average annual rainfall of the district is 604 mm. The major soil types are Red, black and loamy. Agriculture is the main stay of the economy of the district, with 82 % of the farmers being small and marginal farmers. The main crops grown in the district are Rice, Maize, Cotton, Redgram, jowar and castor. Total Gross Cropped and Net Cropped area is 9.03 lakh ha and 8.55 lakh ha respectively. The major source of irrigation in the district is tube wells and dug wells which occupy 70 % of the total irrigated area followed by tanks. 2. The overall performance of banks under District Credit Plan during 2014-15 was 73 % and the credit flow under priority sector was `.3560.77 crore as against the target of `.4858.68 crore. Credit flow under crop loans was ` 2803 crore as against the target of ` 2520 crore. While the crop loans disbursements have exceeded the targets, the average achievement under term loans is 68 % of DCP target. The district has a network of 224 branches of Commercial Banks, 100 branches of A.P. Grameena Vikas Bank, 20 branches of the District Central Cooperative Bank, one Local Area Bank – Krishna Bhima Samrudhi Bank, one branch of APSFC and 77 Primary Agricultural Cooperative Societies. The CD ratio is 129 % during 2014-15. 3. PLP Projections 2016-17 The total credit potential for 2016-17, under priority sector for district is estimated at ` 8218 crore registering a growth rate of 30 % over the PLP projection for the year 2015-16 and 23 % over the ACP target for the year 2015-16. The crop loans have been projected at ` 4907.14 crore, term investment for Agriculture and Allied Activities at ` 1973 crore, MSME `765 crore. 4. Major constraints & Suggested action points • Major constraints are low crop diversification, indiscriminate use of fertilizers & pesticides, low farm mechanization, inadequate capital formation, poor recovery in Govt. sponsored programmes, availability of godown space (estimated storage gap of 1.87 lakh MT) & other marketing infrastructure etc. • Availability of inputs & minimum support price to farmers • Considering the land holding pattern and also the problem of fragmented holdings, banks need to promote JLGs and extend credit facility to tenant farmers/sharecroppers and marginal farmers. • Formation of farm producer organisations • Govt. may encourage organic farming practices so as to reduce the excess use of fertilizers and pesticides by farmers. • Technology innovations in crop production & management – SRI paddy, drum seeder, etc. • In view of depletion of groundwater, there is an imminent need to recharge the ground water, bring in proper legislation and usage of water saving devices. • Scientific storage, supply chain management & market linkages 1 PLP 2016-17 | Mahabubnagar • Dairy loans to be encouraged on a large scale with tie up arrangements with Milk Cooperative societies. • Credit flow for sheep farming is to be supported by a collective recovery effort by banks together with development agencies • Establishment of storage facilities close to farm gate and post harvest credit facilitation by way of pledge finance against Negotiable Warehouse Receipts (NWRs). • Use on non conventional energy sources particularly for solar power & financing by banks for solar systems. • Loans to MSME sector under CGTMSE and grant under technology upgradation scheme 5. Highlights of developments / initiatives having bearing on the credit flow NABARD has taken up many developmental initiatives in the district viz., 29 watershed development programmes under PM’s Package for distressed districts & 4 TDF projects and banks are expected to meet the credit needs in area treated under watershed projects. Other initiatives include promotion of JLGs, godown accreditation and technology interventions which would have direct bearing on the credit flow. NABARD has also taken initiative in developing PACS as a one stop shop unit for meeting all the needs of the farmers like providing agriculture implements on hire basis, enabling purchase of inputs, having good quality storage capacity as per Negotiable Warehouse Receipt system, marketing facilities, etc. NABARD/NABCONS accredited four PACS & created awareness among farmers on NWR financing and scientific storage of commodities. Considering large number of small and marginal farmers and people below the poverty line and as also the extensiveness of agriculture and rural development there is a need for promoting single purpose small scheme on a cluster basis and aggregating them into area development scheme. Area development schemes on dairy have been proposed in consultation with line departments & Banks. These schemes need to be encouraged by banks in identified cluster. This would also facilitate planning and execution of infrastructure facilities viz., backward and forward linkages for full realization of the benefits of the scheme. 6. Thrust Areas Thrust areas for 2016-17 are Formation, nurturing and financing of Producer organisations of small and marginal farmers and financing ‘bhoomiheen kisan’ (landless) in JLG mode. Financing of post harvest infrastructure, mini - processing units, Producer Organizations, financing against NWRs, area based schemes etc. would all go a long way in supporting target beneficiaries, the small and marginal farmers and taking them forward in the value chain system. 7. Infrastructure - Government & Private investments Infrastructure development is a necessary pre-condition for integrated rural development in the district. Rural Infrastructure Development Fund (RIDF) serves as a supplement to the efforts being made by State Governments in this direction. As on 30 July 2014, 223 projects are ongoing with a RIDF loan of `262.11 crore (RIDF XIII to RIDF IX) in the district and the disbursement there against is Rs 139.24 crore. The gap between sanction and disbursement amount is, 53 %. There is need for expeditiously executing the projects so that these start accruing benefits to the community. The critical infrastructure required for the district are water harvesting structures, micro irrigation, custom hiring and agro service centers etc. Private investments are very much required in rural godowns, cold storages & seed processing industries and other post harvest infrastructure. These will be capable of creating wide and big impact leading to increased production and productivity, better price realization by farmers there by higher credit off take. 2 PLP 2016-17 | Mahabubnagar Conclusion There is a need for coordinated approach for enhancing capital formation in agriculture, better monitoring and review at BLBC, DCC meetings, effective implementation of Financial Inclusion plans including better coverage of OLessees, Tenant Farmers through Joint Liability Group mode. 3 PLP 2016-17 | Mahabubnagar Appendix A to Annexure 1 Broad Sector wise PLP projections Sl No Particulars PLP Projections for 2016-17 A Farm Credit i Crop production,Maintenance and Marketing 490714.30 ii Term Loan forAgriculture and allied activities 112729.63 Subtotal 603443.93 B Agriculture Infrastructure 14097.13 C Ancillliary Activities 70321.00 I Credit Potential for Agriculture(A+B+C) 687862.06 II Micro Small and Medium Enterprises 76473.13 III Export Credit 0.00 IV Education 2868.75 V Housing 20400.00 VI Renewable Energy 2083.28 VII Others 28934.50 VIII Social Infrastructure involving Bank credit 3225.00 Total Priority Sector (I to VIII) 821846.72 4 PLP 2016-17 | Mahabubnagar Appendix B to Annexure 1 Summary of Sector/ Sub-sector wise PLP projections – 2016-17 Sr.No Particulars PLP Projections 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop production,Maintenance and Marketing 490714.30 ii Water Resources 8933.15 iii Farm Mechanisation 32478.50 iv Plantation and Horticulture(including Sericulture) 24125.58 v Forestry and Waste Land Development 871.36 vi Animal Husbandry-Dairy 20863.48 vii Animal Husbandry-Poultry 9865.53 viii Animal Husbandry-Sheep,Goat Piggery etc 14305.15 ix Fisheries(Marine,Inland,Brackish water) 637.20 x Others-Bullock,Bullock cart etc 649.70 Sub total 603443.93 B Agriculture Infrastructure i Construction of storage facilities(warehouses, market yards,Godowns, Silos, cold storage units/cold storage chains) 5378.50 ii Land Development ,Soil Conservation,watershed development 7469.13 iii Others 1249.50 Sub total 14097.13 C Ancilliary activities i Food and Agro processing 10544.00 ii Others (Loans to Cooperatives Socieities of farmers for disposing of their produce,Agri clinics/ AgriBusiness Centres,Loans to PACS/FSS/LAMPS, Loans to MFIs for on lending, SHG ATL 59777.00 Sub total 70321.00 Total Agriculture 687862.06 II Micro, Small and Medium Enterprises ii MSME - Working Capital 42640.00 ii MSME - Investment Credit 33833.13 Total MSME 76473.13 III Export Credit@ 0.00 IV Education 2868.75 V Housing 20400.00 VI Renewable Energy 2083.28 VII Others(Loans to SHGs/JLGs,loans to distressed persons to prepay non-institutional lenders,PMJDY,loans to state sponsored organisations for SC/ST 28934.50 VIII Social infrastructure involving bank credit 3225.00 Total Priority sector 821846.72 @ credit dispensed at port centre 5 PLP 2016-17 | Mahabubnagar District Profile Mahabubnagar is the largest district in the State of Telangana with a geographical area of 18.43 lakh ha. The district comes under south Telangana zone with 64 mandals covering 1557 villages and is divided into 5 revenue divisions viz Narayanpet, Wanaparthy, Gadwal and Nagarkurnool.