PLP 2016-17 Gir Somnath District EXECUTIVE SUMMARY A. Introduction Gir Somnath is primarily an agricultural district with Cotton, Groundnut and Sugarcane as the predominant crops. The other major crops cultivated are wheat, sesam, bajara, jowar . About 71 % of land holdings are with small and marginal farmers and the average size of the holdings is 2.0 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.352906.94 lakh, of which, Crop Production sector has a major share of 38.64 % at ` 136386.27 lakh. Term loan under agriculture is assessed at ` 88288.91 lakh accounting for about 39.3 % of total agriculture. Under MSME, ` 26397.01 lakh has been assessed as potential forming 7.63% and balance at ` 101834.75 lakh has been estimated for other sectors like Exports, Education, Housing, . The activity-wise and block-wise assessment of potential is presented in Annexure I. The PLP projection for 2016-17 is higher by Rs. 103869.45 lakh when compared to the PLP for the year 2015-16 representing an increase of 42.9%. Further, the PLP projection is higher by ` 103867.47 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 There is need to adopt of advanced technologies for the restoration of soil health, increase 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 Precision farming for Vegetables, Drip irrigation for cotton, Sprinkler irrigation for groundnut . 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. Banks may encourage marketing credit on the basis of Negotiable Warehouse Receipt issued by accredited godowns. 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 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. Salinity ingression has affected coastal areas. There is a need to encourage change in the cropping pattern from high irrigation density crops to low irrigation density crops in the coastal belt. 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. Banks may come forward to finance power tillers as it is affordable and very useful for small and marginal farmers 4. Plantation and Horticulture Horticulture crops could be encouraged as an alternative to the traditional cropping pattern in the district. Vegetables and Floriculture may be encouraged under modern methods like Green house/controlled conditions with bank credit. The Departments of Horticulture and 1 PLP 2016-17 Gir Somnath District Agriculture may popularise suitable horticulture crops for development in cultivable wastelands and saline/alkaline areas. 5. 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. 6. MSME Banks should step up their lending to MSME sector including provision of adequate Working Capital assistance. Handloom Weavers and Handicrafts sectors in the district offer 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. Thrust areas for 2016-17: The PLP document lays emphasis on the following areas and calls 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. Looking to the potential and available infrastructure, two activities i.e. Land Development and Silt Application have been identified under Area Development Plan. Critical infrastructure support in various sectors as identified in Chapter 4. Ensuring capital formation in agriculture by financing potential sectors mainly Farm Mechanization, Rural godowns, Dairy and Food and Agro processing. Capacity building of SHGs ( Sakhimandals ) and upscaling of SHG linkage Effective implementation of Financial Inclusion plans including coverage of Oral Lessees, Tenant Farmers as Joint Liability Groups, . E. Conclusion The major driver of private sector 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. 2 PLP 2016-17 Gir Somnath District Broad Sector wise PLP projections - 2016-17 (Rs. lakh) Sr.No. Particulars PLP Projections 2016-17 A Farm Credit I Crop Production, Maintenance and Marketing 136386.27 II Term Loan for agriculture and allied activities 76968.79 Sub Total 213355.06 B Agriculture Infrastructure 8705.63 C Ancillary Activities 2614.50 I Credit Potential for Agriculture (A+B+C) 224675.18 II Micro, Small and Medium Enterprises 26397.01 II Export Credit 2000.00 IV Education 10800.00 V Housing 72900.00 VI Renewable Energy 183.75 VII Others 15755.00 VIII Social Infrastructure involving bank credit 196.00 Total Priority Sector (I to VIII) 352906.94 PLP 2016-17 Crop loan Term Loan for Agriculture Agriculture Infrastructure Ancillary Activity MSME Export credit Education Housing Renewable Energy Others Social Infrastructure 3 PLP 2016-17 Gir Somnath District Summary of Sector / Sub-sector wise PLP projections - 2016-17 (` lakh) Sr.No. Particulars PLP Projections 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 136386.27 ii Water Resources 6924.36 iii Farm Mechanisation 7724.74 iv Plantation and Horticulture (including sericulture) 13568.85 v Forestry and Waste Land Development 151.16 vi Animal Husbandry – Dairy 1236.98 vii Animal Husbandry – Poultry 31.77 vii Animal Husbandry – Sheep, Goat, Piggery, 27.83 ix Fisheries (Marine, Inland, Brackish water) 46075.35 x Others – Bullock, Bullock cart, . 1227.75 Sub Total 213355.06 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage chains) 4116.75 ii Land development, Soil conservation, Watershed development 3700.88 iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting) 888.00 Sub Total 8705.63 C Ancillary Activities i Food and Agro processing 2254.50 ii Others (Loans to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) 360.00 Sub Total 2614.50 Total Agriculture 224675.18 II Micro, Small and Medium Enterprises I MSME – Working capital 17257.51 II MSME – Investment credit 9139.50 Total MSME 26397.01 III Export Credit 2000.00 IV Education 10800.00 V Housing 72900.00 VI Renewable Energy 183.75 VII Others 15755.00 VIII Social Infrastructure involving bank credit 196.00 Total Priority Sector 352906.94 4 PLP 2016-17 Gir Somnath District 5 PLP 2016-17 Gir Somnath District District Profile District - Gir Somnath State - Gujarat Division - Saurashtra 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 3755 Agro-climatic Zone Gir Somnath comes under ACRF region No. 13 (7) No. of Sub Divisions nil No. of Blocks 6 Climate Dry Sub humid No. of Villages (Inhabited) 391 Medium to shallow black soil in all blocks and calcareous soil in Soil Type No. of Panchayats 332 Veraval and Sutrapada, Brackish soil in the costal region of Veraval 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 375452 Normal 2012-13 2013-14 2014-15 Forest Land 19778 Rainfall [in mm] 864 358 1132 977 Area Not Available for Cultivation & non agri 170448 Variation from Normal -506 268 113 Permanent Pasture and Grazing Land 11636 Availability of Ground Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops - Water [Ham] NA NA NA Cultivable Wasteland - 5. DISTRIBUTION OF LAND HOLDING Current Fallow Area 642 Classification of Holding Holding Other Fallow 4175 % to Total Ha. % to Total Net Sown Area 205008 <= 1 Ha 35392 35 21969 12 Total or Gross Cropped Area 287863 >1 to <=2 Ha 36234 36 52441 28 Area Cultivated More than Once 85855 >2 Ha 29442 29 114096 61 Cropping Inensity [GCA/NSA] 140.42 Total 101068 100 188506 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 150 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 72 Population 1217 620 597 865 352 Agricultural Labourers 105 Scheduled Caste 104 53 51 87 17 Workers engaged in Household Industries 6 Scheduled Tribe 10 5 5 7 3 Workers engaged in Allied Agro-activities 86 Literate 543 332 211 366 177 Other workers 145 BPL 360 183 177 264 97 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 216324 Having brick/stone/concrete houses NA Having electricity supply NA Rural Households 155020 Having source of drinking water NA Having independent toilets NA BPL Households 73550 Having access to banking services NA Having radio/tv sets NA 10.