PLP-2016-17 Sabarkantha District EXECUTIVE SUMMARY A. Introduction Sabarkantha is primarily an agricultural district with Cotton and wheat as the predominant crops. The other major crops cultivated are oilseeds, maize, potato etc. The small and marginal farmers are 91485 in the district constituting 71% of the total farmers’ population. 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. 286655.52 lakh, of which, Crop Production sector has a major share of 58.94 % at Rs.168978.04 lakh. Term loan under agriculture is assessed at Rs. 60793.70 lakh accounting for about 21.20 % Under MSME, Rs. 36154 lakh has been assessed as potential forming 12.61 % and balance at Rs. 20729.78 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.44549.69 lakh when compared to the PLP for the year 2015-16 representing an increase of 18.40 %. Further, the PLP projection is higher by Rs.44549.69 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. 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 As monsoon continues to be erratic, need for greater focus lies in water resource management. Farmers need to be incentivized 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 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 increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment. 4. Animal husbandry 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. 1 PLP-2016-17 Sabarkantha District C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. NABARD’s initiative on Natural Resources Management with focus on Tribal development in Sabarkantha district are (1). Four watershed projects are under implementation covering about 4955.47 ha. area with total Financial outlays of Rs. 288.02 lakhs. (2). ‘WADI” model is holistic in approach, addressing production, processing and marketing of produce and other livelihood needs. 2000 wadis each of one acre is also under implementation in Bhiloda and Vijaynagar tribal area of the district through grant support under Tribal Development Fund of NABARD.(3). Grant support to DCCB and RRB for Rupay card, ATM, Micro ATM and Financial Literacy Centers also provided by NABARD. (4). Under NABARD - RIDF Rural Road Projects new rural approach roads and C.D. works covering 1159.91 kms. with total expenditure of Rs.17831.06 lakh has been sanctioned in the District so far. Further RIDF assistance also provided for Anganwadi, PHC, CHC, Irrigation Projects, Check dams and Rurban Drainage line projects. (5). For Formation and registration of Farmers’ Producer Organisations NABARD has sanctioned three projects each with grant support of Rs. 10 Lakhs in the district.(6). To ensure effective price protection to the farmer, National Agricultural Market being proposed can be a solution backed by adequate storage facilities. So far NABARD has sanctioned 451 Rural Godowns in the district and further 66 PACS godowns are under construction with the help of subsidy scheme of Government of Gujarat in the district.(7). To give thrust to the identified sector/activity by enhancing term loan disbursements through a banking plan, implementation of area based scheme/s has been suggested as a coordinated effort of NABARD, Lead Bank, other banks, line departments and other important stake holders. (8). GoI has established the National Adaptation Fund on Climate Change (NAFCC) with a budget provision of Rs.350 crores 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 PLP document besides discussing the development initiatives taken by the Government of Gujarat in the fields of agriculture, horticulture, infrastructure focused emphasis on the following areas and called for collective participation of all stakeholders in the district to firm up the credit plan and to work towards achievement of targets for the year 2016-17. Promotion of Joint Liability Groups and ensuring credit linkage Coverage of all eligible farmers under KCC and every household with Active Bank Account with minimum credit. Capacity building of SHGs (Sakhimandals) and upscaling of SHG linkage. Ensuring capital formation in agriculture by financing potential sectors mainly Farm Mechanization, Rural godowns, Dairy and Food and Agro processing. E. Conclusion “There can be little disagreement that the fastest relief to the poor in India would come from productivity growth in agriculture. This is where nearly half of the workforce is employed. With the share of agriculture in the GDP at about 15 percent now, this half of the workforce is also significantly poorer than the other half, employed in industry and services”. Shri Arvind Panagariya, Vice Chairman, NITI Aayog Let the above quote be the guiding factor for implementation of PLP projections 2016-17. 2 PLP-2016-17 Sabarkantha District SABARKANTHA DISTRICT Broad Sector wise PLP Projections 2016-17 (₹.lakhs) Sr. No. Particulars PLP Projections 2016-17 A Farm Credit i Crop Production, Maintenance and Marketing 168978.04 ii Term Loan for agriculture and allied activities 53863.83 Sub Total 222841.88 B Agriculture Infrastructure 3987.36 C Ancillary activities 2942.50 I Credit Potential for Agriculture (A+B+C) 229771.74 II Micro, Small and Medium Enterprises 36154.00 III Export Credit 520.00 IV Education 589.50 V Housing 8896.00 VI Renewable Energy 115.08 VII Others 8613.00 VIII Social Infrastructure involving bank credit 1996.20 Total Priority Sector (I to VIII) 286655.52 Financial Projection – 2016-17 SABARKANTHA Expo rt Credit,Educa tion, Hous ing & o ther 7.23% Micro, Small a nd Medium Enterprises 12.61% Agri. Term Loa n Crop Loan 21.21% 58.95% Crop Loan Agri. Term Loa n Micro, Small a nd Medium Expo rt Credit,Educa tion, Hous ing Enterprises & other 3 PLP-2016-17 Sabarkantha District SABARKANTHA District - Summary of Sector / Sub-sector wise PLP projections - 2016-17 (₹.lakhs) Sr. Particulars PLP Projections No. 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 168978.04 ii Water Resources 12378.95 iii Farm Mechanisation 19194.00 iv Plantation and Horticulture (including sericulture) 1816.85 v Forestry and Waste Land Development 37.30 vi Animal Husbandry – Dairy 10706.00 vii Animal Husbandry – Poultry 80.75 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 83.94 ix Fisheries (Marine, Inland, Brackish water) 59.61 x Others – Bullock, Bullock cart, etc. 9506.43 Sub Total 222841.88 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage 3272.32 chains) ii Land development, Soil conservation, Watershed development 496.79 iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting) 218.25 Sub Total 3987.36 C Ancillary activities i Food and Agro processing 1250.50 ii Others (Loans to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business Centres, 1692.00 Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 2942.50 Total Agriculture 229771.74 II Micro, Small and Medium Enterprises i MSME – Investment Credit 28904.00 ii MSME – Working Capital 7250.00 Total MSME 36154.00 III Export Credit 520.00 IV Education 589.50 V Housing 8896.00 VI Renewable Energy 115.08 VII Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to state 8613.00 sponsored organisations for SC/ST) VIII Social Infrastructure involving bank credit 1996.20 Total Priority Sector 286655.52 4 PLP-2016-17 Sabarkantha District District Profile (I). Predominant economic activities of the district: (a) Agriculture (b) Dairy (c) Mineral wealth (II). Major food / commercial and plantation / horticulture crops Kharif: Cotton, Maize, Groundnut, Pulses and vegetables Rabi: Wheat, Mustard, Garlic, Ginger, Cumin and vegetables (III). Special/additional/other features of the district relevant to credit a).Dairy / milk production is the second main economic activity in the district. b).The agro based activities like rice/ pulse Mills and other agro - processing activities Grading, sorting and packaging have developed well in the district. (IV). Other factors affecting the district rural economy and development of various sectors, are flood, drought, pest attack, hailstorms, etc. (V). Issue Critical to district: a). Low Availability of ground Water in the district and its quality is a matter of concern suitable steps for drinking water is required in over exploited blocks like Idar, Vadali and Prantij.