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.

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.

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

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

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. b). There is a menace of wild animals such as wild pig, Blue Bell etc. and it is a danger for seeds planted and growing crop in the district. Community based "farm fencing"/ protection wall for entire farm area of community with nearby forest/ riverbanks is very cost effective and may be considered as essential requirement for Agriculture Development. VI). Level of Poverty: As per 2011 census, there is 180231 rural house hold and 26508 urban house hold with total 206739 house hold in newly carved Aravalli district. BPL family in the district having 0 to 16 score is 29314 and having 17 to 20 score is 39639, thus family below poverty line is 33.35% in the Aravalli. District Profile - Sabarkantha District - Sabarkantha State - Gujarat Division - North Gujarat 1. PHYSICAL & ADMINISTRATIVE FEATURES Sabarkantha 2. SOIL & CLIMATE Sabarkantha Total Geographical Area (Sq.km) 4066 Agro-climatic 13 Sub Region North of Gujarat Zone No. of Sub Divisions -- No. of Blocks 7 Climate Hot No. of Villages (Inhabited) 700 Soil Type Hard rock, formation sand stone and alluvial No. of Panchayats 700 3. LAND UTILISATION [Ha] Sabarkantha 4. RAINFALL Sabarkantha & GROUND WATER Sabarkantha Total Area Reported (ha.) 406622 Rainfall [in mm] Normal Actual 2012 2013 2014 Forest Land 76644 921 806 852 978 921 Area Not Available for Cultivation 24608 Variation from Normal 46 172 115 Permanent Pasture and Grazing Land 17803 Availability of Net annual recharge Net annual draft Balance Ground Water [Ham] Land under Miscellaneous Tree Crops NA 940.98 687.04 131.42 Cultivable Wasteland NA 5. DISTRIBUTION OF LAND HOLDING -Sabarkantha Current Fallow 24122 Classification of Holding Holding Area Other Fallow NA Nos. % to Ha. % to Total Total Net Sown Area 241411 <= 1 Ha 51431 40.06 22610 10.55 Total or Gross Cropped Area 382867 >1 to <=2 Ha 40054 31.2 51113 23.85 Area Cultivated More than Once >2 Ha 36903 28.74 140589 65.60 Cropping Intensity [(GCA/NSA)X100] 158 Total 128388 100.00 214312 100.00 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] - Sabarkantha SABARKANTHA Cultivators in Sabarkantha 128 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 91 Population 1388 711 677 1151 237 Agricultural Laborers 121 Scheduled Caste 125 65 61 105 20 Workers engaged in Household Industries 4 Scheduled Tribe 329 165 163 314 15

PLP-2016-17 Sabarkantha District

Workers engaged in Allied Agro-activities 76 Literate 897 518 379 721 176 Other workers 172 BPL (Families) 69 8. HOUSEHOLDS [in '000] Sabarkantha 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Sk & Aravalli Total Households 207 Having brick/stone/concrete 371 Having electricity 400 houses supply Rural Households 180 Having source of drinking 356 Having independent 115 water toilets BPL Households SK & Aravalli 69 Having access to banking services Having radio/tv sets 1725 10. VILLAGE-LEVEL INFRASTRUCTURE [No] SK & 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [No] Sk & Aravalli Aravalli Villages Electrified 1372 Anganwadis 3205 Dispensaries - Villages having Agriculture Power Supply 1372 Primary Health Centers 65 Hospitals 22 Villages having Post Offices 510 Primary Health Sub-Centers 10 Hospital Beds 930 Villages having Banking Facilities 1205 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Sk & Aravalli Villages having Primary Schools 1360 Fertilizer/Seed/Pesticide 2503 Agriculture Pump 73714 Outlets [No] sets[No] Villages having Primary Health Centers 492 Total N/P/K Consumption 1021 Pump sets Energized 45974 [MT] [No] Villages having Potable Water Supply 1372 Certified Seeds Supplied [MT] 298 Agro Service Centers 45 [No] Villages connected with Paved Approach 1356 Pesticides Consumed [MT] Soil Testing Centers 7 Roads [No] 13. IRRIGATION COVERAGE [Ha] Sk & Aravalli Agriculture Tractors [No] 28372 Plantation nurseries 265 [No] Total Area Available for Irrigation (NIA + 177325 Power Tillers [No] 14107 Farmers' Clubs [No] 451 Fallow) Irrigation Potential Created 204700 Threshers/Cutters [No] 2390 KVKs [No] 1 Net Irrigated Area(Total area irrigated at 179300 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING SK & least once) Aravalli Area irrigated by Canals / Channels 23200 Rural/Urban Mandi/Haat [No] 13 Wholesale Market 8 [No] Area irrigated by Wells 154300 Length of Pucca Road [Km] 4397 Warehouse Godown 451 [No] Area irrigated by Tanks 600 Length of Railway Line [Km] 186 Godown Capacity[MT] 10000 Area irrigated by Other Sources 1200 Public Transport Vehicle [No] 273865 Cold Storage [No] 30 Irrigation Potential Utilized (Gross 40.75% Goods Transport Vehicle [No] 14107 Cold Store 150000 Irrigated Area) Capacity[MT] 15. AGRO-PROCESSING UNITS SK & Aravalli 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS SK & Aravalli Type of Processing Activity No of Cap.[MT] Crop 2012-13 2013-14 Avg. Yield units [Kg/Ha] Food (Rice/Flour/Dal/Oil) 35 1/-/4/6/-/- Area in '00' Production Area in Production Yield(Kg/Ha Ha in '00' MT '00' Ha in '00' MT ) Sugarcane - - Cotton 1383 269.73 1261 304.85 2417 (Gur/Khandsari/Sugar) Fruit (Pulp/Juice/Fruit drink) 1 Bajara 52 4.58 33 2.91 1098 Spices (Masala Powders/Pastes) NA NA Wheat 1543 347.14 1716 385.96 2471 Dry-fruit (Cashew/Almond) 1 NA Maize 594 360.1 579.85 944.92 1630 Cotton (Ginning/Spinning) Potato 118 118 387 169 427 Milk 6 800 pulses 241 257.66 255 272.63 107 (Chilling/Cooling/Processing) Meat (Chicken/Mutton) 1 106 Fennel 18 39.6 56 113 200 Animal feed (Cattle/Poultry) 1 158000 Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India) 17. ANIMAL POPULATION AS PER CENSUS 2012[in Nos.] 8. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES SK & Aravalli SK & Aravalli

Category of animal Total Male Female Vet. Hospitals/Dispensaries 87 Animal Markets [No] Nil [No] Cattle - Cross bred Disease Diagnostic Centers 37 Milk Collection 1874 286707 20771 265936 [No] Centers [No] Cattle - Indigenous Artificial Insemination 432 Fishermen Societies 20 442143 237611 204532 Centers [No] [No] Buffaloes 736475 54969 681506 Dairy Cooperative Societies 1874 Poultry hatcheries 1

PLP-2016-17 Sabarkantha District

[No] [No] Sheep - Indigenous 61892 13061 47438 Improved Fodder Farms [No] nil Slaughter houses [No] nil Goat 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY SK & 333244 72433 260811 Aravalli Pig - Indigenous 111 81 30 Fish Production [MT] 73 Per cap avail. [gm/day] Horse/Donkey/Came 556/3159/1635 (No.) Production [Lakh No] 135 Per cap avail. 0.03 l [No/p.a.] Poultry - Indigenous 191341 Milk Production ['000 MT] 914 Per cap avail. 106 [gm/day] Data Source : District Statistical Department, Agri Department & Statistical Report

PLP-2016-17 Sabarkantha District

Banking Profile District - Sabarkantha State - Gujarat Lead Bank - Dena Bank

1. NETWORK & OUTREACH (As on 31/03/2015) Agency No. of No. of Branches No. of non-formal agencies Per Branch Outreach Banks/Soc. associated Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Househol ds Commercial Banks 21 99 45 54 0 4804 130 575 227282 Regional Rural Bank 1 23 14 9 0 1482 41 135 49845 District Central 1 83 77 6 0 579 0 0 0 Coop. Bank Coop. Agr. & Rural 1 5 1 4 0 0 0 0 0 Dev. Bank Primary Agr. Coop. 314 314 314 0 0 0 0 0 0 Society Others 6 18 3 15 0 0 1634 0 0 0 All Agencies 344 542 454 88 0 8499 171 710 277127 2. DEPOSITS OUTSTANDING Agency No. of accounts Amount of Deposit [`'000]

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 35903700 27526300 59972600 117.87 75.34 Regional Rural Bank 359037 333904 325600 (-) 2.49% 3955100 3674700 4181400 13.79 5.25 Cooperative Banks 443160 253852 522182 105.70% 10389800 8241100 9635200 16.92 12.10 Others NA NA NA NA NA 7015600 3889600 5813700 49.47 7.30 All Agencies NA NA NA NA NA 57264200 43331700 79602900 83.71 100.00 3. LOANS & ADVANCES OUTSTANDING Agency No. of accounts Amount of Loan [Rs.'000] 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 24461400 9824400 43733300 345.15 72.13 Regional Rural Bank 38566 48620 16688 (-) 66% NA 2366300 1109100 1958800 76.61 3.23 Cooperative Banks NA NA NA NA NA 7002300 5887500 6319100 7.33 10.42 Others NA NA NA NA NA 9337400 2529200 8622900 240.93 14.22 All Agencies NA NA NA NA NA 43167400 19350200 60634100 213.35 100.00 4. CD-RATIO 5. PERFORMANCE UNDER FIN. INCLUSION (No. of A/Cs) Agency CD Ratio Agency During 2014-15 Cumulative '31-Mar-13 '31-Mar-14 '31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 71 84 74 Commercial Banks 124115 NA 124115 NA Regional Rural Bank 60 45 47 Regional Rural Bank 33315 NA 33315 NA Cooperative Banks 67 66 69 Cooperative Banks NA NA NA NA Others 137 191 149 Others 9205 NA 9205 NA NA All Agencies 79 88 85 All Agencies 166635 NA 166635 NA 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Agency Priority Sector Loans Loans to Agr. Sector Loans to Weaker Loans under DRI Scheme Loans to Women Sections 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 9824400 50.77 12055800 55 3986200 18 12500 0.06 1189100 6.15 Regional Rural Bank 1109100 5.73 1262300 76 837100 51 0 0 167300 0 Cooperative Banks 5887500 30.43 4235300 95 2206400 44 0 0 103300 0 Others 2529200 13.07 2255700 30 791700 11 100 0.00 163400 0 All Agencies 19350200 100 19809100 54 7821400 21 12600 0.06 1623100 6.15

7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Agency 2012-13 ( Un Divided Sabarkantha) 2013-14 ( Divided Sabarkantha) 2014-15 ( Divided Sabarkantha) Avg. Ach[%] ) in last 3 years Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment [Rs.'000] '000] [%] [Rs.'000] [Rs. '000] [%] [Rs.'000] [Rs. '000) [%]

Commercial Banks 10722800 10850300 101 9003500 9824400 109 11852100 15738000 133 114.33 Regional Rural Bank 1577700 1103200 70 1392500 1109100 80 1704700 1374000 81 77.00

PLP-2016-17 Sabarkantha District

Cooperative Banks 6479900 6845900 105 5634000 5887500 105 5977100 6239400 105 105.00 Others 359100 1362300 379 456200 2529200 554 1034000 4554900 441 458.00 All Agencies 19139500 20161700 105 16486300 19350200 117 20567900 27906300 136 119.33 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Broad Sector Average 2012-13 2013-14 2014-15 ( Divided Sabarkantha) Ach[%] in last 3 years Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment [Rs.'000] '000] [%] [Rs.'000] [Rs. '000] [%] [Rs.'000] [Rs. '000] [%]

Crop Loan 13244600 13891900 105 8770800 12093300 138 14215700 16507800 116 119.67 Term Loan (Agr) 3590700 3087900 85 4733900 2467100 52 2548600 6335700 248 128.33 Total Agri. Credit 16835300 16979800 101 13504700 14560400 108 16764300 22843500 136 115.00 Non-Farm Sector 383400 816300 213 579400 2179700 376 1338400 1518900 263 284.00 Other Priority Sector 1920800 2365600 123 1244800 1212000 97 2465200 1543900 63 94.33 Total Priority Sector 19139500 20161700 105 16486300 19350200 117 20567900 27906300 136 119.33 9. RECOVERY POSITION ( As on 30 June) Agency Average 2012-13 2013-14 2014-15 Rec. [%] in last 3 years Demand [Rs. Recovery [Rs. Recovery Demand [Rs. Recovery Recovery Demand [Rs. Recovery Recovery '000] '000] [%] '000] [Rs. '000] [%] '000] [Rs. '000] [%] Commercial Banks Regional Rural Bank 1351165 1156625 86 1755184 1531244 87 1332709 1147957 86 86 Cooperative Banks 7749380 7640441 99 7663072 7599680 99 12105843 11953108 99 99 Others All Agencies 9100545 8797066 97 9418256 9130924 93 13438552 13101065 97 96 Information/ data given above for 2014 & 2015 is pertains to divided Sabarkantha earlier figures are pertains to erstwhile Sabarkantha, Source : LBC Himatnagar & SLBC