PLP 2016-17 District

EXECUTIVE SUMMARY A. Introduction

Surat is primarily an agricultural district with sugarcane and paddy as the predominant crops. The other major crops cultivated are jowar, wheat, groundnut, banana, vegetables etc. About 65 % of land holdings are with small and marginal farmers and the average size of the holdings is 2.02 ha. The Potential Linked Credit Plan (PLP) for 2016-17 has been prepared aligning with the revised RBI guidelines on Priority Sector Lending. It estimates credit flow of Rs.650065.69 lakh, of which, Crop Production sector has a major share of 27.42 % at Rs.178217.00 lakh.Term loan under agriculture is assessed at Rs.90048.69 lakh accounting for about 13.85%. Under MSME, Rs.242491.00 lakh has been assessed as potential forming 37.30 % and balance at Rs 139309.00 lakh has been estimated for other sectors like Exports, Education, Housing, etc.The activity-wise and block-wise assessment of potential is presented in Annexure I. The PLP projection for 2016-17 is higher by Rs.120065.25 lakh when compared to the PLP for the year 2015-16 representing an increase of 22.65 %. Further, the PLP projection is higher by Rs 111346.69 lakh when compared to the ACP target for the year 2015-16. Suggested action points in respect of major sectors and infrastructure/non-credit inputs are as under:

B. Sector-wise comments on major sectors

1. Crop Production, Maintenance and Marketing

Adoption of advanced technologies for the restoration of soil health, mechanisation, and cultivation of suitable remunerative crops, effective pest and disease management are essential to step up the agricultural production. There is emergent need to take action on the points like adequate backward and forward linkages to the agro-export units, diversification of agriculture, distribution of quality input, storage and market yard facilities, wider publicity of various insurance schemes etc. Modern methods of cultivation like fertigation for sugarcane, precision farming for vegetables, sprinkler irrigation for pulses etc need to be adopted for increasing production and productivity. Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes.

2. Water Resources and Land Development

Major sources of irrigation are canals/channels and wells/tubewells. Based on the availabile sources of surface and ground water in the district, potential for the year 2016-17 have been estimated at Rs.8778.22 lakh. Projects providing canal irrigation facility may be budgeted to ensure development of under developed and backward areas. As monsoon continues to be erratic, need for greater focus lies in water resource management. Farmers need to be incentivised to save water by adopting suitable cropping pattern on their farms. There is a need for conserving soil moisture security so that “more crop per drop” can be achieved.

3. Farm Mechanisation

The farm mechanization is important as it leads to increased production and productivity, better utilization of irrigation potential, adoption of multiple cropping pattern, etc. Based on existing level of mechanization in the district and infrastructure support available and planned, a long term potential for year 2016-17 is estimated at Rs.22113.38 lakh.In view of small holdings, the practices like custom hiring of machinery should be adopted.Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. Banks may adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipments.

4. Plantation and Horticulture

Surat is notified under Agri Export Zone for mango & vegetables. Cultivation of flowers and vegetables under controlled conditions in green houses is picking up in the district. The farmers have taken up cultivation of medicinal and aromatic plants also.The Horticulture and Agriculture Departments may popularise suitable horticulture crops for development in cultivable wastelands and saline/alkaline areas.

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PLP 2016-17 Surat District

5. Animal husbandry

Surat district has been the leading producer of milk and milk products. Animal husbandry, particularly dairy is the most suitable subsidiary occupation. As dairy offers quick returns and near stable prices, banks may finance liberally ensuring tie-up arrangements with Dairy farms/societies. Banks may also encourage farmers to take up calf rearing and fodder cultivation as viable activities with financial assistance. At least one breeding farm is required for increasing supply of good quality animals. There is also need to have requisite infrastructure, extension services and fodder development farms.

6. MSME

Surat district has been recognized as an industrially developed district in the State. Main industries in the district are diamond,textiles, steel, petrochemical, fertilizers, chemicals, engineering, sugar mills, paper mills, milk processing, cement manufacturing, besides the traditional industries, viz. zari, diamond cutting / polishing, art silk industry, etc. Potential for the year 2016-17 has been estimated at Rs.242491.00 lakh. Critical interventions are required in the form of skill development, backward and forward linkages etc. Banks should step up their lending to MSME sector including provision of adequate Working Capital assistance. Handloom Weavers and Handicrafts sectors in the district need to be adequately supported with bank credit. Banks may encourage artisan SHGs/JLGs from Handloom, Arts & crafts in these areas and also issue SCCs.

C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc.

NABARD’s initiative on Natural Resources Management with focus on tribal development under the. WADI model is holistic in approach, addressing production, processing and marketing of produce and other livelihood needs. In Surat district, 2 wadi projects are in progress covering 1460 families.Government of has established the National Adaptation Fund on Climate Change (NAFCC) with a budget provision of Rs.350 crore for the year 2015-16 and 2016-17. NABARD has been appointed as National Implementing Entity (NIE), responsible for implementation of adaptation projects under the Fund.

D. Thrust areas for 2016-17

The bank SHG linkage programme is getting momentum owing to joint efforts of NABARD and GLPC, particularly under Mission Mangalam programme of Government of . Considering the trend, the estimated credit flow under the Sector during the year 2016-17 is estimated at Rs.4200 lakh. With an objective to design an integrated and participatory action plan for agriculture and allied sectors, three activities under Area Based Schemes viz. Cold storage, Banana rapening and Agri Dairy development were identified as crucial for the development of the district.

E. Conclusion

The major driver of private capital formation is investment credit. Immediate thrust is required to raise its share in the total agriculture credit. The document, has therefore, been prepared with emphasis on accelerating the pace of capital formation in agriculture and allied sectors. This goal can be achieved with the coordinated efforts of all the stakeholders.

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PLP 2016-17 Surat District

BROAD SECTOR-WISE PLP PROJECTIONS 2016-17

Name of the District: Surat State: Gujarat

(Rs.in Lakh)

PLP Projection for Sr No Sector/Activity 2016-17 A Farm Credit I Crop Production Maintenance and Marketing (Crop Loan) 178217.00 Ii Term Investment for Agriculture & Allied Activities (Agri. Term Loan) 64256.49

A Total Investment under Agriculture & Allied Activities (1+2) 242473.49 B Agriculture Infrastrucure 7716.53 C Ancillary Activities 18075.67 I Credit Potential for Agriculture (A+B+C) 268265.69 II MSME Sector 242491.00 III Potential for Export Credit 27560.00 IV Credit Potential for Education 9680.00 V Credit Potential for Housing 87744.00 VI Credit Potential for Renewable Energy 649.60 VII Credit Potential for Others 9405.00 VIII Social Infrastructure involving bank credit 4270.40 Total Priority Sector 650065.69

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PLP 2016-17 Surat District

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PLP 2016-17 Surat District

SUMMARY OF SECTOR/SUB SECTOR-WISE PLP PROJECTIONS - 2016-17

(Rs. in Lakh)

Sr.No. Sector/Actvity PLP Projection I Credit Potential for Agriculture A Farm Credit 242473.49 I Crop Production, Maintenance and Marketing 178217.00 Ii Water Resources 8778.22 Iii Farm Mechanisation 22113.38 Iv Plantation & Horticulture 3059.85 V Forestry and Waste land Development 80.77 Vi Animal Husbandry - Dairy Development 6916.08 vii Animal Husbandry – Poultry Development 257.11 viii Animal Husbandry - Sheep, Goat and Piggery Development 176.40 Ix Fisheries Development 3846.64 X Others-Bullocks,Bullock carts etc 19028.05 B Agriculture Infrastrucure 7716.54 I Construction of storage facilities 3718.13 Ii Land development, Soil conservation and Watershed development 962.58 Iii Others 3035.84 C Ancillary Activities 18075.67 I Food and Agro Processing 12375.67 Ii Others 5700.00 Total Agriculture 268265.69 II Credit Potential for Micro, Small and Medium Enterprises (MSME) 242491.00 MSME- Working Capital 48355.00 MSME- Term Loan 193536.00 III Potential for Export Credit 27560.00 IV Credit Potential for Education 9680.00 V Credit Potential for Housing 87744.00 VI Credit Potential for Renewable Energy 649.60 VII Credit Potential for Others 9405.00 VIII Infrastructure Support 4270.40 Total Priority Sector 650065.69

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PLP 2016-17 Surat District

Map of District Surat

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PLP 2016-17 Surat District

District Profile District - SURAT State - GUJARAT Division - Sub Region I & II 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 4327 Agro-climatic Sub Region I & II of zone 113 No. of Sub Divisions - Zone No. of Blocks 9 Climate Average Range of temp. is between 9 and 43 Degree Celcius No. of Villages (Inhabited) 729 Hard Rock / Alluvial, Deep black clayey soils(, Palsana, , Soil Type No. of Panchayats 567 Mangrol and Mandvi talukas) 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 432689 Normal 2011-12 2012-13 2013-14 Actual Forest Land 36680 Rainfall [in mm] 1400-1500 929 2172 2089 Area Not Available for Cultivation 10167 Variation from Normal (-)671 672 589 Permanent Pasture and Grazing Land 16968 Availability of Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 1110 Ground Water 957.92 380.21 577.72 Cultivable Wasteland 38903 5. DISTRIBUTION OF LAND HOLDING Current Fallow 8831 Holding Area Classification of Holding % to Other Fallow 1946 Nos. Ha. % to Total Total Net Sown Area 285671 <= 1 Ha 47132 37 22700 9 Total or Gross Cropped Area 315687 >1 to <=2 Ha 35615 28 51938 20 Area Cultivated More than Once 30016 >2 Ha 45943 36 185225 71 Cropping Inensity [GCA/NSA] 111 Total 128690 100 259863 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 107 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 56 Population(provisi 6079 3400 2679 1918 4161 Agricultural Labourers 252 Scheduled Caste 161 83 78 55 110 Workers engaged in Household Industries 32 Scheduled Tribe 807 410 397 676 140 Workers engaged in Allied Agro-activities 38 Literate 2852 1709 1143 771 2081 Other workers 1273 BPL 189 - - - - 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 1338 Having brick/stone/concrete houses 155 Having electricity supply 275 Rural Households 270 Having source of drinking water 84 Having independent toilets 99 BPL Households 189 Having access to banking services 111 Having radio/tv sets 83 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 729 Anganwadis 2183 Dispensaries 80 Villages having Agriculture Power Supply 729 Primary Health Centres 45 Hospitals 36 Villages having Post Offices 362 Primary Health Sub-Centres 373 Hospital Beds 2133 Villages having Banking Facilities 96 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 728 Fertiliser/Seed/Pesticide Outlets [Nos] 207 Agriculture Pumpsets[Nos] 22200 Villages having Primary Health Centres 83 Total N/P/K Consumption [MT] 148745 Pumpsets Energised [Nos] 11982 Villages having Potable Water Supply 729 Certified Seeds Supplied [MT] NA Agro Service Centres [Nos] NA Villages connected with Paved Approach Roads 729 Pesticides Consumed [MT] NA Soil Testing Centres [Nos] NA 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 5527 Plantation nurseries [Nos] NA Total Area Available for Irrigation (NIA + Fallow) 243362 Power Tillers [Nos] NA Farmers' Clubs [Nos] 68 Irrigation Potential Created 225166 Threshers/Cutters [Nos] 18593 Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least 202937 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 148722 Rural/Urban Mandi/Haat [Nos] 38 Wholesale Market [Nos] 37 Area irrigated by Wells 76231 Length of Pucca Road [Km] 828 Godown [Nos] 78 Area irrigated by Tanks 0 Length of Railway Line [Km] 128 Godown Capacity[MT] NA Area irrigated by Other Sources 0 Public Transport Vehicle [Nos] avaerage 409 Cold Storage [Nos] 18 Irrigation Potential Utilized (Gross Irrigated Area) 225166 Goods Transport Vehicle [Nos] NA Cold Store Capacity[MT] 10000 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Avg. Yield Type of Processing Activity No of units Cap.[MT] Crop 2006-07 2011-12 2012-13 [Kg/Ha] Food Area Prod. Area Yield(Kg/H 165 NA Area (Ha) Prod. (MT) (Rice/Flour/Dal/Oil/Tea/Coffee) (Ha) (MT) (Ha) a) Sugarcane (Gur/Khandsari/Sugar) 7 NA Paddy 71300 190800 79600 180500 2461 Fruit (Pulp/Juice/Fruit drink) NA NA Wheat 8000 20700 6200 18900 2789 Spices (Masala Powders/Pastes) NA NA Sugarcane 105900 694200 98900 74110 3752 Dry-fruit (Cashew/Almond/Raisins) NA NA Cotton 9000 33800 1300 4000 3670 Cotton 1846 NA Jowar 18200 20400 18700 22100 1152 Milk (Chilling/Cooling/Processing) NA NA Groundnut 8000 8600 8200 10200 1160 Animal feed NA NA Production of Cotton(lint), is in Bales(177.8 kg per bale in India) 17. ANIMAL POPULATION AS PER CENSUS 2012 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES

Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] Animal Markets [Nos] 40 NA

Cattle - Cross bred 154 15 139 Disease Diagnostic Centres [Nos] 11 Milk Collection Centres [Nos] NA Cattle - Indigenous 326 37 289 Artificial Insemination Centers [Nos] 16 Fishermen Societies [Nos] 38 Buffaloes 322 22 300 Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] NA Sheep - Cross bred 0 0 0 Animal Husbandry Tng Centres [Nos] NA Fish Markets [Nos] NA

Sheep - Indigenous 1 1 1 Dairy Cooperative Societies [Nos] 512 Poultry hatcheries [Nos] NA Goat 151 49 102 Improved Fodder Farms [Nos] NA Slaughter houses [Nos] NA Pig - Cross bred 94 31 64 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY

Pig - Indigenous 68 30 38 Fish Production [MT] 10414 Per cap avail. [gm/day] 6.7 Horse/Donkey/Camel 2 1 1 Egg Production [Lakh Nos] 551 Per cap avail. [nos/p.a.] 0.04 Poultry - Cross bred 204 63 141 Milk Production ['000 MT] 217 Per cap avail. [gm/day] 139 Poultry - Indigenous 10 4 6 Meat Production [MT] NA Per cap avail. [gm/day] NA

Sources (if not Item Nos. 1, 6, 7, 9 & 10 - Census 2011; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of mentioned against the Agr./Water Resources; Item No. 8 - BPL Survey 2002; Item No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; respective item): Item No. 17 - AH Census 2012; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. of Eco. & Stat.

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PLP 2016-17 Surat District

Banking Profile

District - Surat State - Gujarat Lead Bank - Bank of Baroda

1. NETWORK & OUTREACH (As on 31/03/2015)*PACS in Surat No. of No. of Branches No. of non-formal agencies assoiated* Per Branch Outreach Agency Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 40 562 170 66 326 1 6979 163 2 2719 Regional Rural Bank 1 28 20 4 4 - 862 - 40 74332 District Central Coop. Bank 1 63 33 8 22 - 1118 - 15 26760 Coop. Agr. & Rural Dev. Bank 1 8 6 1 1 - - - 91 167250 Primary Agr. Coop. Society* 166 166 166 - - - - - 4 8060 Others ------All Agencies - 827 395 79 353 1 8959 163 1 1998

No. of accounts Amount of Deposit [Rs.000] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%)

Commercial Banks NA NA NA NA NA 328586400 365896700 431681300 17.98 92.37 Regional Rural Bank NA NA NA NA NA 488700 763600 1179400 54.45 0.25 Cooperative Banks NA NA NA NA NA 26466900 33289300 34460000 3.52 7.37 All Agencies NA NA NA NA NA 355542000 399949600 467320700 16.84 100.00 3. LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [Rs.000] Agency 31-Mar-12 31-Mar-13 31-Mar-14 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks NA NA NA NA NA 259598000 307202600 401230800 30.61 97.38 Regional Rural Bank NA NA NA NA NA 288300 606000 859000 41.75 0.21 Cooperative Banks NA NA NA NA NA 6878900 8439400 9954400 17.95 2.42 All Agencies NA NA NA NA NA 266765200 316248000 412044200 18.55 100.00 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During 2014-15 Cumulative Agency Agency 31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 84 78 192 Commercial Banks NA NA NA NA Regional Rural Bank 79 73 73 Regional Rural Bank NA NA NA NA Cooperative Banks 25 28 32 Cooperative Banks NA NA NA NA Others - - - Others NA NA NA NA All Agencies 75.03 79.07 88 All Agencies NA NA NA NA 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women

Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total [Rs.'000] Loans [Rs.000] Loans [Rs.000] Loans [Rs.000] Loans [Rs.'000] Loans Commercial Banks 189221700 61.60 16484800 5.37 15219600 4.95 399400.00 0 11505200 3.75 Regional Rural Bank 727400 120.03 255900 42.23 182900 30.18 0 0 80700 13.32 Cooperative Banks 9014200 106.81 7634400 90.46 1599900 18.96 - - 343900 4.07 Others ------All Agencies 198963300 62.91 24375100 7.71 17002400 5.38 399400 0.13 11929800 3.77 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2011-12 2012-13 2013-14 Average Agency Target Ach'ment Ach'ment Target Ach'ment Target [Rs Ach'ment [Rs. Ach'ment Ach[%] in last Ach'ment [%] [Rs.000] [Rs. 000] [%] [Rs.000] [Rs000] 000} 000] [%] 3 years Commercial Banks 20468100 25570100 125 26759700 39106600 146 35547600 50147800 141 139 Regional Rural Bank 194200 73300 38 136100 223500 164 312800 469500 150 119 Cooperative Banks 5050100 4658400 92 4135700 4703800 114 2696000 7874200 292 145 Others ------All Agencies 25712400 30301800 118 31031500 44033900 142 38556400 58491500 152 139 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2011-12 2012-13 2013-14 Average Broad Sector Target Ach'ment Ach'ment Target Ach'ment Ach'ment [%] Target [Rs Ach'ment [Rs. Ach'ment Ach[%] in last [Rs.000] [Rs.000] [%] [Rs000] [Rs. 000] 000] 000] [%] 3 years Crop Loan 8105900 1740800 21 9973900 4344400 44 12447600 5087800 41 37 Term Loan (Agr) 1647200 7276500 442 3439100 6083500 177 3778700 9742700 258 261 Total Agri. Credit 9753100 9017300 92 13413000 10427900 78 16226300 14830500 91 87 Non-Farm Sector 7717400 14137300 183 9325000 22905000 246 17662400 42338800 240 229 Other Priority Sector 6241900 7147200 115 7893500 10701000 136 4667700 13222000 283 165 Total Priority Sector 23712400 30301800 128 30631500 44033900 144 38556400 70391300 183 156 9. RECOVERY POSITION 2012-13 2013-14 2014-15 Average Rec. Agency Demand [Rs. Recovery Recovery Demand Recovery Demand [Rs. Recovery [Rs. Recovery [%] in last 3 Recovery [%] '000] [Rs. '000] [%] [Rs. '000] [Rs. '000] '000] '000] [%] years Commercial Banks NA NA NA NA NA NA NA NA NA NA Regional Rural Bank NA NA NA NA NA NA NA NA NA NA Cooperative Banks 1078260 1072539 99 1641907 1637462 99 2741413 2735723 99 99 Others NA NA NA NA NA NA NA NA NA NA All Agencies #DIV/0! NA NA #DIV/0!

Sources : Lead Bank & SLBC

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