PLP 2016-17 Dhubri District EXECUTIVE SUMMARY The theme for the PLP 2015-16 is “Accelerating the pace of capital formation in agriculture and allied sector”. 1. Introduction to PLP for 2016-17 The criticality of capital formation ‘in’ and ‘for’ agriculture need not be overemphasized. However, the recent declining trend in investment credit vis-à-vis crop loan has serious implications for sustaining capital formation. The theme selected for the PLP 2016-17 is “Accelerating the pace of capital formation in agriculture and allied sector”. The PLP maps the potential in priority sector which could be exploited with institutional credit within a specified time frame. PLP is intended to provide a meaningful direction to the flow of credit to different sectors at the ground level taking into account all relevant factors. The various linkages and other support required to be provided by line departments to facilitate credit flow as planned are also listed in the PLP. NABARD in the year 2012-13 had prepared Base PLP for five years, coterminous with the XII Five year plan-(2012-17). The Base PLP projected a five year credit potential under priority sector covering Primary, Secondary and Tertiary sectors, with an emphasis on the Primary sector. These projections were based on parameters such as technical feasibility, availability of infrastructure, availability of exploitable resources, cropping pattern, agriculture practices and other developmental indices such as access to markets, etc. Some of these parameters may have undergone a change in the district since the finalization of Base PLP on account of factors such as changes in Government’s priorities and policies, strengthening of rural infrastructure, market forces, cost escalation, etc., necessitating a re-look at the credit potential for the year 2016-17. 2. Salient features of Dhubri District: The Chief Minister of Assam announced on 15 August 2015 the bifurcation of Dhubri district in two districts viz., Dhubri and South Salmara. Formal Notification is awaited. The geographical area of undivided Dhubri district is 2176 sq.km and is divided into 15 Development Blocks. Dhubri falls in the Lower Brahmaputra Valley zone. Dhubri district was curved out of erstwhile Goalpara district on 1st July, 1983.The mighty Brahmaputra divides the district into two parts i.e. Dhubri and Bilasipara Sub-divisions in the north and South Salmara-Mankachar-Hatsingimari Subdivision in the south bank. Dhubri district is bounded both by inter-state and international border i.e. West Bengal and Bangladesh in the west, Goalpara and Bongaigoan district of Assam and Garo Hills district of Meghalaya in the east, Kokrajhar district in the north, Bangladesh and state of Meghalaya in the south. The population of the district as per census 2011 is 1949258. Dhubri district is primarily dependent on agriculture and forest products. Main agricultural crop is paddy with surplus in production than its requirement. Jute and Mustard seed occupy the major share of cash crops. From forest mainly timber and bamboo add to the income. The mighty Brahmaputra, Gangadhat, Gadadhar, Tipkai, Gingiram flow in the district. Heavy rainfall,coupled with high intensity of wind causes severe soil erosion, particularly on upper reach and in flood prone areas. About 72% of rainfall is received during May to August. The cropping intensity is 129%. 3. Sectoral trends in credit flow: Overall lending to the priority sector was 34% during 2014-15. Crop loans lending was 74.15% but agricultural term loan was less than 6%. The average lending under MSME sector during the last three years was 107%. 4. Banking Profile: The credit requirement of the district is being met through 66 branches of 16 banks i.e. 49 branches of commercial banks, 15 branches of RRB (AGVB) and 2 branches of SCB. UCO Bank is the Lead bank. The CD ratio is 46% only for the district as a whole. 5. Policy Initiatives: The Government of India, Reserve Bank of India, State Governments and NABARD have been taking a number of policy measures for the development of agriculture and rural sector and accelerating credit flow. 6. Ongoing Government Sponsored Programs/schemes: A large no. of Government Sponsored Programs /schemes - both centrally funded and State Govt. funded are currently implemented by various Departments in the district. It is expected that this will serve as ready reckoner for the PLP users. 1 PLP 2016-17 Dhubri District 7. Brief Sectoral Review/Comments and Projection of Potentials for 2016-17: The Base PLP projection (2012-17) for the year 2016-17 was estimated at `.26158.87 lakh. It is expected that there will be increase in the cost of various agriculture inputs including labour cost, fuel price hikes and certain factors like forecast of normal rainfall. However, the ground level credit flow under some of the sectors has not improved and the growth of credit flow is declining due to farmers not being able to fulfill the terms and conditions of the credit institutions. Accordingly, the revised PLP projections for 2016-17 is estimated at `.34354.13 lakh, comprising of `.20153.38 lakh for Farm credit (`.13092.83 lakh for Crop Loans and `.7060.55 lakh for Agri Term Loans), `.3636 lakh for MSME Sector, etc. Financial projections for some of the sectors for the year 2016-17 are given as under: a. Crop Loan: Short term credit for crop production plays important role in changing the face of economic scenario of the district. Supply of quality seeds, coverage of non-loanee farmers and financing tenant farmers through JLG/LCEC mode, implementation of revised KCC norms, quality seeds, seed replacement, strong extension system, utilisation of extension officers exclusively for extension job, storage facilities at village / panchayat level and promotion of latest agricultural technologies etc. will enhance the credit flow under crop production. These initiatives would increase the demand for crop loans which is projected at `.13092.83 lakh during 2016-17. b. Water Resources: Dhubri district has a good number of rivers including the mighty Brahmaputra that divides the district into two parts i.e. Dhubri and Bilasipara Sub-divisions in the north and South Salmara-Mankachar-Hatsingimari Subdivision in the south bank and Gangadhat, Gadadhar, Tipkai, Gingiram rivers. These rivers offer a high potential for flow and lift irrigation. As per Statistical Hand Book, Assam 2014, total Irrigation Potential Created is estimated at 266632 ha. Financial requirement for exploitable potential is projected at `.699.60 lakh during 2016-17. c. Farm Mechanization : In order to encourage mechanisation in agriculture, more focus needs to be given on usage of farm implements. Repairing services and agro service centers are essential for supporting the mechanization in the district. Credit potential is projected at `.1700.36 lakh during 2016-17. d. Plantation and Horticulture: Horticulture is one of the thrust areas in the overall development of Dhubri district and it is aimed for sustainable development of Horticulture by increasing area, productivity, by encouraging post harvest management in Horticulture sector. Ample scope exists for expanding the cold storage capacity, quality planting material, processing units, grading packing and marketing facilities. Financial projection under the sector for 2016-17 has been assessed at `.822.15 lakh. e. Forestry and Wasteland Development: The forest is an important source of firewood and fodder. Development of forestry could help enhance the environment. Financial requirement is estimated at `.150.94 lakh for 2016 -17. f. Animal Husbandry: Animal Husbandry is the main agri-allied activities for the rural population of the district. There is a huge gap in demand and supply of milk and meat. Financial projection under the sector including Dairy, Poultry, Goatery, etc. for 2016-17 has been assessed at `.3022.11 lakh. g. Agriculture Infrastructure (Storage Facilities, Land Development, Soil Conservation, Watershed Development & Other Agriculture Infrastructure) & Ancillary Activities: There is need for establishment of rural godowns, seed processing plants, threshing floors, drying yards, Land Development, Soil Conservation and other post harvest infrastructure. All godowns above 1000 MT capacity need to be registered with warehousing authority after due accreditation. Negotiable warehouse receipt system may be encouraged, as this will reduce distress sale immediately after harvest. Financial projection under the sector for 2016-17 has been assessed at `.2141.11 lakh. h. Micro, Small & Medium Enterprises (MSME) : Setting up common facility centers, enhancing the skills of existing and prospective entrepreneurs, uninterrupted power supply to MSME units, transparent pricing, improved cleaning, sorting & grading facilities, and adequate finance to agro processing units are the important critical interventions required to tap the potentials available under the sector. All the Banks and Govt. Departments have to adopt integrated approach to intensify credit for MSME in the district. Financial projection under the sector for 2016-17 has 2 PLP 2016-17 Dhubri District been assessed at `.3636.00 lakh. i. There is an imperative necessity to promote export in Indian economy. In Dhubri district there are 2 nos. of International Border Trade Centres exporting materials mainly to Bangladesh. An ambitious estimation of `.1008 lakh has been made for the export sector keeping in view the existing potential and anticipated supports from stakeholders like creation of awareness about the existing export potential and procedures among the farmers and entrepreneurs. j. Education is central to the Human Resources Development and empowerment in any country. Good number of educational institutions and institutions of higher learning in both the public and private sector in the district fuel the need for educational loans. In view of this, a credit potential of `.490 lakh has been estimated for extending education loan in the district. k. As per census 2011, out of 4.15 lakh households of Dhubri district, 0.88 lakh household have pucca dwellings. Remaining 3.27 lakh households either reside in kachha houses or dilapidated shelter.