LLANDAND BANKBANK JOURNALJOURNAL VOLUME 54 DECEMBER 2015 ISSUE III
NATIONAL CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANKS' FEDERATION LTD. Volume 54 Issue III
LAND BANK JOURNAL (QUARTERLY)
DECEMBER 2015
K. K. RAVINDRAN Managing Editor
Published by: NATIONAL CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANKS' FEDERATION LIMITED
701, BSEL TECH PARK, 7th Floor, A-Wing, Opp. Railway Station, Vashi, Navi Mumbai-400 703 Phone No. (022) 27814114, 27814226, 27814426 E-mail : [email protected] Website : www.nafcard.org ! Price ` 15/- per copy CONTENTS
Editorial I Innovative banking model of Primary Agricultural Credit Society (PACS) in Malappuram District, Kerala 1 - Dr P Selvaraj
Feasibility analysis of areca nut + pepper mixed cropping system in Karnataka 13 - Praveen kumbar - S. S.Guledgudda - R. B. Belli - B. C. Rajur
Influence of phosphorus and mycorrhizae on root colonization and spore count at different stages of sugarcane crop 27 - T. Usha Rani - D. Balaguravaiah - M. Bharata laxmi
Biofertilizers: An eco-friendly fertilizer for agriculture 36 - Pavithra, A.H - Priya H.R - Avinalappa H.H - Nandini R.
Social inclusion for rediscovery to new social order 43 - Brij Pal
News & Notes 47
Agricultural News 69
The opinions/views expressed in the Land Bank Journal are not necessarily the official views of the National Cooperative Agriculture & Rural Development Banks' Federation.
december 2015 land bank journal I EDITORIAL
Section 80(P) of Income Tax Act 1961 gives income tax exemption to cooperatives. In 2008 Government amended this section by adding subsection 4 to it. The new subsection states that provisions in section 80(P) shall not apply to a 'cooperative bank' within its meaning as given in the BR Act 1949 except in the case of a Primary Agricultural Credit Society and a Primary Cooperative Agriculture & Rural Development Bank with jurisdiction not more than one taluk. Obvious purpose of subsection 4 is to exclude cooperative banks from the benefit of tax exemption as provided under section 80(P). However, when this subsection states that cooperative banks except a Primary ARDB with jurisdiction not more than one taluk, it implies that a Primary ARDB is also a cooperative bank coming under BR Act which is not correct. It appears that those who drafted this provision committed the mistake of presuming that ARDB is also a bank like a State Cooperative Bank, District Cooperative Bank or an Urban Cooperative Bank and therefore made an exception in the case of Primary ARDB only. It is an error of giving exception from a sector to an entity which does not belong to that sector. In other words, when subsection 4 deals with cooperative banks, an exception to this provision can be given only to an entity which is part of cooperative banks. BR Act defines a cooperative bank either as a State Cooperative Bank, District Central Cooperative Bank or a Primary Cooperative Bank (Urban Cooperative Banks). Moreover, BR Act itself makes a distinction between a Cooperative Bank and a Land Mortgage Bank (by which name ARDBs were known at the time of enacting BR Act). Section 56(c) of BR Act says that cooperative credit societies also include land mortgage banks. This implies that every Land Mortgage Bank irrespective of primary or apex is a cooperative credit society as defined december 2015 land bank journal II in section 5 (cci) of BR Act. Though the Federation had pointed out the drafting error in subsection 4 giving exception to Primary ARDB from cooperative banks as defined in BR Act to which a Primary ARDB does not belong, soon after the Budget, no action was taken by the Government to rectify the error. This has led to a large number of disputes between Income Tax Department and ARDBs across the nation. Income Tax Department started sending assessment notice to SCARDBs taking a view that all types of ARDBs except Primary ARDBs with jurisdiction not more than one taluk belong to the category of cooperative banks as per subsection 4 and therefore are excluded from tax exemption under section 80(P). SCARDBs in most of the States could convince income tax department of their status as cooperative credit society as per the definition of the cooperative credit society given in BR Act. However, in Kerala the matter could not be settled at the level of Department or Tribunal and went to the High Court which equated Kerala SCARDB with State Cooperative Bank for the purpose of applicability of subsection 4 in its final judgement. It is seen that the decision of High Court equating Kerala SCARDB with a State Cooperative Bank as defined in BR Act was the result of inept handling of the case by Bank's counsels right from the appellate level of income tax department. On Bank's appeal against the order of High Court, the Supreme Court of India has now given an interim order restraining income tax department from any action to recover tax from the bank till final decision on the appeal petition.
K. K. Ravindran Managing Editor
december 2015 land bank journal 1 Innovative banking model of Primary Agricultural Credit Society (PACS) in Malappuram District, Kerala.
Dr P Selvaraj*
Introduction Rural Banks (RRBs) but is a Banks play a crucial role in the herculean challenge for Cooperative socio economic development of any Banks. country. Though the Koudilya Arthasastra speaks about existence 2. Grass root level Cooperative of banking practises in India, the Institutions first bank, namely Bank of Bengal A co-operative institution which is was established in 1706. The sector a n a u t o n o m o u s d e m o c r a t i c has becomemore dynamic in recent association, is based on the self-help years. “India’s banking sector is set responsibility, equity and solidarity to transformative changes in the and believes in the ethical values, coming future accompanied by a social commitment of caring for pulsating derivatives market and IT- others. They are more than 100 years induced banking” says RBI Governor old in our country. As can be seen Dr. Raghuram Rajan. We are seeing from Annexure-1 the co-operative emergence of new institutions like Credit structure comprises of urban payments banks, small finance co-operative banks and rural co- banks etc., making the environment. operative Banks. Urban co- Now, every branch of the banks has operative banks consist of a single to prove their worth through fast and tier, namely Urban Co-operative quality services to retain the Banks (UCBs). The rural co- customers and have an eye on their operative credit structure has profitability also for survival. traditionally been bifurcated in to 2 Technological innovations has made parallel wings, ie., short-term and life of customers easier and hence long-term structures. Short-term co- faster and comfortable services operative credit institutions have a become order of the day. Customers federal 3-tier structure consisting of especially young customers, today a large number of Primary will walk into a bank only if there is Agricultural Credit Societies (PACS) ATM Card, Internet Banking, mobile at the grass-root level, District banking, Credit Card, Plastic money, Central Co-operative Banks (DCCBs) e - m o n e y e t c . T h e s e a r e at the district level and State Co- comparatively easy for the newly operative Banks (StCBs) at the started banks and even resource rich state/apex level. The long-term rural commercial banks and Regional co-operative structure has 2 tiers,
* Deputy General Manager & faculty Member, Bankers Institute of Rural Development, a training establishment of NABARD in Mangalore, Karnataka. december 2015 land bank journal 2 n a m e l y S t a t e C o - o p e r a t i v e Loans; 96% preferring NBFCs for Agriculture and Rural Development Gold Loans; 97% had seriously Banks (SCARDBs) at the state level concern about safety and security in a n d P r i m a r y C o - o p e r a t i v e a Cooperative Bank and 95% had Agriculture and Rural Development reservations on technology banking B a n k s ( P C A R D B s ) a t t h e by Cooperative Bank. But today, due taluka/tehsil level. to the innovative business approach adopted, by designing products 3. PACSs in Kerala based on customer demand, the face In Kerala, where the cooperatives of the bank has changed to as a are very strong and vibrant, the p r o f i t - m a k i n g , p o p u l a r a n d PACS are also called as Banks. technology bank in the State. This During the year 2002 as many as PACS has become a successful ...... banks (PACSs) were started in replicable model for similar the name of Service Cooperative institutions in the country, proving banks / Cooperative Rural Banks as the fact that new business approach per registered rules 15(11(A) 3(a), by and changed mindset is the need of the Kerala State government. One the hour for all banks and more s u c h b a n k i s T h e n h i p a l a m particularly for cooperative banks. Cooperative Rural Bank called TCR Bank located at Kohinoor village, 4. NABARD’s Farmers Club T h e n h i p a l a m p a n c h a y a t o f F a r m e r s c l u b , a c o n c e p t Malappuram district of Kerala. The introduced by NABARD on 5th bank was with 100 members and a November 1982, is a grass root level share capital of `75,000. Parallely informal forum, with principles of there were other age old PACSs “development through Credit, functioning in the State. technology transfer, awareness and capacity building”. Every village can TCR bank was continuously promote such club through Banks/ incurring loss till 2009, due to NGOs, with non default customers. various problems like low customer They have to be registered with base, continuous loss in business, NABARD and can conduct farm and poor confidence by the public, non-farm promotional programme inadequate staff and severe financial which are beneficial to bank and the crunches. The bank conducted entire village community. Farmers panchayat survey covering 220 Club is a non for profit, social samples and found that 89% of the organisation and they can receive respondents were unaware about all donations, financial assistance from banking activities of a Cooperative anybody for their activities. For Bank; 93% were depending on initial period of three years NABARD Commercial banks especially New extends support and financial generation banks for their personal assistance and later clubs should december 2015 land bank journal 3 sustain themselves. TCR Bank the major milestones achieved so far. promoted Green Earth farmers Club > The BC addressed the major i n F e b 2 0 1 1 ( R e g n N o . problems of the bank i.e., poor UID:0983131/MLP.134) with 15 customer base, lesser staff and members. During this period, RBI, as lesser volume of business, a financial Inclusion imitative, effectively. permitted banks to use the services > BC appointed agents, who of NGOs/ NBFCs as Business reported to them and the wages C o r r e s p o n d e n t s / B u s i n e s s were fixed by BC. The banks had Facilitators (vide circular DBOD. No. no role in these affairs. BLBC.58/22.01.001/ 2005-06 > H o u s e w i v e s , a n g a n w a d i dated 25 Jan 2006) and NABARD teachers, health workers, was also suggesting PACSs to Pancahayat workers and function as BCs to DCCBs, educated unemployed girls diversifying their activities so as to joined as agents. Agents are become Multi Service credit mostly girls from the same Societies. panchayat and have advantages TCR bank conceived the novel of “known person” tag and with idea of utilising the services of Green age group of 18 to 40 years. Earth farmers Club, as Business Today there are 96 agents and 12 Correspondent, since the club had full time employees with BC. the recognition by NABARD, > The incentive system conceived popularity among the press, and by the bank, motivated the BC local public at large. Leveraging the for their full involvement for brand image of farmers club, the promoting the image of the bank bank planned to expand the and market their products. BC/ customer base. This was the turning FC acted as ambassadors of TCR point for the bank. Necessity is a Bank. mother of invention. Business > The commission was mutually Correspondent is an intermediary fixed for all types of transactions. non profitable organization (Farmers The bank gives a commission of C l u b ) b e t w e e n B a n k a n d 2.5 to 4.0% of the amount beneficiaries, which provides collected under various schemes financial services to the end like savings A/c, pigmy deposit, customers (members) on behalf of Micro savings scheme, loan the Bank. repayment etc., and `2 per 5. 1. Green Earth farmers Club as transaction of credit & deposit in Business Correspondent m i c r o A T M . B a n k g i v e s Green Earth Farmers Club started commission to BC and BC pays f u n c t i o n i n g a s B u s i n e s s the incentive to their agents. Correspondent (BC) to TCR Bank > The whole responsibility of from August 2011. The following are december 2015 land bank journal 4 collection by agents and C h e n a k k a l a n g a d i a n d remittance thereafter was with Parambilpeedika villages. Both walk the BC. Further, BC was in customers and agents visit these responsible for defaults if any. centre for daily transactions. Two > The Bank had entered an agents (one lady and one man) are agreement with BC with suitable working in these Centres from 0930 terms & conditions. hrs to 1700 Hrs daily. Daily about 25 > All the transactions of the BC to 30 customers visit and enjoy the were transparent through the benefits. electronic systems, such as ICT, Collection of new SB account Smart Card, ATM, SMS Alert, E o p e n i n g f o r m s , K Y C , l o a n pass book etc. applications, documentation and > The bank had invested about `30 disbursements are dealt with in lakh for IT infrastructure and these centres. PC, Scanner, Printer, charged `2500 per month as micro ATM, CC TV, Safety locker, Wi- user charges from the BC. Fi facility etc have been providedin these centres, giving a corporate > The ICT helped the bank for the ambiance. Solar panel helps during proper and timely monitoring of power cut. In addition to banking, the activities of BC, ensuring no these centre also book train ticket, mis-utilisation, till date. arrange PAN card, receive electricity > On an average the BC collected and phone bills, recharge mobiles about `1.00 lakh per day during and make payments through first week and `3.00 lakh per Western Union. All these utility day, during third week of every services are also linked to the month. The monthly collection respective bank accounts. was about `50 to 60 lakh. Bank The agents working with the BC pays about `2.50 lakh per month are attached to these centres based as commission to the BC. TDS is on their location. Maintenance of effected for this payment. >these points is with the BC. Bank All the staff of BC wear the does not interfere with these. About similar uniform like that of Bank `50,000 cash is given by the bank to staff. This helps them to have the each of these centres every morning feeling of oneness and sense of and the cash & details of belonging to the bank. transactions are collected back by 5.2 Customer Service points the bank staff in the evening. Bank Keeping the convenience of provides additional cash also as and customers and the agents the when required. The functioning of farmers Club established three the BC does not impose any financial Business centres called “Customer liability on the bank and this is an Service Points” at Komarappadi, added advantage for the bank. The BC has an account in the bank. december 2015 land bank journal 5 During a credit transaction, when one agent working under BC. the customer is paying the cash to Mapping and remapping are done at the agent, BC level. Mapping is mainly for fixing > CBS debit the same amount responsibility. All customers are from the BC’s account and give credit provided with ATM cards. The round to the customer. the clock service through micro ATM > BC software will mark the credit is an added attraction for new against agent/CSP. customers. Micro ATM is the minute > Thus the real time transaction is form of ATM. This constitutes of a happening and the customer gets the tablet, Bluetooth printer and card message alert from the bank. swiping slot. Transactions are fully electronic. Cash dispersing is > By the end of the day, BC will completely done manually. Portable collect the money from agent and micro ATM can work at homes of the credit to BC’s account. customers as well, i.e., door step The reverse is the case with debit banking. transaction. The customer will get The transactions of the customers the amount from BC and the same with the micro ATM are recorded in will credited to the BC’s account and the CBS of the bank through BC give debit to the customer by CBS software by online. Maximum limit 5.3 Technology banking by PACS through micro ATM is `30,000 per In order to attract more customers day. The customer gets the and compete with other banks, TCR confirmation through the SMS in Bank invested in software and his/her mobile. The Bank has hardware infrastructure. The TCR implemented a “clear debit and Bank has installed software’s like credit transaction system”. Core banking software, BC software, 5.4 Green Earth Self Employment ATM switch and Micro ATM switch and hardware like ATM Machine. Training Institute (GSETI) ` Server machine, Micro ATMs, UPS With grant assistance of 8.00 (for server & ATM), Firewall & IT rack lakh from NABARD, Green Earth and 2 PCs (for ATM switch and Farmers Club established GSETI in Backup). All transactions are done 2011. In the same centre Financial online only. They collect user Literacy Credit Counselling Centre charges from BC. (FLC) and Village Knowledge Centre There are 2 softwares ie., Core are functioning. The centre has full- banking Solution for the bank fledged class room and a conference (Becon-pro) and BC software hall, beside an office. GSETI has ((Becon-orbit). Both are with c o n d u c t e d e n t r e p r e n e u r s h i p interface, in message format ISO development training programmes 8583. Every account is mapped with on coconut climbing, Saree designing, Garment Making, Flower december 2015 land bank journal 6 Bouquet making and Metal > promote and market bye Embossing. The trainees have been products of jack fruits financed by the TCR bank. Monthly > arrange marketing for eggs of review meetings and motivational “Mattupavil Muttakrishi” scheme. training programmes for staff & agents are also conducted in this 6.1. Achievements by TCR Bank centre. This model of farmers club as BC h a s d o n e w o n d e r s f o r t h e 5.5 Other activities of the farmers turnaround exercise of the bank. The Club bank started earning profit from During 2011-14 Green Earth 2010 onwards. The operational area Famers club has conducted various for the bank was three Panchayats programmes like exposure visit to namely Thenhipalam, Peruvallur JLGs to Allepy district, Bramagiri and A R Nagar. The bank got ISO project of Wayanad district and 9001:2008 certification in 2011. The agriculture projects in Anakayam total business of the bank was and Trichur. They have participated enhanced from `2.86 cr to `47.63 cr with 2 stalls in Agro food festival in just 5 years. The customer base conducted by Calicut University also increased from 2514 (2010) to during Feb 2013 and sold products 27,931 (2015). The overdue loan made by JLGs for `57,000. Seminars balance was reduced from 88% to on entrepreneurship, mushroom 1.5% through the dedicated work of cultivation, organ donation, plastic the BC. waste disposal etc., have also been The following graph explains the organised. The club availed road of success over the past 5 years. maintenance grant assistance from NABARD for only initial 2 years. Progress of Business Turnover in ` lakhs over years The Farmers club got best farmers Club award from NABARD for the years 2012-13 and 2013-14.
5.6 Future Strategies Green Earth farmers Club propose to expand in the following areas:- > consultancy services to the interested banks on the replication of The bank has only 6 staff i.e., BC model, for a fee. >S e c r e t a r y , A s s t . S e c r e t a r y , work with Calicut University for Accountant, Clerk, Attendant and a mega forest based tourism Project. Peon. President is honorary position. > arrange Inputs supply as well as They do cash management, promote organic farming. processing of applications, Business december 2015 land bank journal 7 rules, Admin controls, data savings scheme (MSS)” through storage/uploading to central which a customer can save l o c a t i o n , R e m u n e r a t i o n varying amount of money in a management and Performance month in his SB, with a standard tracking while the field works are out instruction for debiting for RD sourced to BC. It is highly account. This becomes very economical. The promotional works popular. As on 31 March 2015 done by the staff are also suitably the bank has 6856 accounts rewarded. with `6.75 crores. The working hours of the bank is > The small traders, petty shop from 8 am to 8 pm, with two shifts. owners, Tea masters, street The first shift is from 0800 to 1500 vendors and even Doctors felt Hrs and the second shift is from 1300 difficult to visit the bank for to 2000 Hrs. The second shift officers depositing their daily savings. come for the first shift of next day, so The bank started a new product that there is continuity in cash called “Pigmy deposit” in which 5 handling. The bank extend male agents visit these people on maximum of `25 lakh per customer. daily basis, at a regular time of The bank has started financing JLGs the day, collect their savings and in 2012 and till date it has financed give them printed receipts from 36 JLGs formed by Farmers Clubs, hand machine. The entire with grant assistance from NABARD. savings could be withdrawn at The other business parameters the end of 6 months. The over years are shown in the following “purpose oriented saving” Table-1. became a very popular product. 6.2 New Initiatives by the Bank > Bank encouraged group deposit > Due to the penetration of post scheme locally called Chit fund. office, RD account of the bank All the members operate the chit not popular. The bank designed through the bank account. a new product called “Micro
Table-1 (` in Lakh.. as on 31 March) Parameters 2010 2011 2012 2013 2014 2015 Share capital 1.45 2.47 6.11 9.95 20.22 38.50
Deposits 168.65 317.58 906.38 1433.82 2068.00 2665.92
Loans 118.11 269.40 637.38 1007.33 1377.00 1897.14 Yet to be Profit NA (-) 8.69 (-) 2.73 1.43 4.04 audited Turnover(` crore) 2.86 5.86 15.43 24.41 34.46 47.63
Increase with respect to year 2011 (in %) - - 26.30 416 587 811.45
No of accounts 2,514 7,581 14,930 20,364 23,948 27,931
No of Staff 03 03 03 04 06 06 december 2015 land bank journal 8 > An innovative scheme called > Shortly a new scheme is being Rural Mahila Credit Card i n t r o d u c e d f o r t e r r a c e (RMCC) was introduced to cover cultivation of poultry layers women folk. Under this scheme n a m e l y “ M a t t u p a v i l any lady member could avail of Muttakrishi”. The loan amount over draft facility of `5000 of `5000 would be given in kind without security, withdrawable component ie., a cage and 10 through agents/ micro ATMs. numbers of 50 days old layer Many women got the benefits, birds of Gramashree or when there was delay in getting Gramalakshmi breeds. The money from the husband supply will be through Green working abroad as well as for earth farmers club. About 1000 emergencies. Otherwise they units would be sanctioned by the had to wait at the doorstep of year end. money lenders. > BC maintain agent wise > Two Milk producers Cooperative customer wise case history ie., Societies in the operational area “Customer Register” indicating of the bank, have been revived by the past history of repayment by the dairy farmers financed by the customer. If there is delay/ TCR Bank. Now they are running default, the cells in Excel sheet successfully with profit. TCR are coloured red. The President bank is planning to make them of the bank while sanctioning as BCs for expanding business. loans, pursue case to get > Efforts are being made to link r e g i s t e r e d , a l o n g w i t h interested customers SB application form, appraisal accounts with the SB accounts report, recommendatory notes of Service providers like milk by agent, bank and the Secretary vendors, news paper agents, of Bank. The loans are cable operators, Mobile company sanctioned based on social electricity board etc, so that the structure/customer appraisal monthly payment to these than the value of assets owned service providers could be done by customer. through the bank. The bank will 6.3 Instrumental for Policy transfer the amount after getting a simple SMS from the Customer changes and send SMS confirmation to As this “farmers Club as BC” both the parties. This would be a business model has yielded success great relief both customers and and more suitable for replication, the service providers and the Registrar of Cooperative Societies customer base and transaction has issued a circular to all PACSs/ will improve the business for the Rural Banks to adopt this innovative bank. model for increasing their business december 2015 land bank journal 9 volume and quality of services in 7. Conclusion Kerala. Similarly after seeing the Banks have reservation on the BC successful implementation of Rural model, due to the fear of private Mahila Credit Card scheme, State people invading into the business of Govt replicated the scheme to all the bank. When the farmers club banks under their “Operation promoted by the bank did the job Kubera” scheme which is also called with fully committed heart, it has “Rin mukthi yojana”. In Kerala, the become a grand success. If banking rate of interest changed by is add on activity then the success is cooperative banks are regulated by a casualty. In the present case, the “ C e n t r a l B a n k C o n f e r e n c e ” farmers club played role of conducted annually. TCR bank made ambassador of the bank and the a presentation on their success story fruits of cooperation could be in the conference conducted on 12 enjoyed by bank, farmers club, local Sept. 2014. people, customers, government and T h e b a n k r e c e i v e d b e s t everyone, proving the cooperative performance award from NABARD principle of “each for all and all for for the years 2012-13 and 2013-14. each”. They also got bank frontier award Among all, cooperative banks are 2015. Many banks including RRBs, the banks that are close to public. Commercial banks, PACSs and other But during recent years the public Service Cooperative Banks are are attracted towards modern visiting TCR Bank for the guidance. technology linked banking products offered by other banks. Cooperative 6.4 The benefits of BC model can banks may loose the opportunity if be explained as given below
To Government To Bank To BC To Customers • Reaching out to • Increase outreach. • Income to Agents / • Affordable access to unbanked volunteers. banking services population. • Increase customers practically at the base. • Opportunity to expand doorstep. • Inculcating existing business. • Loans and remittance saving/banking • Improving market facility. habits. share. • Ride on the brand name of the bank. • Surplus income saving • Reducing • Potential business. / safety. migration to • Respectable image in • Release from the • Low investment society. urban centres. outlets/ low clutches of local money lenders. • Speeding up transaction cost. • Customer base for its • Improvement in economic own activities other • Social responsibility. economic status. development. than banking • No need for more activities. • Availability of govt. benefits. staff and branch • Empowerment of network. • Improved financial women. literacy. december 2015 land bank journal 10 they are immune to changes. The the fittest. With changed mindset, success stories of their counterparts cooperative banks can make the should motivate them for adopting rural prosperity a reality as they also the changes for better survival, as belong to the rural areas. everyone understands the survival of
Annexure-1 VOICE OF PEOPLE …. “We all are leading a decent life, Husband Shri Subramanian. She is earning our livelihood only because the team leader now earning `15,000 of the assistance given by per month and her husband Thenhippalam Cooperative Rural `25,000. Bank” says Smt. Jalajaa member of Shri Haridasan is the best Soorya JLG in Devathiyal village. performing agent, earning `50,000 This 5 member JLG is a part of per month. He says, “though I Kairali SHG and is engaged in worked for 18 hours a day in a Super stitching of readymade garments, Market, in Saudi for 13 years, I could procuring cloth from Erode Tamil not save more money and after Nadu. They got a loan of `1.00 lakh returning back to the country, I was without security and promptly earning my livelihood by selling news repaying the loan. “Our husbands papers and pappads. I love to work also got employment in marketing as with people in field and hence, I well as cutting & designing in our joined the bank as agent in July tailoring units only because of JLG” 2011. Today I own a good house and says Smt. Sumitha another member a car. I am taking care of my family from the same JLG. including my aged mother very well”. “I was working part time in Sales His wife Smt. Sheeba who was Tax department getting a meagre helping him, has also become an salary and joined as collection agent agent earning `9,000 per month. in TCRB in 2007 for a salary of `3000 “Our bank not only takes care of per month. There were only 3 the customers but also make employees and no computers. My employees and agents working with husband who was a porter and had BC happy and prosperous. The fruits health issues saw my development in of cooperation should be shared by getting more income through salary all and we takes care of local and commission over years, got population as well. Every bank in our motivated and joined as Agent in the country should be updated with Bank in 2013. Today we are happy technology to retain good customers with two storied house, two wheeler and serve them with quick and and three children going to good quality services” says Shri P K schools” says Smt. Anitha and her Pradeep Menon, President of TCRB, december 2015 land bank journal 11 representing the voice of many. The charges exorbitant interest and President of Kadukattupara Milk sometime I had to undergo cooperative Society Shri. Imbich humiliation also. Today with dignity I iKoya says “our society was loss swipe the card for getting assistance making and almost closed. It was through Rural Mahila Credit card. revived in 2014 with the involvement We are grateful to the bank and of TCR bank, which deputed Smt. Green Earth club” Smt. Girija, a Vinitha who is the Secretary now.. tailor, when met in Komarappadi We are collecting about 300 litres of Customer Service point said “I feel at milk per day and people stand in home here, for meeting all my credit queue to purchase our fresh milk needs and I have just got a loan of from our outlets. We pay more to milk `25000 for repairing my house. As producers than any other society and my shop is close by I will make timely that too only to their bank account. repayment and I do have other The society is running profitably accounts like Pigmy deposit, SB today and now planning to expand account etc.” Shri. Abdulvahab, a for milk processing and bye p a i n t e r , w h e n m e t i n products. After seeing the progress, Chenakkalangadi Customer Service the local Panchayat is now extending point said “I came here as the grant assistance @ `3 per litre services are very fast, technology produced, through this Society. based, no need for waiting in Smt. V. Anua beneficiary of RMCC queueand above all I know all of them says with gratitude “Whenever there personally and it gives me confidence was delay in getting money from my in financial dealings” highlighting husband from abroad, I used to avail the feel good character of the loan from money lenders, who cooperatives.
Abbreviations BC Business Correspondent
BF Business facilitator
GEFC Green Earth Farmers Club
GSETI Green Earth Self Employment Training Institute
JLG Joint Liability Group
MSS Micro Savings Scheme
NBFC Non-Banking Financial Company
RRB Regional Rural Bank
TCRB Thenhipalam Cooperative Rural Bank Ltd
december 2015 land bank journal 12
THE HARYANA STATE COOPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK LTD. Sahakarita Bhawan, Bay No. 31-34, Sector - 2, Panchkula
The Haryana State Cooperative Agriculture and Rural Developmen t Bank Ltd., is the specialised institution in the State, which caters to the Long Term credit needs of the farmers for the upliftment of the economic position of the agriculturists and allied fields. The bank advances Long Term loans to the farmers for the following purposes :- Scale of finance and periodicity of Major Sectors Farm Sector
Sr.No. Name of the Scheme & Purpose Period Scale of finance 1. Minor Irrigation 9 Years `75,000 to `4,00,000 2. Land Development -do- 90% of the project cost 3. Farm Mechanisation 5-9 Years 85% of the cost of Machinery 4. Purchase of Agriculture Land 10 Years Upto `12.00 Lacs 5. Horticulture/Plantation 5-10 Years `25,000 to `3,55,000 per Hectare Medicinal & Aromatic Plants -do- 90% of the project cost 6. Animal Husbandary 5-7 Years 90% of the project cost 7. Construction of Rural Godowns Upto 9 Years 90% of the project cost
Non Farm Sector Sr.No. Name of the Scheme/Purpose Period Scale of finance 1. Rural Housing Upto 10 years Upto `6.00 lacs 2. Marriage Palaces Upto 10 years 90% of the project Cost 3. Community Halls Upto 10 years 90% of the project Cost 4. Village Cottage Industry Upto 10 years 90% of the project Cost 5. Public Transport Vehicles Upto 5 years 85% of the project Cost 6. Rural Educational Infrastructure Upto 10 years 90% of the project Cost 7. Other SSI units Upto 10 years 90% of the project Cost Rate of Interest The rate of interest to be charged from the ultimate borrowers has been reduced to 13.25% P.A. w.e.f. 01.04.2015 for all type of loans advanced by the DPCARDBs in the state of Haryana. Note:- For further details, kindly contact The Haryana State Coop. Agri. & Rural Dev. Bank Ltd., Panchkula or the District Coop. Agri and Rural Dev. Banks at District level and its branches at Tehsil & Sub-Tehsil level in the State. SATBIR SHARMA SUDHIR RAJPAL, IAS Managing Director Chairman Phone:0172-2587040 Fax:0172-2587069 december 2015 land bank journal 13 Feasibility analysis of areca nut + pepper mixed cropping system in Karnataka Praveen Kumbar1 S. S. Guledgudda2 R. B. Belli3 B. C. Rajur4
ABSTRACT The per hectare total initial cost incurred by organic orchard growers was 6,42,676.48 of which investment cost constituted 21.46% and maintenance constituted 78.54%. Similarly, the per hectare total establishment cost incurred by inorganic orchard growers was 7,02,508.36 of which investment cost constituted 20.84% and maintenance constituted 79.16%. The average per ha maintenance cost incurred by respondents in arecanut + pepper mixed cropping orchards under organic methods was 1, 27,135.05 during the bearing period. The labour, material and fixed costs accounted for 26.58, 32.83, and 36.75 %, respectively. While the cost was 1,45,031.52 under inorganic methods where labour, material and fixed cost accounted for about 29.77,34.90 and 35.33 %, respectively. The average per ha yield of arecanut and pepper from arecanut + pepper mixed cropping orchards under organic methods was 19.94 and 2.08 quintals, respectively and the net returns obtained were `4,93,460.71. Similarly the average yield arecanut and pepper from arecanut + pepper mixed cropping orchards under inorganic methods was 21.96 quintals per ha and 2.31 quintals per ha, and the net returns were `4,86,943.93. The investment appraisal analysis revealed that the payback period was found to be 7.80 years in organic orchards and 8.02 years in inorganic orchards. The net present value of investment for the orchards under organic and inorganic methods were `6,67,552.02 per ha and `5,59,219.08 per hectare respectively at 12.00%discount rate for arecanut + pepper mixed cropping orchards. The discounted benefit cost ratio were 1.74 in organic orchards and 1.56 in inorganic orchards and the internal rate of return was found to be 23% and 21%respectively. Key words: cropping system, organic agriculture, productivity, payback period, internal rate of return.
1. M.Sc. student, Dept. of Agricultural Economics, University of Agricultural Sciences, Dharwad – 580 005 2. Associate Director of Research, RARS, Bijapur, University of Agricultural Sciences, Dharwad – 580 005 3. Extension Leader, AEEC, Vijayapur 4. Research Scholar, Dept. of Agricultural Economics, University of Agricultural Sciences, Dharwad december 2015 land bank journal 14 INTRODUCTION concept as a system referring to crop Pepper (Piper nigrum L.) is one of combination. Organic agriculture the most important and earliest aims at reducing the cost of known spices in the world. It plays a production and helps the farmers to significant role in Indian economy. get reasonable returns (Suresh, Based on international trade, it is 2001). Organic agriculture is today's called “King of Spices” and “Black answer not only to sustained Gold”. The whole dried fruit of the productivity, but also to safe and plant is black pepper while white nutritious food, which is increasingly pepper is the dried seed after demanded by conscious consumers removing the fruit wall. About 90% of within and outside India. Organic the produce is traded in the form of products also promise better black pepper and the rest is used as a prospects for Market and Trade white pepper (Tamil Selvan, 2009). (Inder Pal Singh 2011). There is an Pepper is a native of Western Ghats ever growing export market for of India and is an important crop organic products and also the commercially grown in India. It is domestic market in India is mainly cultivated in India, emerging. Products that are certified Indonesia, Vietnam, Malaysia, and sold as ‘organic’ can fetch a Brazil, Thailand, Srilanka and in premium price compared with some other tropical countries. conventional products if there is Pepper is cultivated over an area of 2, proper marketing facility. Keeping all 46,000 ha in India with a production these aspects in view, the present of 69,000 tonnes. study has been undertaken to Arecanut or Betelnut or Supari is analyse the financial feasibility of one of the important commercial investment in arecanut + pepper crops of India. Though the mixed cropping orchards under production of arecanut is locations organic and inorganic methods. specific, its consumption is widespread among all sections of the METHODOLOGY population, cutting across caste, Organic farming is an emerging religion, age and gender in India. trend and practiced throughout the Arecanut is chewed in various forms U t t a r a K a n n a d a d i s t r i c t o f by both the poor and the rich alike. It Karnataka state. In cultivation forms the main ingredient of arecanut and pepper are used as thambula (pan) whose use in India mixed crops. Three predominantly dates back to pre-vedic times. arecanut and pepper growing taluks Today organic mixed cropping in the district were selected. Sirsi, research with a farmer’s perspective Yellapur and Siddapur were having occupies a pride of place in India’s highest area under arecanut and agricultural research agenda. pepper. Totally 12 villages at the rate Organic mixed cropping systems of four from each selected taluks having maximum arecanut + pepper december 2015 land bank journal 15
Table 1: Investment pattern in Arecanut + Pepper mixed cropping orchards under organic and inorganic methods (`/ha) Sl. Organic Inorganic Particulars No. Qty Value % Qty Value %
A Initial investment
I Material Cost
1 FYM (tonnes) 12.25 21,745.36 3.38 10.56 18,754.87 2.67
2 Red earth (tonne) 21.00 11,243.73 1.75 22.30 12,657.31 1.80
3 Planting materials 2010 16,087.12 2.50 2100 18,475.95 2.63
4 Sprayer 1.25 9,754.36 1.52 1.38 10,742.79 1.53
5 Others - 4,055.74 0.63 - 6,452.14 0.92
Total Material cost - 62,886.31 9.79 - 67,083.06 9.55
II Labour Cost
1 Cleaning 206.25 41,250.00 6.42 211.73 42,345.00 6.03
2 Nursery, pitting 108.78 21,755.00 3.39 112.26 22,451.36 3.20
3 FYM and red earth application 10.77 2,154.00 0.34 19.75 3,950.00 0.56
4 Planting 49.25 9,850.00 1.53 52.70 10,540.00 1.50
Total labour cost 375.05 75,009.00 11.67 396.43 79,286.36 11.29
Total Cost (I+II) 137,895.31 21.46 146,369.42 20.84
B Maintenance cost up to bearing period
1st year 105,301.46 16.38 112,785.43 16.05
2nd year 70,095.08 10.91 81,012.64 11.53
3rd year 103,350.44 16.08 106,879.72 15.21
4th year 72,003.83 11.20 80,928.00 11.52
5th year 72,808.04 11.33 82,231.56 11.71
6th year 81,222.32 12.64 92,301.59 13.14
Sub total (I+II+III+IV+V+VI) 504,781.17 78.54 556,138.94 79.16
Total Establishment Cost (A+B) 642,676.48 100.00 702,508.36 100.00
december 2015 land bank journal 16 mixed farming area under organic Yi = the net cash inflows in the and inorganic cultivation were year 'i' selected. From each selected village r = the rate of discount five farmers growing arecanut + i = Year of life period (1, 2, 3, n) pepper mixed farming under organic I = Initial investment method and another five farmers growing arecanut + pepper mixed Benefit-Cost Ratio farming under inorganic method The benefit cost ratio (BCR) was were selected. Thus, the total sample worked out by using following size was 120. formula. Financial analysis The techniques used for the financial analysis were: Pay Back Period (PBP), Net Present Value / worth (NPV or NPW), Benefit-Cost Internal rate of return Ratio (B: C Ratio) and Internal Rate of The rate at which the net present Return (IRR). value of project is equal to zero is internal rate of return (IRR) to the Pay Back Period project. The net cash inflows were Payback period represents the discounted to determine the present length of time required for the stream worth by the following interpolation of cash proceeds produced by the technique. investment to be equal to the original Lower Discount Difference between the IRR= + cash outlay i.e. the time required for rate Two discount rates the project to pay for itself. In the present study, payback period was calculated by following formula. Present worth of cash flows at lover discount rate Absolute difference between present worth of cash flows stream at the two discount rates Net Present Value The present value represents the RESULTS AND DISCUSSION discounted value of the net cash Establishment cost of arecanut + inflows to the project. In the present pepper mixed cropping orchard study, a discount factor of 12% was It is revealed from the Table 1 that used to discount the net cash inflows the initial investment was higher in representing the opportunity cost of c a s e o f i n o r g a n i c o r c h a r d s capital. It can be represented by (702,509.36 per hectare) than the organic orchards (642,676.48). The higher initial investment in case of inorganic orchards was due to higher Where, plant population, high valued december 2015 land bank journal december Table 2: Maintenance cost of Arecanut + Pepper mixed cropping orchards during gestation period under organic method (`/ha) Sl. No. Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year Total cost % I Variable cost 201 A Material Cost
5 1 Seedling for gap filling - 450.00 8,500.00 565.00 450.00 450.00 10,415.00 2.06 2 FYM - 9,250.00 18,250.00 9,250.00 9,250.00 12,500.00 58,500.00 11.59 3 Green manure & vermicompost 4,500.00 3,250.00 6,500.00 3,250.00 3,250.00 3,250.00 24,000.00 4.75 4 Bio-fertilizers 650.00 675.00 1,250.00 650.00 650.00 650.00 4,525.00 0.90 5 Bio-pesticides - 250.00 525.00 450.00 450.00 650.00 2,325.00 0.46 6 Fencing materials 28,423.00 - - - - - 28,423.00 5.63 7 Others 4,562.00 3,256.00 3,125.00 3,125.00 3,125.00 3,125.00 20,318.00 4.03 Total Material cost (A) 38,135.00 17,131.00 38,150.00 17,290.00 17,175.00 20,625.00 148,506.00 29.42 B Labour cost 1 Gap filling - 1,250.00 6,750.00 1,350.00 1,350.00 1,350.00 12,050.00 2.39
2 Training - - 875.00 1,500.36 2,542.00 2,654.00 7,571.36 1.50 17 3 FYM, green manure & vermicompost application - 5,650.00 7,800.00 5,650.00 5,650.00 5,650.00 30,400.00 6.02 4 Weeding and mulching 6,501.00 8,452.00 8,500.00 8,500.00 8,542.00 12,502.00 52,997.00 10.50 5 Bio-pesticide application 0.00 650.00 1450.00 750.00 750.00 750.00 4,350.00 0.86 6 Fencing 21,236.00 325.00 950.00 452.00 450.00 450.00 23,863.00 4.73 7 Watch and ward 3,376.50 2,925.00 3,750.00 2,925.00 2,703.00 2,703.00 18,382.50 3.64 8 Miscellaneous 6,235.00 6,502.00 5,452.00 6,235.00 6,235.00 6,504.00 37,163.00 7.36 Total labour cost (B) 37,348.50 25,754.00 35,527.00 27,362.36 28,222.00 32,563.00 186,776.86 37.00 land bankjournal C Interest on working capital @ 8% 6,038.68 3,430.80 5,894.16 3,572.19 3,631.76 4,255.04 26,822.63 5.31 Total variable cost (A+B+C) 81,522.18 46,315.80 79,571.16 48,224.55 49,028.76 57,443.04 362,105.49 71.74 II Fixed cost 1 Rental value of land 10,600.00 10,600.00 10,600.00 10,600.00 10,600.00 10,600.00 63,600.00 12.60 2 Land revenue 134.00 134.00 134.00 134.00 134.00 134.00 804.00 0.16 3 Depreciation 10,497.50 10,497.50 10,497.50 10,497.50 10,497.50 10,497.50 62,985.00 12.48 4 Interest on fixed capital @12% 2,547.78 2,547.78 2,547.78 2,547.78 2,547.78 2,547.78 15,286.68 3.03 Total fixed cost (II) 23,779.28 23,779.28 23,779.28 23,779.28 23,779.28 23,779.28 142,675.68 28.26 Total cost (I+II) 105,301.46 70,095.08 103,350.44 72,003.83 72,808.04 81,222.32 504,781.17 100.00 december Table 3: Maintenance cost of Arecanut + Pepper mixed cropping orchards during gestation period under inorganic method (`/ha) Sl. No. Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year Total cost %
201 I Variable cost A Material Cost
5 1 Seedling for gap filling - 575.00 9,250.00 750.00 750.00 750.00 12,075.00 2.17 2 FYM - 10,250.00 12,550.00 10,250.00 10,250.00 10,250.00 53,550.00 9.63 3 Fertilizers 5,250.00 6,500.00 7,500.00 3,150.00 2,845.63 5,200.00 30,445.63 5.47 4 PPC 1,800.00 1,225.00 2,252.00 1,225.00 1,225.00 1,850.00 9,577.00 1.72 5 Fencing materials 28,654.00 869.00 1,252.00 869.00 869.00 869.00 33,382.00 6.00 6 Others 5,360.00 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 31,610.00 5.68 Total Material cost (A) 41,064.00 24,669.00 38,054.00 21,494.00 21,189.63 24,169.00 170,639.63 30.68 B Labour cost 1 Gap filling - 1,755.00 8,250.00 1,250.00 1,250.00 2,450.00 14,955.00 2.69 2 Training - - 925.00 2,513.63 3,125.00 3,125.00 9,688.63 1.74 18 3 FYMs and Fertilizers application - 4,256.00 5,123.00 4,502.00 4,502.00 4,502.00 22,885.00 4.11 4 Weeding and mulching 7,500.00 9,504.00 9,564.00 9,252.00 9,252.00 13,496.73 58,568.73 10.53 5 PPC spraying 0.00 706.00 1250.00 1850.00 2750.00 3650.00 10,206.00 1.84 6 Fencing 22,345.25 1,725.00 1,725.00 1,725.00 1,725.00 1,725.00 30,970.25 5.57 7 Watch and ward 3,750.00 2,575.00 4,250.00 2,525.00 2,525.00 2,525.00 18,150.00 3.26 8 Miscellaneous 7,800.00 7,850.00 7,850.00 7,850.00 7,850.00 7,850.00 47,050.00 8.46 Total labour cost (B) 41,395.25 28,371.00 38,937.00 31,467.63 32,979.00 39,323.73 212,473.61 38.21 land bankjournal C Interest on working capital @ 8% 6,596.74 4,243.20 6,159.28 4,236.93 4,333.49 5,079.42 30,649.06 5.51 Total variable cost (A+B+C) 89,055.99 57,283.20 83,150.28 57,198.56 58,502.12 68,572.15 413,762.30 74.40 II Fixed cost 1 Rental value of land 10,600.00 10,600.00 10,600.00 10,600.00 10,600.00 10,600.00 63,600.00 11.44 2 Land revenue 134.00 134.00 134.00 134.00 134.00 134.00 804.00 0.14 3 Depreciation 10,453.00 10,453.00 10,453.00 10,453.00 10,453.00 10,453.00 62,718.00 11.28 4 Interest on fixed capital @ 12% 2,542.44 2,542.44 2,542.44 2,542.44 2,542.44 2,542.44 15,254.64 2.74 Total fixed cost (II) 23,729.44 23,729.44 23,729.44 23,729.44 23,729.44 23,729.44 142,376.64 25.60 Total cost (I+II) 112,785.43 81,012.64 106,879.72 80,928.00 82,231.56 92,301.59 556,138.94 100.00 19
Table 4: Maintenance cost of Arecanut + Pepper mixed cropping orchards during bearing period under organic and inorganic methods
(`/ha) Sl. Organic Inorganic Particulars No. Value % Value %
I Variable Cost A Material Cost 1 Seedling for gap filling 835.42 0.66 1,725.95 1.19 2 FYM 21,452.00 16.87 8,452.65 5.83 3 Red earth 9,521.00 7.49 12,531.00 8.64 4 Fertilizers - - 12,837.64 8.85 5 Bio-fertilizers & jeevamrut 2,350.00 1.85 - - 6 Green manure & vermi compost 1,750.00 1.38 - - 7 PPC / bio-pesticide 1,577.91 1.24 7,542.00 5.20 8 Miscellaneous 4,250.00 3.34 7,525.00 5.19 Total Material cost (A) 41,736.33 32.83 50,614.24 34.90 B Labour cost 1 Gap filling 1,425.00 1.12 1,768.27 1.22 2 Training 3,265.00 2.57 3,754.97 2.59 3 FYM and Fertilizers application 2,561.36 2.01 3,765.00 2.60 4 Weeding and mulching 10,365.00 8.15 13,752.00 9.48 5 PPC / bio-pesticide application 1,750.27 1.38 3,625.79 2.50 6 Watch and ward 3,150.00 2.48 3,250.00 2.24 7 Harvesting 6,375.15 5.01 7,564.25 5.22 8 Miscellaneous 4,521.30 3.56 5,697.00 3.93 Total Labour cost (B) 33,413.08 26.28 43,177.28 29.77 Interest on working capital @ 8% 5,260.46 4.14 6,565.41 4.53 Total Variable Cost (A+B) 80,409.87 63.25 93,791.52 64.67 II Fixed cost 1 Amortized establishment cost 32,133.82 25.28 35,125.42 24.22 2 Rental value of land 10,600.00 8.34 10,600.00 7.31 3 Land revenue 134.00 0.11 134.00 0.09 4 Depreciation 2,294.00 1.80 3,654.02 2.52 5 Interest on fixed capital 1,563.36 1.23 1,726.56 1.19 Total fixed cost (II) 46,725.18 36.75 51,240.00 35.33 Grand Total 127,135.05 100.00 145,031.52 100.00 december 2015 land bank journal 20 fertilizer, PPC application, as in case from seventh year onwards assumed of organic orchards no fertilizers, to be same in each year as mentioned PPC were applied instead of which in Table 4. In organic orchards, the the organic inputs (like FYM, green total annual maintenance cost of manures, vermi compost, bio- arecanut + pepper mixed cropping fertilizers, bio-pesticides) were used orchards under organic and (Thankamani, 2010). The higher inorganic methods was `127,135.05 initial investment on cleaning, and `145,031.52, respectively of pitting was due to presence of dense which labour component constituted forest and slope of land. It was also 26.28 and 29.77% respectively in observed from Table 2 and 3 that the that order. Of the total labour cost maintenance cost during gestation incurred per hectare, weeding and period both for organic and inorganic mulching and harvesting accounted orchards was decreased from 1st year around 50% in case of both the to 2nd year. This was due to more care methods of organic and inorganic. taken to establishment orchards This clearly shows that arecanut + during the initial investment period pepper mixed cropping orchards of establishment of arecanut + under organic and inorganic pepper mixed cropping orchards i.e., methods is a labour intensive gap filling, weeding and mulching, operation. fencing, application of PPC, watch It was found that the inorganic and ward etc. such operations were farmers employed marginally more carried out during initial period and labours for harvesting and weeding which gradually decreased in next and mulching. It was also observed years. The maintenance cost was that the organic farmers applied high in 3rd year, because pepper m o r e F Y M , b i o - f e r t i l i z e r s , planting will be taken up in this jeevamruta, green manure and vermi period as mixed crop in arecanut compost than that of inorganic orchard. Pepper needs standard for farmers. Moreover, the employment its growth and development. Here, of family labour was more in case of arecanut is used as live standard for organic than inorganic. It was the growth of pepper (Balachandra o b s e r v e d t h a t a m o r t i z e d K. Naik, 1987). establishment cost was more in case of inorganic than organic due to Maintenance cost of arecanut + higher establishment cost. The pepper mixed cropping orchards result of the present study under organic and inorganic corroborates with the findings of methods during bearing period Gangadhar (2012) who has reported The maintenance cost of arecanut that the per hectare maintenance + pepper mixed cropping orchards cost was higher on inorganic banana under organic and inorganic cultivation (`56,300) than inorganic methods during bearing period i.e., banana cultivation (`39,750). december 2015 land bank journal 21 Yield and return structure of of long-term investments in arecanut arecanut and pepper under + pepper mixed cropping orchards is organic and inorganic methods essential to evaluate whether the heavy investments made in the It was observed from the Table 5 initial period of the project would that in the study area the average yield sufficient returns to cover the yield of arecanut and pepper from cost and recover the investment in a arecanut + pepper mixed cropping reasonable time period. In this orchards obtained per hectare was regard, the use of discounted cash more in case of inorganic orchards flow techniques was found to be (arecanut – 21.96 qtls/ha, pepper – more appropriate (Malave, 2012). 2.31qtls/ha) than organic orchards Financial feasibility of investment in (arecanut – 19.94 qtls/ha, pepper – arecanut + pepper mixed cropping 2.08 qtls/ha). It might be due to orchards in the study area was higher fertilizer and PPC application a n a l y s e d u s i n g t h e p r o j e c t by inorganic orchard farmers. The evaluation technique such as Net gross returns realized per hectare in Present Value (NPV), Benefit-Cost case of organic orchard was found to Ratio (B:C ratio), Pay Back Period be higher than inorganic orchards. and Internal Rate of Return and This marginal difference in returns results are presented in Table 6. could be accounted to the higher price obtained for organic pepper by Net Present Value (NPV) selling to the organic agencies. It was The formal selection criterion of also found that the average annual NPV is to accept all the projects with maintenance cost per hectare positive values. In the study area, the incurred by organic farmers was NPV was found to be positive and lower. The lower cost coupled with higher in organic orchards higher returns realized by the (`667,552.02) than inorganic organic farmers resulted higher net o r c h a r d s ( ` 5 5 9 , 2 1 9 . 0 8 ) returns for organic orchards than counterparts. It could be concluded inorganic. The study by Ganesh that investment in arecanut + pepper (2010) in arecanut cultivation in mixed cropping orchards is North Karnataka also revealed that financially feasible and financially the per hectare net returns obtained sound. The higher magnitude of net by organic farm was corporately present value may be attributed more than that of inorganic farms. realization of continuous high F i n a n c i a l f e a s i b i l i t y o f returns during the economic life of investments in arecanut + pepper both organic and inorganic orchards. mixed cropping orchards under Investment in organic orchards was organic and inorganic methods found to be more feasible financially The analysis of financial feasibility as compared to inorganic orchards. december 2015 land bank journal december Table 5: Yield and returns structure of arecanut and pepper
Particulars Organic Inorganic Sl. No. 201 Yield Total Value Grand Total Yield Total Value (`) Grand Total Arecanut Pepper Arecanut Pepper Arecanut Pepper Arecanut Pepper 5 Arecanut + Arecanut + Period (Qtl/ha) (Qtl/ha) (`) (`) Pepper (`) (Qtl/ha) (Qtl/ha) (`) (`) Pepper (`)
1 7 16.50 0.77 305,250.00 45,900.00 351,150.00 18.36 0.85 339,660.00 29,750.00 369,410.00
2 8 16.85 0.95 311,725.00 56,700.00 368,425.00 18.95 1.05 350,575.00 36,750.00 387,325.00
3 9 18.92 1.23 350,020.00 73,800.00 423,820.00 20.75 1.25 383,875.00 43,750.00 427,625.00
4 10 19.36 1.49 358,160.00 89,100.00 447,260.00 21.93 1.65 405,705.00 57,750.00 463,455.00
5 11 21.45 1.58 396,825.00 94,500.00 491,325.00 22.45 1.75 415,325.00 61,250.00 476,575.00
6 12 21.05 1.62 389,425.00 97,200.00 486,625.00 22.36 2.20 413,660.00 77,000.00 490,660.00 22
7 13 21.54 2.25 398,490.00 135,000.00 533,490.00 22.75 2.50 420,875.00 87,500.00 508,375.00
8 14 20.14 2.85 372,590.00 171,000.00 543,590.00 23.45 2.75 433,825.00 96,250.00 530,075.00
9 15 21.65 2.95 400,525.00 177,120.00 577,645.00 24.15 3.28 446,775.00 114,800.00 561,575.00
10 16 22.75 3.11 420,875.00 186,300.00 607,175.00 23.29 3.45 430,865.00 120,750.00 551,615.00 land bankjournal 11 17 21.25 3.17 393,125.00 190,080.00 583,205.00 23.00 3.52 425,500.00 123,200.00 548,700.00
12 18 20.78 2.79 384,430.00 167,400.00 551,830.00 22.45 3.10 415,325.00 108,500.00 523,825.00
13 19 19.35 2.25 357,975.00 135,000.00 492,975.00 22.50 2.50 416,250.00 87,500.00 503,750.00
14 20 17.51 2.10 323,935.00 126,000.00 449,935.00 21.00 2.45 388,500.00 85,750.00 474,250.00
Total 279.10 29.09 5,163,350.00 1,745,100.00 6,908,450.00 307.39 32.30 5,686,715.00 1,130,500.00 6,817,215.00
A v e r a g e 19.94 2.08 368,810.71 124,650.00 493,460.71 21.96 2.31 406,193.93 80,750.00 486,943.93 23 Table 6: Financial feasibility of investment in arecanut + pepper mixed cropping orchards under organic and inorganic methods
Sl. No. Particulars Units Organic Inorganic
1 Net Present Value `/ha 667,552.02 559,219.08
2 Internal Rate of Return Per cent 23 21
3 B:C Ratio 1.74 1.56
4 Pay Back Period Years 7.80 8.02
Note: Discount rate @ 12 %
Internal Rate of Return (IRR) considered to be a profitable venture. The formal criterion of IRR is to Thus, it could be concluded that accept the projects with IRR value investment in arecanut + pepper more than the opportunity cost of mixed cropping orchard was found to capital. The IRR worked out for b e f i n a n c i a l l y f e a s i b l e a n d organic orchards was higher (23%) economically viable. Moreover, the as compared to inorganic orchards BCR of organic orchards was (21%) in the study area. Both the IRR relatively more attracting than the values were found to be higher than inorganic orchards counterparts. the opportunity cost of capital i.e., The study conducted by Ganesh the lending rate (12% at present rate (2010) was in conformity with the of interest) of commercial banks for result of the present study. long term loans, indicating a higher average earning power of money Pay Back Period (PBP) invested in arecanut + pepper mixed The PBP is the length of time orchards. Hence, investment in taken to recover the investment organic orchards is more feasible made in the project. The PBP in and sound as compared to inorganic establishing arecanut + pepper orchards (Rajesh Chauhan, 2005). mixed cropping orchards was found to be less in organic orchards (7.80 Benefit Cost Ratio (BCR) years) as compared to inorganic The decision in B: C ratio frame orchards (8.02 years). Thus, the work is to select the projects where period of recovery of investment the ratio is more than unity. The BCR would be within 8 years in at 12% discount rate was found to be consideration of long economic 1.74 and 1.56 for organic and period of 25 years during which the inorganic orchards, respectively in farmer would earn sufficient income the study area. Both these values from the arecanut + pepper mixed were above unity and the investment cropping orchards. The payback in both organic and inorganic period of organic orchards was found orchards in the study area to be more attractive as compared to
december 2015 land bank journal 24 the inorganic orchards. mixed cropping orchards under organic methods was 19.94 and 2.08 CONCLUSION quintals, respectively and the net The per hectare total initial cost r e t u r n s o b t a i n e d w e r e incurred by organic orchard growers `4,93.,460.71. Similarly the average wa s ` 6 ,4 2 ,6 7 6 .4 8 o f wh ic h yield arecanut and pepper from investment cost constituted 21.46% arecanut + pepper mixed cropping and maintenance constituted orchards under inorganic methods 78.54%. Similarly, the per hectare was 21.96 quintals per ha and 2.31 total establishment cost incurred by quintals per ha, and the net returns inorganic orchard growers was were `4,86,943.93. `7,02,508.36 of which investment The investment appraisal analysis cost constituted 20.84% and revealed that the payback period was maintenance constituted 79.16%. found to be 7.80 years in organic The average per ha maintenance cost orchards and 8.02 years in inorganic incurred by respondents in arecanut orchards. The net present value of + pepper mixed cropping orchards investment for the orchards under under organic methods was organic and inorganic methods were `1,27,135.05 during the bearing ` 6 , 6 7 , 5 5 2 . 0 2 p e r h a a n d period. The labour, material and ` 5 , 5 9 , 2 1 9 . 0 8 p e r h e c t a r e fixed costs accounted for 26.58, respectively at 12.00 % discount rate 32.83, and 36.75%, respectively. for arecanut + pepper mixed While the cost was `1,45,031.52 cropping orchards. The discounted under inorganic methods where benefit cost ratio were 1.74 in organic labour, material and fixed cost orchards and 1.56 in inorganic accounted for about 29.77, 34.90 orchards and the internal rate of and 35.33%, respectively. The return was found to be 23% and 21% average per ha yield of arecanut and respectively. pepper from arecanut + pepper
REFERENCES Balachandra K. Naik, 1987, An villages. M. Sc. (Agri.) Thesis, Univ. economics analysis of production and Agric. Sci., Dharwad (Karnataka, marketing of arecanut in Sirsi area of India). Uttara Kannada district of Karnataka Gangadhar Banerjee, 2012, State. M.Sc. (Agri.) Thesis, Univ. Agric. Economics of banana plantations Sci., Dharwad (Karnataka, India). under organic and inorganic farming Ganesh, 2010, An economic systems. http://nabard.org.in. analysis of organic farming in North Inder Pal Singh and Grover, D. K., Karnataka: A case study of organic 2011, Economic viability of organic december 2015 land bank journal 25 farming: An empirical experience of Suresh, H., 2001, Performance of wheat cultivation of Punjab. Agric. organic farming in Shimoga district of Econ. Res. Review, 24 (2): 275-281. Karnataka –An economic analysis. M. Rajesh Chauhan, Chauhan, N. S., Sc. (Agri.) Thesis, Univ. Agric. Sci., Negi, Y. S. and Sharma, L. R., 2005, Dharwad (Karnataka, India). Economic feasibility of Kalazeera T a m i l S e l v a n , M . , H o m e y cultivation in dry temperate regions of Cheriyan, and Manojkumar, K., Himachal Pradesh. Indian J. 2009, Pepper production prospects Arecanut, Spices and Medicinal 2009-10. Indian J. Arecanut, Spices Plants, 7 (2): 72-76. and Medicinal Plants, 11(4): 169-176. Malave, D. B. and Wadkar, S. S., T h a n k a m a n i , C . K . a n d 2012, Economic evaluation of Kandlannan, K., 2010, Intercropping investment in cashew orchard in in juvenile black pepper garden. Konkan region of Maharashtra. The Indian J. Arecanut, Spices and Cashew and Cocoa J., 1(3): 21-29. Medicinal Plants, 12 (3): 3-5.
LAND BANK JOURNAL (QUARTERLY PUBLICATION )
67
Tariff for Publishing Advertisements (For 4 issues)
i) Back Cover Page in 4 colours - `12,000/-
ii) Inside Cover Page in 4 colours - `10,000/-
iii) Inside Full Page (Black & White) - `5,000/-
SUBSCRIPTION RATE Price ` 15/- per copy For 4 quarterly issues- ` 60/- in a year december 2015 land bank journal 26
THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK LTD. Tippu Sultan Palace Road, Bangalore - 560 018. Telephone: 080-26702024, 26702074 Fax: 080-26705035 e-mail: [email protected]
RECIPIENT OF FIRST EVER INDIRA PRIYADARSHINI VRIKSHA MITRA AWARD PROUDLY ANNOUNCES JUST A FEW OF ITS RESPLENDENT ACHIEVEMENTS
!Advances (From inception to 31-12-2015) Over `4852.28 Crores !No. of loan cases sanctioned as on 31-12-2015 17.79 Lakhs !Share of Small & Marginal Farmers in Bank’s financial assistance. 54.33%
STRIKINGLY INNOVATIVE PROGRAMMES INTRODUCED BY THE BANK
! Non-Farming Rural Enterprises, Rural ! Rain Water Harvesting Structures Housing, S.R.T.O. ! Vermi Compost Units ! Sericulture, Integrated Horticulture / ! Bio-digester Floriculture, Medicinal Plant ! Farm Mechanisation ! Individual Dairy Development and Sheep / ! Goat rearing / Poultry / Piggery / Rabbit Combined Harvester Rearing / Fisheries and Fishing Boat ! JCB/Dozers ! Big and Small Lift Irrigation Schemes. ! Coffee curing, Drying yards (Paddy, Areca, ! Rural Godowns / Agri Clinic & Agri Business Coffee etc.) Centres ! Agricultural Implements ! Purchase of Agriculture Lands ! Short term crop loan ! Solar Lights / Solan Pumps ! Gold Loan, Salary Loans etc. ! Purchase of Two Wheelers
BANK ACCEPTS FIXED DEPOSITS 1. 91 days - 7.00% 2. 181 days - 8.00% 3. One year and upto two years - 9.50% 4. Two years and above - 9.75% 5. 0.50% of additional Interest to Senior Citizens 6. Bank advances Gold, Vehicle Loan, Salary, House Mortgage Loans etc. at an attractive rate of interest. STRENGTHEN THE FARMERS' BANK FOR DETAILS, PLEASE CONTACT US OR OUR BRANCH OFFICES OR ANY PRIMARY CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK LTD. IN THE STATE.
K. Shadakshari, MLA Mohammed Zafarulla Khan, K.C.S. H. Balashekar, KCS President Secretary Managing Director december 2015 land bank journal 27 Influence of phosphorus and mycorrhizae on root colonization And spore count at different stages of sugarcane crop
T. Usha Rani* D. Balaguravaiah* M. Bharata Laxmi*
ABSTRACT The field experiment was conducted at RARS, Anakapalle on the effect of different levels of phosphorus on yield and quality of sugarcane (two plant crops and one ratoon crop) in presence and absence of cane trash and mycorrhizae. The experiment was laid out in split plot design with four main levels and four sub levels. The main levels consists of control (M1), mycorrhizae alone (M2), cane trash and mycorrhizae (M3) and cane trash alone (M4). The four sub levels consists of 0,50,100 and 150 kg P2O5 ha-1. The fertilizers for the plant crop were 112 kg N, 75 kg P2O5 and 100 kg K2O ha-1 for plant crop and 224 kg N, 75 kg P2O5 and 100 kg K2O ha-1 for ratoon crop. Significantly higher colonization was made possible by inorganic P application at 50 kg P2O5 ha-1, which later showed a decrease with increase in inorganic P levels. With advancement in age, the root colonization increased upto grand growth stage. During all the years of study, significantly higher root colonization was observed with the application of cane trash and mycorrhizae (M3) in plant and in ratoon crop. The highest mycorrhizal spore count was observed with the application of 50 kg P2O5 ha-1. Further increase in phosphorus levels depressed the spore count of mycorrhizae. Significantly lowest mycorrhizal spore count was recorded with the control (M1). Significantly more spore count noticed in plant and ratoon crop at formative, grand growth and at maturity stages respectively with application of 50 kg P2O5 ha-1 along with cane trash plus mycorrhizae. Key words : Mycorrhizae, cane trash, plant and ratoon crop, root colonization, spore count.
INTRODUCTION million hectares with a production of Sugarcane is one of the important 338.168 million tonnes and produc- cash crops in India and plays pivotal tivity of 70 tonnes per hectare (2010- role in both agricultural and indus- 2011). Sugarcane is an exhaustive trial economy of the country. India crop and depletes soil nutrients the largest producer of sugar culti- heavily. India ranks second in the vating sugarcane in an area of 5.04 world contributing to 22 % of world’s
*Regional Agricultural Research Station, Anakappali. december 2015 land bank journal 28 production. Andhra Pradesh ranks the fraction of P contributing fifth in sugarcane crop area of the towards P uptake. It has been country with a share of 4.83% (0.22 observed that the colonization of M.ha) with an average production of plant roots with VAM improves the 20.30 Mt contributing to 5.83% of activity of enzyme phosphatase the total production of the country. (Dodd, 1987). Since the world Phosphorous is one of the essential resources of P are limited and they elements required in optimum can be depleted in a few decades, the amounts for the growth and develop- contribution of VAM to P fertilizer ment of the plants. About 98% soils management is of increasing inter- have inadequate supply of available est. phosphorous and likely to induce Vesicular arbuscular mycorrhizae d e f i c i e n c y o f t h i s m i n e r a l . (VAM) fungi commonly infect plant Application of 100 kg P2O5 ha-1 roots, including those of sugarcane, through SSP or DAP along with 112 forming beneficial symbiotic rela- kg nitrogen ha-1 was found optimum tionships (Kelly et al., 1997). The for sugarcane in sandy loam soils primary benefit to the plant of this (Devi et al., 2005). symbiosis is enhanced acquisition of The plants which are deficient in water, phosphorous and other P, show retarded growth and cause minerals. VAM fungal hyphae pro- dark green colouration due to vide a greater effective absorbtive enhancement of anthocyanin forma- root surface able to explore larger t i o n ( K h a n e t a l . , 2 0 0 9 ) . volumes of soil, thus overcoming Phosphorous is the important nutri- nutrient and water depletion zones ent for plant growth and root devel- (Clark and Zeto, 1996; Hetrick et al., opment in crops. Application of 1988). phosphorus increases the dry matter In low input agricultural systems, yield, internodal length and quality cultural practices such as organic parameters in sugarcane (Tilib et al ., amendments are known to enhance 2004). Earlier, sugarcane crop was Arbuscular mycorrhizae formulation not responding to P application in and fungal propagules (Darzi et al., A.P. With the advent of physiologi- 2007). These changes in crop growth cally active improved sugarcane and yield produced by various variety, P nutrition to sugarcane crop organic amendments are ascribed to played a vital role in yield and quality changes in the physical, chemical improvement. and biological properties of the soils. Application of phosphate fertilizer The response of crop growth and increased the average shoot dry yield to different organic amend- weight. The highest SDW was with ments may be related to changes in 40 kg P2O5 ha-1. However response population of VAM fungi, as in of sugarcane to P application is conventional high input farming varying, probably due to variation in systems. december 2015 land bank journal 29 It is well established that (i) early maturing variety 93 A 145. The improvements in plant growth are sets were selected from the short attributed to an enhanced access of crop. The seed rate per hectare was mycorrhizal root to soil P located 16,000 ha-1. beyond the rhizosphere (Sanders The main treatments consists of and Tinker, 1973) and (ii) infection control (M1), mycorrhizae alone by mycorrhizal fungi is significantly (M2), cane trash and mycorrhizae reduced at high soil phosphorus (M3) and cane trash alone (M4). The levels (Amijee et al., 1989; Koide and sub levels consists of 4 levels of Li, 1990). Although information on phosphorus i.e., 0,50,100 and 150 the acquisition of minerals by plants kg P2O5 ha-1. The fertilizers for the is available, information on the P is plant crop are 112 kg N, 75 kg P2O5 limited. Phosphorus is generally and 100 kg K2O ha-1 and 224 kg N, available in small quantities in soil 75 kg P2O5 and 100 kg K2O ha-1 for solution because most of inorganic ratoon crop. The phosphorus in the phosphate ions are bound to soil form of single super phosphate and colloids or fixed as iron aluminium potassium fertlisers in the form of PO4 (Larsen etal.,2007). muriate of potash were applied as Moreover, less than 15-25% of P per the treatments. The nitrogen was from PO4 fertilizer applied to soil is applied at 45 and 90 days after normally available to plants and a planting for plant crop and at stubble large quantity of P remains unavail- shaving and 45 days after planting able due to its fixation (Singh and for ratoon crop. The cane trash (pre Singh, 2007). Under such circum- decomposed) was applied @ 3t ha-1 stances VAM fungi can be effectively three days after planting. The utilized to enhance the P mobiliza- mycorrhizae was applied @12.5 kg tion. Sugarcane production requires ha-1 24 hours after application of high water availability at various chemical fertilizers. The EM1 culture growth stages. Since ground water was applied on the trash @ 1kg ton -1 table is getting reduced, new tech- after application of chemical fertiliz- nique should be incorporated to ers. Weeding and irrigation was done sustain sugarcane productivity and as and when required. Harvesting it includes use of VAM fungi as was done when the cane attains bioinoculant to tolerate drought maturity. The C/N ratio was esti- stress, use of genetically modified mated at 15 days interval by compar- sugarcane variety which requires ing the conventional method and less water for growth etc. decomposition by EM1 culture.
MATERIALS AND METHODS RESULTS AND DISCUSSIONS The experiment was laid out in Mycorrhizal root colonization (% split plot design with four main infection) and spore count 50 g soil-1 treatments and four sub levels with a Root colonization in percent root december 2015 land bank journal 30 infection was significantly influenced 31.6%) at formative, grand growth by inorganic P application at all the and maturity stages respectively as stages in all the three crops. against 16.0, 18.8 and 16.6 in plant Significantly higher colonization was and 13.2, 16.9 and 14.6 per cent in made possible by inorganic P appli- ratoon crop in the absence of both cation at 50 kg P2O5 ha-1, which cane trash and mycorrhizae. later showed a decrease with Cane trash and mycorrhizae with increase in inorganic P levels, the the inorganic P at 50 kg P2O5 ha-1 mean root colonization being 35.0, found to increase the root coloniza- 38.8 and 33.4 % in plant crop, while tion significantly at all stages of it was 31.2, 39.4 and 33.7% in ratoon growth in all the three crops. crop It was observed that with Significantly higher root coloniza- advancement in age, the root coloni- tion of 41.4, 49.6 and 41.3% in plant zation increased upto grand growth crop at formative, grand growth and stage due to higher root activity to maturity stages and 40.6 & 54.4% in supply carbonaceous substances to ratoon crop at formative and grand the growing VAM fungi. When the growth stage were observed. crop reached maturity stage again However, at maturity stage ratoon the root activity slowed down and crop, significantly higher root coloni- hence colonization decreased. At zation was facilitated by the applica- higher levels of P the mycorrhial tion of inorganic P at 50 kg P2O5 ha- colonization reduced due to reduced 1 in presence of mycorrhizae alone. root membrane permeability result- These results are in conformity with ing in decreased loss of metabolites the findings of Aparna and and plant rich in P are poor in carbo- Bhagyaraj., (2007) who stated that hydrate content which reduces AMF application of phosphorus @ 40 and c o l o n i z a t i o n ( M o h a n a n d 60kg P2O5 ha-1 along with Ponnusamy.,2011). mycorrhizae in medium P soils not Application of 50 kg P2O5 ha-1 only recorded high spore count and helped the crop to put forth extensive root colonization of mycorrhizae but root system thus increasing the also increased growth and yield of secretion that favour mycorrhizal the crop in addition to saving in 25% colonization. However, at higher of phosphorus fertilizer application. levels of inorganic P antagonistic Mycorrhizal spore count 50 g soil- effect will be exerted for the growth of 1 : The spore count in plant and mycorrhizae. ratoon crops was influenced by the During all the years of study, application of phosphorus levels. The significantly higher root colonization highest mycorrhizal spore count was was observed with the application of observed with the application of 50 cane trash and mycorrhizae (M3) in kg P2O5 ha-1 showing 51.5, 113.4 plant crop (31.2, 37.1 and 28.1%) and 90.9 per 50 g soil at formative, and in ratoon crop (29.9, 38.2 and grand growth and maturity stages of december 2015 land bank journal 31 and 45.6, 106.3 and 81.1 per 50 g mycorrhizal spore count was soil in ratoon crop at the respective recorded with the control (M1), in stages. Further increase in phospho- plant crop (29.6, 67.1 and 43.5 rus levels depressed the spore count number 50 g-1 soil) and in ratoon of mycorrhizae. The significantly crop (27.3, 66.4 and 49.1 no.50 g-1 lower spore count was observed with soil) at formative, grand growth and the application of 150 kg P2O5 ha-1 maturity stages respectively. in all the crops at all the stages, the Significantly more spore count of respective values at formative, grand 68.9, 145.7, 120.5 per 50 g-1 soil growth and maturity stage being noticed in plant crop and 57.6, 31.9, 80.9 and 63.1 per 50 g soil in 138.5, 105.7 per 50 g soil in ratoon plant crop and and 26.5, 76.8, 54.1 crop at formative, grand growth and per 50 g-1 soil in ratoon crop respec- at maturity stages respectively with tively. application of 50 kg P2O5 ha-1 along During both the years of study and with cane trash plus mycorrhizae. all at the three stages under study, The decrease in spore density with an more spore count was recorded in increase in soil avail¬able phospho- plant crop i.e., 50.8, 117.4 and 100.2 rus may due to the fact that, avail- per 50 g soil and 43.2, 114.5 and able soil phosphorus inhibits AM 86.8 per 50 g soil in ratoon crop with root colonization as well as their cane trash plus mycorrhizae (M3) at density (Anderson, 1992). The root formative, grand growth and at infection by mycorrhizal fungi was maturity stages when compared to significantly reduced at high soil mycorrhizae alone (M2), cane trash phosphorus levels (Amijee et al., alone (M4). Significantly lowest 1989; Koide and Li, 1990).
Root colonisation at P50 level. Root colonisation at P0 level.
december 2015 land bank journal 32
december 2015 land bank journal december Table 1 Effect of different levels of phosphorus in presence and absence of cane trash and mycorrhizae on the content of Phosphorus (%) in sheath at different stages of plant crop (Pooled data)
Treatments Formative stage Grand growth stage Maturity stage
201 P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean M1 13.7 21.5 16.8 11.8 16.0 19.4 23.2 18.4 14.1 18.8 16.2 21.3 15.5 13.4 16.6 5 M2 27.0 39.5 29.9 24.5 30.2 29.4 46.5 37.8 33.5 36.8 20.3 38.6 29.8 21.7 27.6 M3 30.8 41.4 29.3 23.2 31.2 30.1 49.6 38.9 29.7 37.1 22.7 41.3 28.5 19.7 28.1 M4 25.2 37.6 27.6 15.4 26.5 22.6 35.8 28.7 21.3 27.1 19.3 32.5 21.7 16.5 22.5 Mean 24.2 35.0 25.9 18.7 26.0 25.4 38.8 31.0 24.6 29.9 19.6 33.4 23.9 17.8 23.7 S.Ed CD CV % SED CD at CV % SED CD at 0.05 0.05 at 0.05 CV % M 0.31 0.62 7.8 0.59 1.41 5.8 0.05 0.12 4.8 0.31 P 0.28 0.56 0.44 0.88 0.05 0.10 0.28 P x M 0.62 1.12 1.14 2.36 0.02 0.22 0.62
M x P 0.56 1.05 6.6 0.98 1.18 4.7 0.02 0.22 3.8 0.56 33 Table 2. Effect of different levels of phosphorus in presence and absence of cane trash and mycorrhizae on the content of Phosphorus (%) in sheath at different stages of ratoon crop (Pooled data)
Treatments Formative stage Grand growth stage Maturity stage P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean M1 29.7 38.3 27.6 22.7 29.6 66.6 74.3 69.2 58.4 67.1 58.5 65.3 56.9 43.5 56.1 M2 35.6 52.5 42.4 37.4 42.0 97.4 130.4 111.5 93.5 108.2 89.4 99.2 85.1 76.3 87.5 land bankjournal M3 40.6 68.9 54.7 38.8 50.8 109.8 145.7 121.3 92.6 117.4 91.2 120.5 102.5 86.5 100.2 M4 31.5 46.4 38.6 28.5 36.3 75.2 93.4 66.5 60.3 73.8 65.8 78.8 58.2 45.8 62.2 Mean 34.4 51.5 40.8 31.9 39.7 88.7 113.4 95.9 80.9 94.8 76.2 90.9 75.7 63.1 76.5 S.Ed CD CV % SED CD CV % SED CD CV % at 0.05 at 0.05 at 0.05 M 1.47 3.60 7.4 0.43 0.89 8.9 0.59 1.44 6.7 1.47 P 1.41 2.90 0.38 0.68 0.59 1.22 1.41 P x M 2.85 6.16 1.12 2.34 1.18 2.55 2.85 M x P 2.81 5.80 6.8 1.10 2.20 7.6 1.18 2.43 5.8 2.81 december Table 3. Effect of different levels of phosphorus in presence and absence of cane trash and mycorrhizae on the content of Phosphorus (%) in leaf at different stages of plant crop (Pooled data)
Treatments Formative stage Grand growth stage Maturity stage
201 P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean M1 10.8 18.4 14.5 9.3 13.2 15.7 23.5 17.2 11.4 16.9 13.2 20.3 14.5 10.4 14.6 5 M2 23.1 35.6 20.4 14.7 23.5 27.6 41.3 27.6 26.8 30.8 27.7 41.3 30.5 18.7 29.6 M3 25.8 40.6 31.1 22.3 29.9 29.8 54.4 38.4 30.1 38.2 25.3 37.6 34.8 28.7 31.6 M4 20.6 31.7 24.56 15.1 23.0 25.2 38.4 30.4 23.6 29.4 23.3 35.5 25.7 16.5 25.2 Mean 20.1 31.2 22.6 15.4 22.4 24.6 39.4 28.4 23.0 28.8 22.4 33.7 26.4 18.6 25.3 S.Ed CD CV % SED CD at CV % SED CD CV % at 0.05 0.05 at 0.05 M 0.17 0.35 6.7 0.16 0.32 7.9 0.18 0.36 4.8 P 0.20 0.40 0.18 0.36 0.16 0.32 P x M 0.34 0.68 0.32 0.64 0.35 0.70
M x P 0.40 0.80 5.8 0.28 0.56 6.4 0.32 0.64 3.9 34 Table 4. Effect of different levels of phosphorus in presence and absence of cane trash and mycorrhizae on the content of phosphorus (%) in leaf at different stages of ratoon crop
Treatments Formative stage Grand growth stage Maturity stage P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean P0 P1 P2 P3 Mean M1 27.7 35.8 23.7 21.8 27.3 65.7 73.4 68.9 57.7 66.4 45.3 61.5 48.9 40.5 49.1 M2 33.1 47.8 39.56 27.9 37.1 89.4 120.3 105.5 91.3 101.6 78.4 87.5 76.4 65.5 77.0 land bankjournal M3 38.6 57.6 43.8 32.7 43.2 98.5 138.5 121.3 99.6 114.5 82.3 105.7 87.8 71.3 86.8 M4 28.9 41.2 35.6 23.5 32.3 65.9 93.2 60.5 58.7 69.6 55.7 69.5 43.9 40.3 52.4 Mean 32.1 45.6 35.7 26.5 35.0 79.9 106.3 89.1 76.8 88.0 65.4 81.1 64.3 54.1 66.3 S.Ed CD CV % SED CD at CV % SED CD CV % at 0.05 0.05 at 0.05 M 0.32 0.65 8.7 0.02 0.04 7.8 0.06 0.14 8.2 P 0.26 0.52 0.02 0.04 0.06 0.13 P x M 0.67 1.13 0.04 0.08 0.12 0.26 M x P 0.52 1.12 6.9 0.04 0.07 6.9 0.12 0.26 7.5 35 REFERENCE Amijee, F., Tinker, P.B and Stribley, D.P 1989. The development of endomycorrhizal root systems. VII: A detailed study of effects of soil phosphorus on colonization. New Phytol. 111: 435-446. Arpana, J and Bhagyaraj, D.J 2007. Response of kalmeg to an arbuscular mycorrhizal fungi and plant growth promoting rhizo micro organisms at two levels of phosphorus fertilizers. American-Eurasian J Agric.& Environ. Sci. 2 (1) : 33-38. Clark, R.B. and Zeto, S.K.1996. Mineral acquisition by mycorrhizal maize grown on acid and alkaline soil. Soil Biol Biochem. 28: 1495-1530. Darzi, M.T. Gupta, M.T, Prasad, M. Ram, S and Kumar, V. 2007. Study on effect of biofertilizer application on Quantification and Yield of Fennel in Order to reach to a Sustainable Agroecosystem, Ph.D. thesis, Tarbiyat Modarres and Nutrient Acquisition University, Iran, (In Farsi). Devi, T.C., Rao K.L., Swamy, K.R.L and Raju D.V.N. 2005. Effect of sources and levels of phosphorus with zinc on yield and quality of sugarcane. Thesis submitted to ANGRAU. Dodd, H.H., 1987. Maintenance of soil fertility in the sugarcane plantation. Proc. of S.A Sugar technologists Association 17 : 23-25. El-Tilib, M. A., Elnasikh, M. H., Elamin, E.A. 2004. Phosphorus and potassium fertilization effects on growth attributes and yield of two sugarcane varieties grown on three soil series. Journal of Plant Nutrition, 27 (4) : 663-699. Khan, A.G. 1974. The occurance of mycorrhiza in halophytes, hydrophytes and xerophytes and endogone spores in soils. J.Gen. microbial. 81:7-14. Kelly, R.M., Edwards, D.G., Magarey, R.C and Thompson, J.P. 1997. The effects of VAM on the growth and nutrition of sugarcane. Proc Aust. Soc. Sugarcane Technol. 19 : 73-79. Koide, R.T and Li, M. 1990. On host regulation of the vesicular-arbuscular mycorrhizal symbiosis. New Phytol. 114: 59-65. Larsen, J., Ravnskov, S. and Sorensen, J. N. 2007. Capturing the benefits of Arbuscular Mycorrhizal in Horticultural. In: Mycorrhizal in Crop Production, Hamel, C. Plenchette, (eds.), pp: 123 -149. Sanders, F.E. and Tinker, P.B. 1973. Phosphate flow into mycorrhizal roots. Pesticide Science. 4: 385-395. Singh, S.R., Singh, H.P. 2007. Occurrence of VAM in Uttaranchal and their effectiveness on colonization growth and NPK uptake on wheat. Environment and Ecology,. 25 (3) : 526-530.
december 2015 land bank journal 36 Biofertilizers: An eco-friendly fertilizer for agriculture
Pavithra, A.H1 Priya H.R2 Avinalappa H.H3 Nandini R.4
Introduction Rhizobium symbiosis was conducted Biofertilizers are the source of by N.V.Joshi and the first commer- microbial inoculants, which reveal cial production was started as early hope for many countries both eco- as 1956. nomically and environmentally. Disadvantages of Chemical Therefore, in developing countries Fertilizers and advantages of like India, biofertilizers can solve Biofertilizers problems of high cost of fertilizers During the last 30 years or so, and thus can save the economy of the there was a quantitative shift in country. Bio-fertilizers, in strict favour of using chemical fertilizers by sense, are not fertilizers which the farming community. Repeated directly give nutrition to crop plants. and extensive use of these chemical These are cultures of microorgan- fertilizers has deteriorated soil isms like bacteria, fungi, which quality, resulting in progressively packed in a carrier material. Thus, diminishing crop yield. Vast tracts of the critical input in Biofertilizers is agricultural land have turned barren the microorganisms. They help to and unproductive. The use of chemi- plants indirectly through better cal fertilizers and pesticides has Nitrogen (N) fixation or improving the caused tremendous harm to the nutrient availability in the soil. In environment. Three vital natural simple meaning, these are the sub- resources namely, soil, water and air stances which make use of microor- are liable to be affected by excessive ganisms to fertile the soil. use of chemical fertilizer. The disad- The commercial history of vantages of using chemical fertilizer biofertilizers began with the launch are as follows: of 'Nitragin' by Nobbe and Hiltner, a laboratory culture of Rhizobia in Water Pollution 1895 and followed by the discovery of The main problem associated with Azotobacter and then the blue green excessive use of fertilizers is the algae and a host of other micro- eutrophication of surface water. organisms. Azospirillium and Arable soils leak considerable Vesicular Arbuscular Mycorrhizae amount of nutrients which enrich (VAM) are fairly recent discoveries. In the water body resulting in more India the first study on legume growth of algae and other organisms 1,2,4 Research Scholars, University of Agricultural and Horticultural Sciences, Navule, Shivamogga, Karnataka 577216. 3Research Scholar, Bidhan Chandra Krishi Viswavidyalaya, Mohanpur, Nadia, West Bengal 741252 december 2015 land bank journal 37 and thus impair the quality of water using biofertilizer: They have high and limits its use. Application of nitrogen-fixing capabilities. They nitrogen fertilizers also results in can solubilize phosphates. They can increasing the concentration of also supply Vitamin Bl2, Auxin and nitrate in ground water. Two main Ascorbic acid. They involve less alleged health hazards are blue baby energy, low cost and less effort in diseases of young babies and cancer their production whereas chemical due to nitrate ingestion in food and fertilizers are expensive and involve water. higher energy in their production e.g., the Haber process of ammonia Damage to crops and soils synthesis requires temperature up to Evidences showed that excessive 800°F, a catalyst and high pres- use of fertilizers particularly nitro- sures, yet the same synthesis by gen, cause lodging of crops, low nitrogen and hydrogen is accompa- sugar content in sugar crops, acidi- nied by a nitrogen fixing microbes of fying action and increased incidence the soil at ordinary pressure and of weed and pest attacks. At the same temperature by the mediation of time heavy use of N fertilizers is also enzyme. Microbial processes are minimical to Rhizobium, the microbe quick. No pollution hazards by using responsible for symbiotic nitrogen biofertilizers whereas application of fixation. It has also been said that c h e m i c a l f e r t i l i z e r s c a u s e s the population of earthworms is pollution.They save non-renewable limited in nitrogen applied fields. form of energy. They can be stored for long duration .They need little space Heavy metal contamination for storage. They have less chance of There is an increasing concern getting damaged. about occurrence of trace elements in the environment in concentra- Types of Biofertilizers tions which can be harmful for (a) Nitrogen-fixing biofertilizers - animal health. Many fertilizers R h i z o b i u m , A z o t o b a c t e r , contain varying amounts of trace Azospirillium, Blue-green algae, elements such as F, As, Cd, Co, Cr, Azolla. Hg, Mo, Ni, Pb etc. Incidental addi- ( b ) P h o s p h o r u s m o b i l i s i n g tion of these elements may lead to biofertilizers: i) Phosphate their accumulation in soils and solubilizer Bacillus, Pseudomonas, ground water aquifers. The judicious Aspergillus nige. use of nature's own biofertilizers by ii) Phosphate absorber- VAM fungi - their biotechnological applications e.g., Glomus, Gigaspora appears to be a suitable answer to (c) Organic matter decomposer this problem. Biofertilizers can be biofertilizers used to overcome the problems of i ) C e l l u l o l y t i c - C e l l u l o m o n u s , chemical fertilizers. Trichoderma. There are several advantages in december 2015 land bank journal 38 ii) Lignolytic- Arthrobacter, Agaricus. maize, millet and sorghum, Azotobacter can fix up to 30 kg of Details of some important nitrogen from 1000 kg of organic biofertilizers are discussed below: matter and hence save 10-30 kg/ha Rhizobium spp: These are gram of N2. Similarly, Azospirillium led to negative soil bacteria. They form a saving of 15-25 kg equivalent of N2 symbiotic association with legumi- per hectare. nous plants to form nodules in the Blue-Green Algae (BGA): Dominant roots of host plant. These nodules nitrogen-fixer blue-green algae are are the sites of nitrogen fixation. Anabaena, Nostoc, Aulosira, Active nodules contain a red pigment Calothrix, Plectonema etc. Blue called leghaemoglobin. This green algae have the abilities of leghaemoglobin pigment regulates photosynthesis as well as biological the oxygen diffusion within the nitrogen fixation. Like in many other nodule. Intensities of nitrogen biological systems, nitrogen fixation fixation are directly proportional to in Cyanobacteria is brought about by the amount of haemoglobin present an enzyme known as nitrogenase in nodules. They fix atmospheric (Mishra & Pabbi, 2004). nitrogen and thus not only increase Azolla: Azolla is an aquatic fern the production of the inoculated occurring in ditches and stagnant crops, but also leave a fair amount of water. It harbours an algal nitrogen in the soil, which benefits endosymbiont Anabaena azollae the subsequent crops. Rhizobium w h i c h f i x e s a t m o s p h e r i c spp. are the best biofertilizers for nitrogen.The Azolla Anabaena legumes. Inoculums of Rhizobium symbiosis has attracted attention as can add 50-230 Kg N/ha. Although a biofertilizer worldwide, especially Rhizobium is abundant in soil, all of in South East Asia. It is widely used them are not able to nodulate all in rice cultivated areas and fish types of legumes. Because of their culture ponds. It can fix upto 900 kg specificity, for each legume, effective N/ha/year. inoculum is to be developed for each Vesicular-Arbuscular Mycorrhiza crop. (VAM) fungi: The roots of most plant Azotobacter and Azospirillum species form symbiotic association (Asymbiotic nitrogen fixers): They with specialized fungi (e.g., Glomus, are bacteria which reduce nitrogen to Gigaspora etc.) called mycorrhiza. ammonia in soil which is acceptable Vesicular Arbuscular Mycorrhiza by plants. They are also helpful in (VAM) is the most abundant kind of synthesizing phytohormones and mycorrhizal described as 'a universal vitamins by plants. In the presence of plant symbiosis'. Studies on VAM these bacteria, plants become less fungi conducted during last few susceptible to some fungal diseases. decades envisaged their occurrence They are widely used for cereals like in a wide variety of hosts, different december 2015 land bank journal 39 habitats and variability in quality rial in which the culture is and quantity. packed and the quality of the Critical factors responsible for packing material, which deter- the effectiveness of biofertilizers mine the shelf life. The critical factors which are > The conditions in which the responsible for the effectiveness of a packed materials are stored, particular biofertilizer are distributed and kept with the > Suitability of the species to the farmers before it is applied. target crop. > Soil conditions particularly pH, > Suitability of the strain: There organic matter content, mois- are specific strains of Rhizobium ture level and agronomic prac- for different leguminous species tices. like Cowpea, Red gram, Method and Area of Application of Soybean, Alfalfa etc. Biofertilizer Biofertilizers of specific culture should be Different methods are available used for specific crop. f o r a p p l i c a t i o n s o f v a r i o u s > Identification of strains as suited biofertilizers which are outlined to the agro-eco system, particu- below. larly the soil pH and moisture >As seed inoculant - e.g., conditions. Through research, Rhizobium. Seed treatment is a specific strains as suited to a most common method adopted particular soil and environmen- for all types of inoculant. The seed tal conditions are usually identi- treatment is effective and eco- fied and pure mother cultures nomic. are maintained in research labs >As soil inoculant - e.g., carrier for supply to the commercial b a s e d b l u e - g r e e n a l g a e , manufacturers. Azotobacter. > The aseptic conditions of manu- >As seed & soil inoculant - VAM facturing, the cell count of living fungi. Carrier materials for BGA organism present in the carrier inoculum are straw, rice bran, material, purity and level of polyurethane foam and sugar- contamination. cane waste. > The conditions of carrier mate-
Biofertilizers can be applied for variety of crops such as:
Biofertilizer Beneficiary Crops
Rhizobium Crop specific biofertilizers for legume like Groundnut, Soybean, Redgram, Green-gram, Black- gram, Lentil, Cowpea, Bengal-gram and Fodder legumes
Azotobacter Cotton, Vegetables, Mulberry, Plantation Crop, Rice, Wheat, Barley, Ragi, Jowar, Mustard, Safflower, Niger, Sunflower, Tobacco, Fruit , Spices, Condiment, Ornamental Flower december 2015 land bank journal 40
Biofertilizer Beneficiary Crops
Azospirillum Sugarcane, Vegetables, Maize, Pearl millet, Rice, Wheat, Fodders, Oil seeds, Fruit and Flower
Blue Green Algae Rice, banana
Azolla Rice
Phosphate Solubilizing Microorganisms(PSM) All Crops (non specific)
VAM fungi for variety of plant
S i m p l e S t e p s t o p r e p a r e Step 5 (Day 31) -Place the dried Biofertilizers in Five Months sample from Step 4 into a net bag Step 1 (Day 1) – once a layer of white hypha has Required ingredients: formed on the top of it. 1 kg of bamboo leaves Step 6 (Day 31) - 5 kg of husk Making the liquid micro-organisms: 2 kg of bran 1 kg of undisturbed Prepare 75 L of soil collected from 5 clean water in a 100 L barrel. cm under the surface near a tree Add 15 kg of brown Step 2 (Day 1)- Mix the ingredients sugar or 15 L of on the ground for approximately 30 molasses. minutes or until the Add 0.5 kg net bag from Step 5. mixture is consistent. Stir in one direction for around 10 A d d w a t e r w h i l e minutes, or until evenly mixed. mixing to moisten the Step 7 (Day 31-61) - Seal the barrel blend. tightly and leave it alone. This allows the Step 3 (Day 1) - Move the mixture mixture to ferment into a shallow bucket with a 50 cm and form a liquid diameter. Distribute the mixture in c a l l e d m i c r o - the bucket and create a depression in organisms. After 30 the center to promote heat ventila- days, a white layer tion. will form. Step 4 (Day 1-31) -Cover the bucket Step 8 (Day 61) - Prepare the follow- and move it to a shady area to create ing ingredients to make biofertilizers: a dried sample. Mix on every 4 days 1 part micro-organism that was for a period of 30 days to maintain prepared in Step 7. consistency. 1 part sugar or molasses. december 2015 land bank journal 41 10 parts water. Contamination in broth mixing and 100 L barrel that is 1/3 full of packing stages, not using completely chopped leftover vegetables, herbs or closed system of production. fruits. Unsatisfactory packing material Step 9 (Day 61-76) - Make the w h i c h r e d u c e s s h e l f l i f e . biofertilizers: Unsatisfactory storing conditions, Mix the water, sugar or molasses, particularly during the distribution and micro-organism together. period. Exposure to high tempera- tures and sunlight destroy the Add the chopped vegetables and microbial culture. They should be continue to stir. preferably kept in cold storage Tightly seal the barrel and let it sit conditions. Not employing properly for approximately 15 days. trained microbiologist. Lack of Step 10 (Day 76) - Dilute 30ml with quality controls and certification 20L of water. Spray the biofertilizers procedures. on the root of the plants to enhance Conclusions their growth. Despite having certain limitations, Limitations and Constraints Biofertilizers are potential alternative Narrow genetic base of mother to chemical fertilizers for improve- cultures and lack of efficient and ment of soil fertility for sustainable virulent strains suitable to various crop productivity and revegetating agro-environments. Unsatisfactory the mine spoils in cost effective and carrier material with uniform and eco-friendly manner. consistent good quality comparable t o i m p o r t e d p e a t m a t e r i a l .
december 2015 land bank journal 42
THE GUJARAT STATE COOP. AGRICULTURE AND RURAL DEVELOPMENT BANK LTD. 489, ASHRAM ROAD, AHMEDABAD 380 009 Email: [email protected] www.khetibank.org KHETI BANK P h o ne: (079) 26585365-70-71 Fax: (079) 26581282 / 8269
The Bank was established in 1951 to extend long term and medium term loans to farmers for agriculture and allied agricultural activities through 176 branches and 17 district offices located at each taluka places and district places respectively in the State of Gujarat.
THE BANK FINANCES FOR : Farm Mechanisation: Tractor, Thresher set and other implements etc. Horticulture / Plantation: Mango, Chickoo Plantation Chickoo Plantation, Green House etc. Animal Husbandry : Dairy development, Cattle rearing, Cattle sheds, Bullock cart, Sheep & Goat rearing, Poultry, Sericulture, Fisheries etc. Land Development : Land levelling, Land reclamation etc. Non Farm Sector: Small scale industries, Cottage industries including service sector, Rural housing, SRTOs, Rural godowns, APMCs, Cold storage, Consumer loan, Gold Loan etc. Minor Irrigation: Construction/repairs of irrigation well, Shallow tube well, Deep tube well, Installation of pumpsets, Pipelines, Lift irrigation, Drip irrigation, Check dams, Sprinkler irrigation, Solar Pumps etc. Kissan Credit Card: KCC for Purchase of Fertilizers, pesticides, equipments and maintenance, and payment of electricity bills etc. It is a medium term credit requirement of its borrowers who are regular in their repayment obligation to the Bank. Rural Housing: Construction of new houses, repairing and renovation of old houses. Financial Details of the Bank (` in Crores) Sr. No. Details 31.03.2013 31.03.2014 1 Owned Funds 511.94 542.90 2 Loans Disbursed 190.09 177.50 3 Fixed Deposit Outstanding 205.59 215.06 4 Profit 37.52 23.50 5 Dividend 12% 12%
Bank accepts Fix Deposit at following rate of interest. 1 year and above 8% p.a. Double 108 months 0.25% additional interest for senior citizens, Bank's employees and Share Holders Double 105 months Bank accepts Thrift Deposit at 5% Salient Features 1. Interest payable: Quarterly/half yearly and secured by registered mortgage of land and as yearly as per demand such FDs mobilized by the Bank are fully 2. Monthly Income Scheme is available secured. 3. TDS is not deducted on maturity of FDs 6. Loan against FD to the extent of 75% of FD is 4. FD outstanding as on 31.3.14 is within the own available. fund limit. 7. Thrift Deposit Scheme, 3 months and 6 months 5. All the loans issued by the Bank are Fixed Deposit Scheme is introduced from theoretically recoverable since they are November 2011. DIVIDEND ON SHARE IS REGULARLY PAID TO SHARE HOLDERS. FOR FURTHER DETAILS, PLEASE CONTACT US OR THE BRANCHES OF OUR BANK IN THE STATE.
Shri Dhirenbhai B. Chaudhari Shri Dolarbhai V. Kotecha Shri D. B. Trivedi Chairman Vice Chairman Managing Director december 2015 land bank journal 43 Social inclusion for rediscovery to new social order
Brij Pal
The cooperatives have to evolve a The Social Inclusion is an instru- social culture to grow, survive and ment of social transformation to a prosper. Social inclusion means new socio-economic meliu whose cause to effect these change- values may be pledged to socio- conservative social ideology of economic democracy. The social individual. The social inclusion by inclusion is indispensable to the cooperative societies at lowest rung promotion of socio-economic institu- of ladders would introduce the tions like cooperative. The social values of generosity, love, benevo- inclusion can be defined as formal lence and compassion in people. relation of an institution with a man. Socio-economic structure of Israil is The ultimate objective of this relation built on formation of these values. is to change the perception, behav- Individual ownership of resources in iour and attitude to suit the require- economic system has developed ment of contemporary socio- adverse social ethos. economic needs. Individual are The non-professional and political brought up, live and survive under bodies like Panchayat, implement different micro-environment, so the National Rural Employment and their perception, behaviour and Guarantee Scheme at grass-root attitudes are bound to differ from level were not meant for arrangement each other, unsuitable to collective of activities to workers. The produc- efforts as a member of a group or tion relation denounce the dignity of community. Individual gains, indi- human being. The labour contract vidual losses, greed, to love to store and construction cooperative with money, resources, and power to an infra-structure and professional recur a prosperous life for their own acumenship are overshooted by the generation alone to come, are the law. The cooperative sector of the factors making the human civilisa- economy is in a course of rediscovery tion more complex-than ever before. of their identity to introduce new The objective of institutions which social values. The mobility of labour are fashioned to promote the socio- do not keep pace with rising technol- economic democracy shall serve the ogy. The cooperatives are the force to purpose of new orientation, suiting introduce those values in gradual to the requirement of prosperity manner. The exploitation of natural without poverty. So the cooperative resources with capital intensity, shall embrace the people under the using the advanced technology social inclusion. 6000 big and small reduced the employment opportuni- cities of the economy provides 38% of ties and access of income to people. employment out of total available december 2015 land bank journal 44 employment of the economy. the stock taking of human resources Decentralisation of employment to formulate the strategies, for their opportunities is the concept of Rural value addition, investment of demo- Development. The cooperatives have cratic values in the member of these the nature of micro social and eco- informal groups and the classifica- nomic business units are suited to tion in consonance with the provide decentralised economy. In resources and occupational pattern addition to a new social change, the with the arrangement of activities for social inclusion would introduced them. Social inclusion opens up a to:- new social vista and provides:- 1. Impure the organisational 1. To decide the appropriate busi- effectiveness to control the crop ness mix to a cooperative society fluctuation in terms of acreage in agrarian economy, the con- and balance the production- sumer business, agricultural mix. inputs including insecticide and 2. Improve the equity participation pesticide, cattle drugs etc. to enhance risk ability, solvency 2. To enable to determine the and a sound financial structure. economic scene of the society 3. Create a managerial grid for and capital adequacy. higher values and deeper change 3. To enable the forecasting of of perception. demands and rotation of stock. 4. Socialise the individual gains 4. To determine viability norms and losses to overt the socio- under the specific conditions of economic melieu of inclusive the local scenario. growth and equitable distribu- 5. To educate the members in tion to change, re-establish, and matters of input, technology and redefine the concept of social economic viability. justice and social utility. The agriculture credit cooperative 5. Promote organised sector in societies have hitherto been func- rural economy through coopera- tioning as a tool of dispensation of tive republic for value additions credit for crop loan without any to make agriculture occupation recourse to strategies for improve- gainful. ment of the community of farmers. 6. Provide an infrastructure, The cooperatives have to change the mobilise deposits and generate perception of their members. domestic investment to bring up Cooperatives are the primary stake- the self-generating economy. holder in the welfare of the people. Social inclusion by grass root The concept of the cooperative needs cooperatives is a paradigm of a to be rediscovered and the objectives decentralise economy to 6 lacs have also to be rediscovered. The villages. The cooperatives are the concept of democratic control means tools of Rural Development. Hence to perform with discipline, the given december 2015 land bank journal 45 objective under the control of elected incorporated body for embodiment leaders. The government shall for dispensation of social justice. The enable the credit cooperatives to leadership of cooperatives is over avail the services of soil conservator, laden with political echelons. Love agronomist, plant protection and for private sector of political family planning either as nominal echolons has deprived these primary member or nomination of these institution from their legitimate functionaries on the Board of the share of subsidies to meet out mana- society. Moreover, this is constitu- gerial and working losses. Our own tional obligation of the government. empirical study reveals that all The cooperatives shall function as primary credit cooperatives need one an agent of change and resource lakh crores managerial subsidy and centre for rural development. two lacs crores subsidy to meet out The agriculture credit coopera- interest margin due on dispensed tives have acute dearth of equity with or waved on crop loans which base with impaired capital structure became bad debts. of agriculture credit societies. 60% of The loans were waved by respec- credit cooperatives eroded their tive state government and credit equity capital. The local traders and cooperatives did not get the accrued merchants get the advantage of low interest. The social inclusion would expenses on establishment under be of a different paradigm than those the accounting head of wages and efforts of universal membership salaries over the cooperative credit campaign buried into the papers of societies who all had to pay the history of cooperative movement. wages and salaries under the obliga- The paradigms of social inclusion tion of law. These societies suffer would carry the following elements:- from non-repayment of loans and 1. To diversify the occupational advances. More than 50% loans and pattern to meet out equity advances sunk into bad debts. In erosion. fact only 5 to 6% farmers get market- 2. To dispense with the procedure able surplus. Thus the 4 to 6% of down payment of loans in farmers get advantage of MSP. terms of allotment of shares These Credit Societies are subject to adjustment at the expected to function as recourse time of final instalment of loan. centre to bring a social change 3. To make a paradigm shift in suiting to the requirements for leadership by the empowerment achievement of latest available of common people. This will science and technology, owning the purify the cooperative credit collective liability for individual societies. These forces of change loans and advances, provide a can lead to a new social order. gainful occupational-mix for individ- 4. To provide a decentralise econ- ual member, and to function as omy for cooperative republic. december 2015 land bank journal 46 The lack of investment has cre- credit. So social inclusion for such ated death of capital. The govern- improvement is necessary. ment and private sector are not The human endeavour has not willing to make further investment. been able to evolve a new concept, The specific body viz. National philosophy and synergy of coopera- Agriculture and Rural Development tives to face the social reality. Bank do not invest more than 28% of Cooperatives are the association of their total lending's. people with a different method of The credit structure would production, rendering services and harden their capacity to evolve and to avert the concentration of eco- diversify the occupational pattern, nomic power. Simultaneously there influence the people to undertake is a need to provide an investment of cooperative farming to make the economic decentralisation, utilisa- economic size of holdings and work tion of material and immaterial with joint initiative and common resources with joint initiative of pool of resources. The loans and people in accordance with the princi- advances to one of the members ple of social justice. World economy would be guaranteed by remaining has to face the deters of 10 billion members of the society. The prosper- population in year 2050 to come. ity without poverty must form the There is a quest of a section of people soul of our economic development. to redefine and rediscover a new The cooperatives and the public concept, philosophy and synergy sector possess the necessary impe- beyond the year 2050. So a new tus to control the market. This is civilisation may grow up to peace, another factor of social inclusion by security and prosperity. cooperatives. There are number of The future destiny of our economy agricultural produce where price are would be either decided by commu- influenced by international market nity of corporate kings or the cooper- such as cotton. However cooperative atives would be accorded a future to credit societies functioning in para- grow a decentralised economy for dise areas of cotton growing suffer prosperity. To rediscover the identity from poor financial structure for of cooperative philosophy for rapid want of default, these societies could economic growth with social justice not develop human resources for is long overdue. spinning and weaving with small technology for easy recovery of their
december 2015 land bank journal 47 NEWS & NOTES
Nabard launched initiative to digitise SHGs Nabard has launched a project — close of this fiscal. “After the first “Eshakti” — for digitisation of all round of pilot, we will be able to sort SHGs (Self Help Groups) in the out the technical issues,” the Nabard country. The bank has, in the pilot DMD said. According to him, there phase, taken up two districts – Dhule are around 74 lakh SHGs in the in Maharashtra and Ramgarh in country. “Though SHGs per se Jharkhand for digitisation of SHG appear to be organised, they are data. R Amalorpavanathan, Deputy largely unorganised when it comes to Managing Director, Nabard, said the specifics. There are issues of project, which was initiated in April, multiple financing, inadequacies in 2015 is nearing completion. “We will account keeping and so on.” To have collated the data of around tackle such issues, Eshakti has been 6,000 groups in these two districts mooted in sync with Prime Minister’s alone. The database has been Digital India Initiative, he said, and created; individual data linking their explained that volunteers trained by Aadhar and mobile number have the Application Service Providers been mapped. Banks are being given (ASPs) capture the data of the SHG viewing rights of the activities of each and its members and upload the of the groups. This will help banks to same in a web-based server. Nabard view the group activities and has given a tablet PC for the sanction loans from the comfort of volunteer group. It is loaded with the branch itself,” he said. cloud-based apps, delivered front- Nabard is now planning to end in regional languages. Nabard escalate the pilot phase to cover 10 has estimated the investment for districts (one each in Tamil Nadu, extension of this exercise at `1,200 Karnataka, Gujarat, Orissa, Madhya crore. Pradesh, Haryana, Assam) before the Cabinet extends recapitalisation of Regional Rural Banks The Union Cabinet has extended stipulated for RRBs stood at 9% and the validity of the recapitalisation several of these banks are unable to scheme for weak regional rural maintain this level. With a view to banks (RRBs) by three years. The bringing the CRAR to at least 9%, the scheme, which was earlier valid up to KC Chakrabarty Committee has March 31, 2014, has been extended recommended recapitalisation up to 2016-17 to help RRBs improve support to the extent of `2,200 crore their capital-to-risk-weighted assets to 40 RRBs across 21 States. ratio (CRAR). The minimum CRAR The recapitalisation process had december 2015 land bank journal 48 started in 2010-11. The share of the released as on March 31, 2014, to 39 Centre in respect of some RRBs RRBs, including Central Madhya could not be released in the absence Pradesh Gramin Bank. The Centre is of the release of the share of State now widely expected to go in for Governments. Therefore, the scheme Supplementary Demand for Grants was extended to March 31, 2014. A to provide further funds to the RRBs total of `1,087 crore had been that require capital support. RBI allows banks to recast crop loans The RBI has decided to allow State RBI said banks may now permit a Level Bankers’ Committees/District maximum period of repayment of up Level Consultative Committees / to two years (including the banks to take a view on rescheduling moratorium period of one year) if the of loans if the crop loss is 33% or loss is between 33% and 50%. If the more. This move follows the crop loss is 50% or more, the period government reducing the criteria for for repayment may be extended to a crop loss from 50% to 33% for maximum of five years (including the p r o v i d i n g i n p u t s u b s i d y moratorium of one year). (compensation) to the farmers. The RBI asks government to amend co-operative bank laws In a move to bring urban co- applicable to these entities. “Today, o p e r a t i v e b a n k s i n t o t h e the Companies Act allows an entity mainstream, the Reserve Bank of to become a bank but that provision India (RBI) has recommended the is not there in the laws that govern government amend the laws to allow co-op banks. We have recommended grant of a commercial bank licence to to the government to accordingly these entities. RBI had set up a amend the laws," Gandhi said. He committee chaired by one of its added that UCBs were now deputy governors, R Gandhi, on the functioning well and the sector as a urban cooperative bank (UCB) whole had stabilised. "UCBs have system. The panel has suggested the gone through various ups and law be so amended as to allow these downs. The latest problem they had to exit from the ambit of the Multi was in early 2000. We had to tighten State Co-operative Societies Act and the regulations and supervision. come under the Companies Act. All Now, they have reached a good new banks in the private sector are position. Gross non-performing governed by the latter law. assets are around 5% (of the total) A t p r e s e n t , t h e B a n k i n g and net NPAs are 3%," he said. Regulation Act that governs These asset quality ratios are commercial banks does not apply almost in line with the overall fully on cooperative banks. As a b a n k i n g s y s t e m n u m b e r s . result, all RBI norms are not Provisioning coverage ratio of UCBs december 2015 land bank journal 49 improved significantly to 59.7% as of universal bank licences — and has March’15 from 52.4% in end- invited applicants in the payments September 2014. "The number of bank and small finance bank negative net worth banks are segment. One issue that had been a constantly coming down," Gandhi hurdle for UCBs to become added. According to latest RBI data, commercial banks was their the capital adequacy ratio of UCBs at governance practices. "They still March-end 2015 was 12.6%, as have some issues. This is being compared to the regulatory accepted by bringing in the concept requirement of 9%. Only five such of a board for management, as was banks have a CRAR below 9%. The recommended by the YH Malegam move to grant commercial banking committee. We have also insisted for licences to UCBs comes as the professional directors on the board," central bank has decided to issue Gandhi said. niche bank licences — as opposed to
RBI clears the way for 10 Small Finance Banks Taking the financial inclusion acceptance of deposits and lending to agenda forward, the Reserve Bank of unserved and underserved sections India (RBI) granted ‘in principle’ including small business units, approval to 10 companies to set up small and marginal farmers, micro small finance banks aimed at giving a n d s m a l l i n d u s t r i e s a n d loans to farmers and small unorganised sector entities. There businesses. The selected applicants won’t be any restrictions in the area are: Au Financiers (Jaipur), Capital of operations of small finance banks. Local Area Bank (Jalandhar), Disha The minimum paid-up equity capital Microfin (Ahmedabad), Equitas for small finance banks shall be `100 H o l d i n g s ( C h e n n a i ) , E S A F crore. The promoter’s minimum Microfinance and Investments initial contribution to the paid-up (Chennai), Janalakshmi Financial equity capital of such a small finance Services (Bengaluru), RGVN (North- bank should at least be 40% and east) Microfinance (Guwahati), gradually brought down to 26% Suryoday Micro Finance (Navi within 12 years from the date of Mumbai), Ujjivan Financial Services commencement of business of the (Bengaluru) and Utkarsh Micro bank. Finance (Varanasi). The “in-principle” approval The RBI considered existing granted to the ten small banks will be microfinance companies and small valid for 18 months to enable the finance companies for granting small applicants to comply with the finance bank licences. The small requirements under the guidelines finance bank will primarily and fulfil other conditions as may be undertake basic banking activities of stipulated by the RBI. On being december 2015 land bank journal 50 satisfied that the applicants have recommended applications to be complied with the requisite taken up for detailed examination conditions, the RBI would consider based on prima facie eligibility vis-a- granting them a licence for vis the guidelines. The detailed commencement of banking business scrutiny involved assessment of under the Banking Regulation Act, financial soundness, proposed 1949. The RBI selected these ten business plan, fit and proper status applicants after three different based on due diligence reports committees contributing to the final received from the regulators, decision, backed by detailed case investigative agencies and banks. An study for each applicant. A important factor was proposed reach preliminary scrutiny of all the i n t o u n b a n k e d a r e a s a n d applications involving prima facie underserved sections of the eligibility including the ability to population. The EAC held detailed raise the minimum initial capital and discussions in multiple sittings on the status of ownership and control the applications based on the by residents as per the guidelines information presented to it. The EAC was carried out by the RBI team. The then submitted its recommendations findings of the preliminary scrutiny to the RBI. An Internal Screening were presented to an External Committee (ISC), consisting of the A d v i s o r y C o m m i t t e e ( E A C ) governor and the four deputy constituted under the chairmanship governors of the RBI thereafter of Usha Thorat, former deputy examined the applications. governor of the RBI. The EAC RBI gave ‘in principle’ approval to 11 payments banks Out of 41 applicants, the RBI be stipulated by the Reserve Bank. cleared Aditya Birla Nuvo Ltd, Airtel “On being satisfied that the M C o m m e r c e S e r v i c e s L t d , applicants have complied with the Cholamandalam Distribution requisite conditions laid down by it Services Ltd, Department of Posts, as part of “in-principle” approval, the Fino Pay Tech Ltd, National Reserve Bank would consider Securities Depository Ltd, Reliance granting to them a licence for Industries Ltd, Dilip Shantilal commencement of banking business Shanghvi, Vijay Shekhar Sharma, under the Banking Regulation Act, Tech Mahindra Ltd, Vodafone m- 1949. Until a regular licence is pesa Ltd. According to the RBI, the issued, the applicants cannot “in-principle” approval granted will undertake any banking business,” it be valid for a period of 18 months, said. On the process of selecting the during which time the applicants applicants, the RBI said, “First, a h a v e t o c o m p l y w i t h t h e scrutiny was undertaken by an requirements under the guidelines External Advisory Committee (EAC) and fulfil the other conditions as may under the chairmanship of december 2015 land bank journal 51 NachiketMor, director, Central could be tried. It did ensure that all B o a r d o f t h e R B I . T h e the selected applicants have the recommendations of the EAC were reach and the technological and an input to an Internal Screening financial strength to service hitherto Committee (ISC), consisting of the excluded customers across the Governor and the four Deputy country,” the RBI said. Nevertheless, Governors. The ISC prepared a final the in-principle approvals are list of recommendations for the subject to certain guidelines, Committee of the Central Board including any developments in on- ( C C B ) , a f t e r i n d e p e n d e n t l y going cases. Going forward, the RBI scrutinising all the applications.” At intends to use the learning from this its meeting, the CCB went through licensing round to revise the norms the applications, informed by the and move to giving licences more recommendations of the EAC and the regularly. “The Reserve Bank ISC, and approved the announced believes that some of the entities who list of applicants. “It has selected did not qualify in this round, could entities with experience in different well be successful in future rounds,” s e c t o r s a n d w i t h d i f f e r e n t it said. capabilities so that different models New and upcoming challenges for RRBs The Reserve Bank of India (RBI) is there are 56 RRBs in the country and examining the efficacy of Regional these will be directly pitted against Rural Banks (RRBs), which will be up the 23 new banks. Once the new against tough competition from 23 banks get going, they will make a new banks — two new private sector play for the rural and semi-urban banks, 11 payments banks and 10 customers that the RRBs currently small finance banks — in a year or serve. two. Expecting competition in the RRBs were established in 1975 banking space to intensify further, under the provisions of an ordinance the RBI has asked RRBs 18 promulgated in September 1975, questions. They centre on the followed by the Regional Rural Banks positive aspects and drawbacks of Act, 1976. The aim was to develop the RRB scheme, whether the the rural economy and to create a scheme should continue as it is, and supplementary channel to the how the banks propose to compete “cooperative credit structure” with a with small finance banks and the view to enlarge institutional credit for rural branch network of commercial the rural and agriculture sector. The banks. Further, the central bank has Government of India has 50% s o u g h t f e e d b a c k o n t h e shareholding in all RRBs. The benefits/drawbacks of a possible government of the respective State amalgamation of RRBs. Currently, where an RRB mainly operates, and december 2015 land bank journal 52 its sponsor bank, hold 35% and 15%, deposits should be with RRBs respectively. As of March-end 2014, instead of with SBI and other PSU RRBs had a network of 19,082 banks. Besides, all banking branches. transactions of State Governments SK Bhattacharjee, General should be solely with RRBs, he Secretary, All India Regional Rural added. RRBs need to assume new Bank Officers’ Federation, says a avatars in the current banking level playing field should be provided landscape, he said. The federation is to RRBs vis-a-vis the new entrants in of the view that all 56 RRBs should be t h e b a n k i n g s p a c e . W h i l e transformed into mini public sector emphasising that RRBs are best banks, with the Centre holding 51%, suited to serve the banking needs of sponsor banks 24% and with the rural and semi-urban areas, balance offloaded to the public. Bhattacharjee said all government Maharashtra among states with highest loss of agricultural land, says IIM-A paper S e v e n s t a t e s i n c l u d i n g hectare) and West Bengal (2.63 lakh Maharashtra have seen the highest hectare). In all, says the paper, an loss in net sown area between 1991- estimated 1.59 million hectare of 92 and 2011-12, with the growing prime farmland was converted to conversion of farm land for non- non-agricultural uses during the 20- agricultural uses, according to year period 1991-2011, translating recent data released by a faculty into an average annual loss of over member of the Indian Institute of 75,000 ha of productive land. “The Management, Ahmedabad. The issue (diversion of agricultural land working paper by Prof Vijay Paul to non-agricultural uses) has become Sharma, Centre for Management in more complex and politicised in India Agriculture, IIM Ahmedabad, says due to widely varied perceptions that evidence shows agricultural about the extent of diversion of land conversion has become a agricultural land and the causes and serious issue in the country and net socio-economic consequences of loss sown area in the country declined by of agricultural land. It is generally about 1.8 million hectare during the perceived that large-scale conversion study period. of agricultural land to non- The states, which have recorded agricultural uses has occurred and the highest loss in net sown area the issue of acquisition of large tracts besides Maharashtra (17.57 lakh of fertile land by corporates and hectare), include Odisha (17.1 lakh d i s p l a c e m e n t o f f a r m e r s , hectare), followed by Bihar (12.4 lakh agricultural workers, and other rural hectare), Tamil Nadu (7.12 lakh communities has become a major hectare), Karnataka (3.1 lakh political rather than socio-economic hectare), Andhra Pradesh (2.73 lakh issue,” says the paper. december 2015 land bank journal 53 The paper says that since Madhya Pradesh, Bihar, Tamil Nadu, economic reforms began in early- Rajasthan, and Assam. 1990s, about three million hectare of “However, the pace of agricultural arable land has been lost during the land conversion has marginally study period. For instance, while slowed during the last decade — Maharashtra lost about 4.37 lakh arable land from about 3.13 lakh hectare, Odisha lost about 1.2 hectare per year in 1991-95 to 1.33 million hectare of agricultural land. lakh hectare in 2006-10 and net Other states, which registered a sown area from about 1.72 lakh decline included Tamil Nadu, Bihar, hectare in 1996-00 to net addition of West Bengal, Kerala, Rajasthan and about 79,000 hectare in 2006-10 — Punjab. The paper further says while largely because of the introduction of at the all India level, area under non- land protection policies and pressure agricultural uses has increased by f r o m c i v i l s o c i e t y , f a r m e r s 2.36 lakh hectare per year or 646 organisations and media,” the paper hectare per day between TE says. Sharma says the trend will (triennium ending) 1991-92 and TE continue if there is no intervention 2011-12, states with high rate of by the government. Efforts should be addition to area under non- made to bring fallow lands and agricultural uses (over three lakh culturable wastelands under hectare) are Maharashtra, Uttar farming with proper safety nets, his Pradesh, Andhra Pradesh, Odisha, paper says. Government to transfer ownership in PSU banks to a new holding company The government announced a banks on strategies for consolidation s e v e n - p o i n t a c t i o n p l a n , among them including mergers and ‘ I n d r a d h a n u s h ’ t o i n f u s e acquisitions. “Banks are encouraged professionalism and fresh capital in to come forward with proposals for to public sector banks. As part of the consolidation strategies…this will be plan, the government announced the a bottoms up approach,” Minister of setting up of Bank Board Bureau State for Finance, Jayant Sinha. (BBB) that will give way to holding Financial Services Secretary company to which the Centre will H a s m u k h A d h i a s a i d : “ T h e transfer its ownership of all these Government has issued a circular banks. that there will be no interference The BBB will be headed by a from it and banks are encouraged to Chairman and will comprise six take their decisions independently other members — three government keeping commercial interests in officials and three experts, two of mind a cleaner distinction between which will be from the private sector. interference and intervention has It will make recommendations for been made. Banks have also been senior appointments and also advise asked to build robust grievance december 2015 land bank journal 54 redressal mechanisms for customers revamp plans announced will make and staff,” he said. “In addition, the raising the balance `1,10,000 crore KPIs will be linked to the f r o m t h e m a r k e t s e a s i e r . performance bonus paid to the MDs Significantly for banks, the and CEOs of PSU banks. ESOPs are government announced a new 100- also being considered for the top point framework of Key Performance management of PSU banks,” Mr. I n d i c a t o r s t o m e a s u r e t h e Adhia added. performance of PSU banks. Twenty To de-stress the banks, the five points each will be allocated to government stressed the need to ‘Efficiency of capital use’ and develop a vibrant corporate debt ‘Growth processes’, while 15 points market and strengthen existing asset each will be allocated to ‘NPA reconstruction companies. The management’ and ‘Financial banks, Mr. Jaitley said, will need a Inclusion’. The remaining 20 points total of `1,80,000 crore over the next will be for qualitative parameters f o u r y e a r s t o m e e t t h e i r such as improvement of external capitalisation needs and said the credit rating. Agriculture scientists have a new mandate to work with farmers The new mandate has been prepared by them about farming, extended to about 6,000 scientists climate, and social and economic functioning at the various centres conditions of the selected villages. and institutes of the Indian Council The scheme says the scientists of Agriculture Research (ICAR) and may perform the functions with the over 15,000 scientists working with help of Krishi Vigyan Kendras (KVKs) state agricultural universities under and Agriculture Technology a programme called Mera Gaon Mera Management Agency (ATMA), both Gaurav (MGMG) launched on July already mandated with extension of 25, 2015. The scheme envisages technology. At national level, scientists to “select villages as per a s s i s t a n t d i r e c t o r g e n e r a l their convenience and remain in (agricultural extension)/principal touch with the selected villages and scientist, Division of Agricultural provide information to the farmers Extension, ICAR, will be the nodal on technical and other related officer. The scheme, however, has aspects in a time frame through disquieted the scientific community. personal visits or on telephone”. “The ICAR scientists’ mandate is only Groups of four multidisciplinary to do fundamental research, scientists each will be constituted at inventions and discoveries, not these institutes and universities. extensions. If they are supposed to Each group will “adopt” five villages s h o u l d e r t h i s a d d i t i o n a l within a radius of maximum 100 km. responsibility, the first casualty will A benchmark report will have to be be research. So, even if the scheme december 2015 land bank journal 55 succeeds in extending the research includes extension education. to these 20,000 select villages, could Instead of augmenting their research we be having enough of research in potential, if you are going to make our hands to extend for the future them do what they are not supposed challenges in agriculture,” asked a to, their condition will only worsen. senior scientist, adding, “the And worldwide, research and research activity will virtually come extension are handled by two to a standstill.” different set-ups. So let’s not try to do C D Mayee, a leading agricultural something like this presuming it to scientist and former Chairman of be some solution to our problems,” Central Agriculture Recruitment Mayee said. “As it is, these centres Board, said, “Though ICAR has are already doing extension to the about 6,000 scientists, only about extent possible by organising farm 3,000 of them are actually available f a r e s a n d u n d e r t a k i n g for research. And if they too are demonstration farms in the region of involved in extension work, who will their activity,” he added. Mayee also do the research?” Mayee pointed out p o i n t e d o u t t h a t e v e n t h e that of the 70-odd farm universities universities’ responsibility regarding in the country, only 10-odd are in extension was to train the extension good shape. They are barely able to workers of the state government’s carry out education (teaching), part extension department and not do of their three-fold mandate that also extension themselves. Goa to form Farmers’ Public Ltd Company To boost agriculture, the Goa Agriculture Minister Ramesh government has decided to form Tawadkar, told. Farmers’ Public Ltd Company that He said the government will soon will provide linkage of national constitute a special expert markets to the local produce. State committee in this regard to conduct Agriculture department, which is field visits to various states and working on a modality to form the study the unique agricultural company, has initiated the liaisoning experiments which can be emulated process with the industry to set up in Goa. “All possible steps will be the structure. “The government is initiated in this regard. Formation of working on to form a Farmers’ Public an expert committee will be the first Ltd Company. Right now, there are step,” the minister said. He said a various ideas under it, including State such as Kerala has done value addition to seasonal fruits like number of researches with seasonal jackfruit, mangoes and cashew. fruit jackfruit promoting it as a There is also an idea of producing health medicinal fruit. Apprising on low-calorie sugar from the toddy of steps initiated for promotion of high-breed coconuts,” State agriculture in Goa, Tawadkar said december 2015 land bank journal 56 government has adopted 58 villages will be undertaken to ascertain under ’Model Village’ concept, productivity of the villages. wherein special agricultural survey RBI moots uniform methodology for calculating base rate Banks could soon lose some of deposits should be calculated using their freedom to fix lending rates. To the latest interest rate payable on ensure that banks’ lending rates are deposits (current, savings and term) more sensitive to changes in the of various maturities. monetary policy rates, the Reserve Further, the cost of borrowings Bank of India issued draft guidelines, should be arrived at using the prescribing a uniform method by average rates at which funds were which they have to arrive at the raised in the last one month interest rates for providing loans. preceding the date of review. Each of T h o u g h t h i s c o u l d r i n g i n these rates should be weighted by the transparency in the pricing of loans, proportionate balance outstanding banks are expected to oppose the on the date of review. Currently, proposed move. The central bank b a n k s , a c c o r d i n g t o t h e i r said it will encourage banks to move, convenience, are using three in a time-bound manner, to the so- methods for calculating the cost of called marginal-cost-of-funds-based funds — average, blended, or determination of their minimum marginal. l e n d i n g r a t e s . U s i n g t h i s Banks, according to the RBI, methodology, the base rates of banks should delineate the components of could soften a tad, going by the easy spread (charged over the base rate) liquidity in the banking system with the approval of their boards. For currently. This could also reduce the the sake of uniformity in these lag between changes in deposit rates components, broad components of and lending rates. the spread finalised by the Indian The RBI has proposed to fix April Banks’ Association should be 1, 2016, for implementing the new adopted by all banks. The RBI said it methodology. This will give sufficient is expected that the new base rate time to all banks to adopt the new guidelines would be helpful in the base rate methodology as well as the medium term goal of banks pricing spread guidelines. Banks will have to their floating rate loans linked to an submit a roadmap clearly indicating external benchmark. Once Financial the time frame for adopting the new Benchmarks India Pvt Ltd (FBIL) methodology within a period of two starts publishing various indices of months from the date of the final market interest rates, banks will be circular. The RBI said the marginal encouraged to price their deposits as cost of funds should be arrived at by well as advances with reference to taking into account all sources of the external benchmarks published funds other than equity. Cost of by the FBIL. december 2015 land bank journal 57 Set realistic repayment schedules, says RBI’s Gandhi to banks Reserve Bank of India Deputy Deputy Governor said, “As we know, Governor R Gandhi asked banks to there is just one technical ensure proper structuring of credit consultancy firm, besides some facilities and beef up their credit specific desks in some banks. “With appraisal skills for managing asset the requirement of independent quality. Besides, they should give up evaluation for Joint Lenders Forums the ‘one size fits all’ approach of (JLFs) and the number of JLFs, there extending loans to clients. He also is a crying need for emergence of emphasised that loan restructuring additional technical capabilities to should be driven by banks’ undertake evaluation of projects, motivation to revive an account, restructuring schemes, etc. Banks rather than merely concentrating on will have to strengthen their in- asset classification and provisioning house desks as well. The RBI benefits. “While granting credit through the Centre for Advanced facilities, banks should set realistic Financial Research and Learning has repayment schedules on the basis of taken the initiative to organise a proper analysis of cash flows of the capacity building programme for borrowers. “This would go a long way bankers. in facilitating prompt repayment by Another suggestion that has come the borrowers and thus improve the up for bad loans management relates record of recovery in advances,” said to limiting the number of banks and Gandhi at an Asset Reconstruction & financial institutions that should be Non-Performing Assets Management permitted in a consortium or even in Summit. a multiple banking arrangement. “It He cautioned that a ‘one size fits is said that the banks with very all’ approach and providing plain meagre share (loan exposure in a vanilla loans to all clients may not be consortium) neither have incentives in the interest of banks as well as its nor inclination to independently customers. Considering the effect assess the (loan) proposal and they bad loans have on both capital and typically and blindly go by the one liquidity position of banks, Gandhi that has the bigger share. Even if the felt that there is an urgent need for bank has in-house technical banks to reduce their stressed assets capabilities, with a small share its and clean up their balance sheets voice is not strong enough,” Gandhi lest they become a drag on the said. Therefore, the suggestion is to economy. He underscored that one of have a regulatory limit on the the fundamental issues that number of members in a consortium hampers bad loan management is or multiple banking arrangements so the inadequacies in the credit that every member has at least 10% appraisal capacity of banks, more of the exposure and therefore, will specifically on project appraisal. The undertake serious independent december 2015 land bank journal 58 credit appraisal and credit concentrating on asset classification monitoring. and provisioning benefits,” explained However, there are counter views Gandhi. about this suggestion, especially On the recovery side, Gandhi said with regard to the freedom available the performance of ARCs is not very to banks and borrowers to take encouraging. As on March 31, 2015, commercial decisions related to the average recovery rate (assets loans. Referring to the sudden drop resolved as a percentage to assets in the assets being ‘restructured’, the acquired) of ARCs was 31%. One of Deputy Governor observed that it the reasons for the dip in the average seems banks have become very recovery rate is the fact that a choosy in restructuring loans to substantial part of the assets under borrowers who are under stress. One management of ARCs is acquired of the reasons cited for the drop in recently. Further, wide variation in restructuring of assets is that ‘banks recovery rates among ARCs has also have no incentive in restructuring’. been observed for the same reason. “We feel that the decision of banks in Only a few of the 15 ARCs appear to restructuring should be driven by have been successful in acquiring their motivation to revive an account assets from banks. Of the 15 which is under temporary financial registered ARCs, the top three difficulty and preservation of the (ARCIL, JM Financial and Edelweiss) economic value of viable entities in account for more than two-thirds of the interest of both the creditors and the total assets of all ARCs. the borrowers, rather than merely Maharashtra Government orders review of district cooperative banks The Maharashtra government has improper purposes. Several DCC ordered review of alleged financial banks misused money meant for mismanagement in all 30 district salaries of primary and secondary central cooperative (DCC) banks s c h o o l t e a c h e r s a n d h a v e during the last 15 years. It has also deliberately delayed the recovery of sought to fix responsibility over the loans. We are figuring out the financial losses incurred by them. amount. I think the amount runs State Revenue Minister Eknath into thousands of crore,” alleged Khadse, in a meeting with Khadse. He said that bank guarantee Agriculture and Cooperative given by the State government to Secretary Shailesh Kumar Sharma, various cooperative sugar and cotton took stock of the financial position mills is more than `1,200 crore and and the amount of crop loans is yet to be recovered. provided to farmers by DCC banks. “We have given instructions to “Government money was used for prepare a detailed report of all DCC december 2015 land bank journal 59 banks. The amount given to them by properties of the directors and the State, the amount disbursed, the recover our money from the auction amount recovered, etc and fix the of their properties,” Khadse said. responsibility of any wrongdoings on the directors. We will attach the Sovereign Gold Bond Scheme and the Gold Monetisation Scheme The Union Cabinet approved two Scheme, “there will be no need to buy schemes — the Sovereign Gold Bond actual gold as customers can buy Scheme and the Gold Monetisation gold bonds which will be relatable to Scheme — that could bring idle gold the weight of gold,” Finance Minister lying with Indian consumers into the Arun Jaitley said. “The bonds will be economy and also reduce India’s issued in denominations of 5 grams, dependence on gold imports. 10 grams, 50 grams and 100 grams Through the Gold Monetisation for a term of five years to seven years Scheme, gold in any form can be with a rate of interest to be calculated deposited with banks for a period of on the value of the metal at the time one to 15 years. This gold will earn of investment,” Mr. Jaitley told. interest and redemption will be at the However, Mr. Jaitley announced that prevailing market value at the end of there would be a cap of 500 grams the tenure of deposit. that a person can purchase in a year. The Sovereign Gold Bond Scheme Such bonds would be offered to only is aimed at customers looking to buy Indian citizens and institutions. gold as an investment. Under the ‘Quick fixes’ will not help – RBI Governor Flagging the issue of “Jugaad” — change the environment for the the way of “working around” better. That is indeed what we are difficulties by hook or by crook — RBI trying to do. All this requires Governor Raghuram Rajan said it patience,” said Rajan. will neither help final product quality “The world is a difficult place. Let nor in sustainable economic growth. us recognise we are doing quite well “Jugaad is a thoroughly Indian way in comparison – indeed, many of coping but it is predicated on a industries in difficulty have a difficult or impossible business problem because exports are low or environment. And it encourages an imports are very competitive, and not attitude of short cuts and evasions, because domestic demand is none of which help final product inordinately weak. “We cannot quality or in sustainable economic compensate entirely for what is growth. “While we should respect the happening across our borders, else entrepreneurial abilities of our we will risk acquiring the problems business people in difficult our fellow emerging markets have,” environments, it is better for us to said Rajan. december 2015 land bank journal 60 New ‘rurban’ scheme to get `5,142 crore The government has announced a State governments will identify scheme for rural areas with an outlay the clusters, which will be according of `5,142.08 crore. The programme, to a ‘Framework for Implementation’ named Shyama Prasad Mukherji by the Union government. “The Rurban Mission (SPMRM), will clusters will be geographically develop 300 rural clusters, each contiguous gram panchayats with a containing a population of about population of 25,000 to 50,000 in 50,000. The government says the plain and coastal areas and a ‘rurban mission’ will develop a population of 5,000 to 15,000 in cluster of smart villages. desert, hilly or tribal areas. There will The clusters would be developed be a separate approach for selection by stimulating economic activities, of clusters in Tribal and Non-Tribal developing skills and infrastructure Districts,” a release said. The amenities, as well as supporting local clusters will be developed based on entrepreneurship. The government demography, economy, tourism and also aims to reduce migration to pilgrimage significance, and urban areas through the initiative. transportation corridor impact. Growth will be short-lived if it’s too fast: RBI Governor RBI Governor Raghuram Rajan Rajan, however, observed that the sought to stave off the same by 3.6% retail inflation reading was saying that the focus should be on seen to be low due to the “base improving the business environment effect”. Adjusted for the base effect, it as a way to drive growth rather than would be around mid-5%, he said. extending stimulus and rate cuts. Emphasising the need to achieve “While our policy will accommodate, growth the right way, Rajan said substantial reforms are needed to Brazil was growing at about 7.6% a c r e a t e a n e n v i r o n m e n t f o r few years back but fast expansion businesses. We want to keep and rapid interest rate cuts had inflation low even in the future,” dragged down the country’s Rajan said while speaking at the 4th economy. “Growth has to be CK Prahalad Memorial Lecture obtained in the right way. It is organised by the CII. possible to grow too fast with CK Prahalad Memorial Lecture substantial stimulus, as we did in organised by the CII. 2010 and 2011, only to pay the price He stressed on the importance of in higher inflation, higher deficits, being conservative. This, according and lower growth in 2013 and 2014,” to Rajan, is aimed at ensuring that Rajan said. India, he said, must “we get moderate nominal interest resist special interest pleas for rates that satisfy not just the vocal targeted stimulus, additional tax borrowers but also the silent savers.” breaks and protections, directed december 2015 land bank journal 61 credit, subventions and subsidies rendered industry uncompetitive, — all of which have historically government overextended, and the Banks can conduct factoring business without prior nod: RBI The Reserve Bank of India said In order to ensure that the bank banks can carry out the business of offering factoring services has factoring departmentally, without enough margin to cover any obtaining its prior approval, subject deficiencies in the payment of the to conditions. When a bank related invoice, it should be ensured undertakes factoring, an enterprise that the pre-payment amount offered sells its accounts receivable by banks for the receivables acquired (invoices) to the bank at a discount. under factoring should not exceed Later, the bank recovers money from 80% of the invoice value. Further, the buyer on the maturity date of the the RBI said setting up of factor invoices. subsidiaries or investments by The RBI said banks may banks in factoring companies will be formulate a comprehensive factoring subject to extant guidelines on services policy with the approval of i n v e s t m e n t s b y b a n k s i n their Boards and offer the services to subsidiaries and other companies. their customers in accordance with Investment of a bank in the shares of this policy. Factoring services may be factoring companies inclusive of its provided either with recourse or subsidiary carrying on factoring without recourse or on limited business will not, in the aggregate, recourse basis. These services exceed 10% of the paid up capital should be extended in respect of and reserves of the bank. invoices which represent genuine trade transactions, the RBI said. RBI names 2 banks 'systemically important' The Reserve Bank of India (RBI) financial system and the economy as named State Bank of India (SBI) and a whole from global crisis. During a ICICI Bank Ltd. as Systemically financial crisis, problems faced by Important Banks, requiring them to c e r t a i n l a r g e a n d h i g h l y keep aside an additional capital to interconnected financial system, cover risk. However, the additional hurting the real economy. capital requirement will be lower SBI currently has a much higher than previously estimated and the level of tier-I at 9.62% as opposed to central bank has offered an easy 7.00% required under the current passage for the banks to adhere to guidelines. SBI and ICICI Banks are the new norms. The capital systemically important due to their requirements will rise by 0.6% and size, cross jurisdictional activities, 0.2% point for SBI and ICICI Bank, complexity, lack of substitutability respectively to ring-fence the and interconnectedness. The december 2015 land bank journal 62 additional capital requirement may Stability Board (FSB) recommended not have much significance because that all member countries needed to banks in India in general maintain have in place a framework to reduce more than two to three percentage risks attributable to systematically points more capital than the important financial institutions in regulatory stipulation. their jurisdictions. If a foreign bank RBI said the additional common having branch presence in India is a equity tier-1 requirements for SBI global systemically important bank, and ICICI Banks will be applicable it has to maintain additional capital from April 1, 2016 in a phased surcharge in India as applicable to it manner and would become fully proportionate to its risk-weighted effective from April 1, 2019. This will assets in India, RBI said. be in addition to the capital conservation buffer. The Financial Compensate PSBs for Jan-Dhan : Dr. Rajan Reserve Bank of India governor balance requirement and avail of a Raghuram Rajan has taken on the debit card, `1 lakh accident government for thrusting the Jan insurance cover, `30,000 life Dhan Yojana (JDY) on public sector insurance and an overdraft facility b a n k s a n d h a s c a l l e d f o r after satisfactory operation of the compensating the PSU lenders. This account for six months. In FY15 observation from Rajan comes in the public sector banks opened 16.57 central bank's annual report which crore accounts under this scheme. has a new section - 'Governor's Over 10 crore of the accounts are in overview'. "We should recognise that rural areas and 45% of them have PSBs undertake public interest zero balance in them. The total activities (like the rollout of accounts deposits mobilized through the under the Pradhan Mantri Jan Dhan scheme was `22647.35 crore. PSU Yojana) that are not always fully banks have said that zero balance compensated. Government should accounts are a drain on their endeavor to keep the competitive resources but express hope that playing field level by fully direct benefit transfers would compensating banks for activities it improve cash balances. wants undertaken in the public Acknowledging that the JDY had interest," the governor said in his given a fillip to financial inclusion review. Rajan said that the government The Jan Dhan Yojana has been needs to ensure activity in these trumped as a major achievement by accounts by rolling out DBT for all the NDA government. The scheme payments. Also banks need to start allowed every unbanked person to rolling out credit products after due open a basic bank account with zero diligence and strengthen their december 2015 land bank journal 63 business correspondent network hiring freezes, they will be and increase awareness through unnecessarily hampered if they are financial literacy drives. According to u n a b l e t o p a y a p p r o p r i a t e Rajan, PSU banks are in a compensation to the middle and disadvantages position also because senior managers as well as board of skilled manpower. "Because PSBs members," said Rajan. He added that compete in the same market place for the higher compensation should be talent as do private sector banks and with higher accountability and cost foreign banks, and may skill gaps are rationalization to bring overall costs i n c r e a s i n g a t t h e m i d d l e in line with private banks. management levels because of past Trying times for banking sector, says Deputy RBI Governor The banking sector is going assets and restructured loans, rose t h r o u g h “ t r y i n g t i m e s ” , from 9% (FY-14) to 10% (FY-15). The characterised by low credit growth, return on equity stood at 9.88% last impairment of assets and low fiscal (against 10% in the year-ago- profitability, HR Khan, Deputy period). “On top of that, Indian banks Governor of the Reserve Bank of are to meet the global capital India (RBI) said. Addressing the requirements. The government’s inaugural ceremony of Bandhan `75,000 crore capital infusion Bank, he said credit growth dipped program will help towards that,” he from 15% in FY-14 to below 10% last added. According to him, the fiscal. Deposit growth has come banking space is set to become more down from 15% to 11%. The asset competitive. quality, including non-performing Bandhan Bank begins its journey with 501 branches Bandhan Bank started its include the 75 lakh MFI customer journey, 14 years after Chandra base, almost entirely women. Shekhar Ghosh started Bandhan “We are the first bank to start its micro finance institution (MFI). operations with so many branches Bandhan will be the fourth bank to and customers. No other bank had be headquartered in the city and also such a huge launch. We are the first private bank to be based in committed to bringing a new era in Kolkata. Finance Minister Arun Indian banking,” says Ghosh, Jaitley, hoped the expansion of Managing Director and CEO of banks would curb Ponzi schemes. Bandhan Bank. However, he added Bandhan has started with 501 that the elevation from MFI to a branches in 22 States, 50 ATMs, universal bank will not shift the 1.43 crore accounts and a loan-book focus of its operation. Access to of `10,000 crore brought forward cheap deposits, (replacing loans from from its MFI days. The depositors commercial banks at an average december 2015 land bank journal 64 borrowing rate of 12.5%) will bolster handle the challenge and meet the its micro-credit activity. Bandhan, credit requirement of rural and currently, records a 99% recovery unbanked people. There are some rate from the segment. regulatory issues… they are being HR Khan, RBI Deputy Governor, considered by RBI and will be said, “Bandhan is suitably placed to considered sympathetically”. Overdraft under Jan Dhan scheme nears `120-cr mark Nearly `120 crore have been taken available in 43.31 lakh accounts and by bank account holders as overdraft had been sanctioned for 22.43 lakh under the Pradhan Mantri Jan Dhan accounts by October 30, 2015. Yojana (PMJDY). With repeated “We are monitoring the progress of prodding by the government, banks the overdraft facility as it is one of the had disbursed `11,825 lakh to `8.37 main tools for financial inclusion. We lakh account holders under the have been talking to banks and scheme as of October 30, 2015 expect that in the coming months according to Finance Ministry data. more account holders will use the In the past banks had often shied facility,” said a Finance Ministry away from providing the facility over official, adding that the facility has repayment concerns. To encourage n o w b e e n a u t o m a t e d . T h e banks to provide an overdraft facility Department of Financial Services in to subscribers, the Reserve Bank of the Finance Ministry had also taken India had also included the funding it up with banks, pointing out that as part of priority sector lending the progress was very poor. “It has targets. An overdraft facility of been requested by some State `5,000 under the PMJDY is available G o v e r n m e n t s t o c o n s i d e r to one of the earning (preferably a automation of the Overdraft facility woman) account holders in each based on transaction record so that family after six months of this can be easily availed by a satisfactory transactions. Of the customer through … on-line or ATM total of 19.13 crore accounts opened mode,” it had said in a recent note to under the PMJDY since August banks. 2014, the overdraft facility is now FM sets loan target of `1.22 lakh crore under PMMY Finance Minister Arun Jaitley has minister said that earlier there was set a target of `1.22 lakh crore for no institutional mechanism to fund loans to be given by state-run banks this unfunded segment and access to to promote new entrepreneurs under credit came at a high cost. Through the Pradhan Mantri Mudra Yojana t h i s s c h e m e , g r a s s r o o t s (PMMY) which will seek to "fund the entrepreneurs will get cheaper credit unfunded." Making a pitch for based on their business activity, he promoting entrepreneurship, the said. december 2015 land bank journal 65 There is need to promote more time due to external factors entrepreneurship because jobs in such as economic slowdown. But both public and private sectors are f i n a n c i a l i n s t i t u t i o n s h a v e limited, the minister said. "Large experienced that 99% small industries offer only two crore jobs borrowers repay on time, he said. and they have their own challenges State-run banks kick-started mega such as slowdown in the global credit campaigns across the country economy," Jaitley said. The minister to give a push to Pradhan Mantri said about 5.77 crore small business Mudra Yojana. Mudra Ltd has been units generate almost 11 crore jobs. established as a subsidiary of SIDBI, So far, state-run banks have given with an initial corpus of `5,000 crore loans to 37 lakh people totalling to provide refinance to all banks `24,000 crore, he said. Jaitley said seeking refinancing of small some borrowers in large industries business loans under Pradhan are not able to repay loans and seek Mantri Mudra Yojana. RBI rejects plan for 100% FDI in banks The Reserve Bank of India (RBI) against the 74% cap. The finance has turned down a proposal from the ministry, however, saw it as a government to allow up to 100% retrograde step and got the regulator foreign direct investment (FDI) in to stick to the prescribed ceiling. In banks. RBI has not provided a clear fact, a few years before that, during reason to turn down the proposal UPA's tenure, there had been a major from the department of industrial battle between the finance ministry policy and promotion (DIPP) that and the RBI on how the FDI norms deals with FDI policy. But in the past should be applied, with North Block the regulator has seen banking as a finally saying that setting the foreign sensitive sector and opposed investment rules was in its domain. allowing significant shareholding by Currently, the government foreign institutional investors, who permits 74% FDI in private banks, are seen as short-term investors and with up to 49% allowed under the can enter or exit a stock for short automatic route. Foreign holdings durations, largely to book profits. beyond 49% need to be cleared by the Private Banks are particularly Foreign Investment Promotion Board keen on a higher ceiling and (FIPB). Portfolio investment in the investors are also hoping for a sector is capped at 49% and banking relaxation. In fact, HDFC Bank is one of the segments where the recently got permission for 74% composite caps, which allow foreign investment and was also fungibility between FDI and FII flows, found to be in breach of the norms for have not been applied as the a short period.A few years ago, in the government argued that it is a draft norms for new banks, the RBI "sensitive sector". had suggested limiting FDI to 49%, december 2015 land bank journal 66 Dr. Rajan is first Indian to be elected as BIS Vice Chairman Dr. Raghuram Rajan, the symposium in 2005. He was governor of the Reserve Bank of prescient. The global financial India, became the first Indian to be markets were hobbled during the elected the vice-chairman of the credit crisis. Indeed, he criticises Bank for International Settlements, western central banks for their easy the bank for global central banks monetary policies, which may lead to which works to improve the financial next crisis. As the vice-chairman of stability and prescribes rules for BIS, he could attempt to influence banks across the globe. The 52-year- rule making better than as a old Rajan who has been critical of member. BIS, established in 1930 in central banks of the West for their B a s e l , S w i t z e r l a n d , i s a n excessive printing of money to bring i n t e r n a t i o n a l o r g a n i s a t i o n back growth, would assist Jens consisting of central banks and Weidmann, chairman of BIS, who is monetary authorities of various also the head of Bundesbank, the countries. It was created through an German banking regulator. international treaty (The Hague "Raghuram Rajan was elected as Agreements of 1930). Rajan who took the vice-chairman, the board of over as the RBI governor in d i r e c t o r s o f t h e B a n k f o r September 2013, joined the BIS International Settlements (BIS), at board in December 2013. His current its meeting in Basel held 9-11-2015 term as RBI governor ends in for a period of three years from 2016."The board is responsible for November 10, 2015," the RBI said in determining the strategic and policy a release on its website. Rajan, a direction of the BIS, supervising BIS former chief economist at the Management, and fulfilling the International Monetary Fund, saw specific tasks given to it by the his stature as an economist get a Bank's Statutes. It meets at least six boost when he warned of the dangers times a year," BIS said on its website. of risks building up in the system in a RBI paves the way for banking M&As in Banking The Reserve Bank of India RBI has conditions including if ‘it is in public thrown open the doors for mergers interest' and in the ‘desirability of and acquisitions (M&As) in the diversified ownership.' banking industry by signaling that it Many investors who owned up to is open to persons owning more than 4.99% in banks and were keen on 10% stake in a bank. For the first raising it but did not do so till now time in decades the central bank has will have an opportunity to raise their said that it could permit promoters, holdings. If they get the central bank or investors to own more than 10% if permission to buy 5%, then they the applicant meets certain automatically have a right to go up to december 2015 land bank journal 67 10%."This indicates that RBI would But the central bank has detailed be willing to allow shareholding of the ‘fit and proper criterion' that more than 10% for purposes of would be used to grant permission consolidation,'' said Shinjini Kumar, for bigger stakes."The applicant's Partner at consultants PwC. "With integrity, reputation and track the ability to grant 26% voting rights record in financial matters and as per the amendment bill even compliance with tax laws,'' will be a though not automatically extended barometer to judge the ‘fit and proper here, this could pave the way for criteria', the central bank said in a increased promoter shareholding note. "Where the applicant is a body and consolidation activity in corporate, its track record or banking."For a central bank which reputation for operating in a manner has been rigid about the 5% cap on that is consistent with the standards ownership and a 10% voting rights to of good corporate governance, ensure that no single holder gets a financial strength and integrity in dominant position in running a addition to the assessment of bank, the latest is a reversal of policy. individuals and other entities Indeed, there were instances such as a s s o c i a t e d w i t h t h e b o d y Axis Bank (then UTI Bank) where RBI corporate."These directions will also forced HSBC to cut its stake which apply to compulsorily convertible led to an eventual exit. It had even bonds, voting rights or convert ordered Uday Kotak to cut his stake optionally convertible bonds, RBI and set a time line to bring it down. said in a press release. Kotak owns 34% in the eponymous bank. German cooperative banks DZ, WGZ finally agree to merge German cooperative lenders DZ Bank's takeover of Postbank in 2010 Bank and WGZ Bank have agreed in - will create a unified bank for the principle to merge after several failed c o u n t r y ' s m o r e t h a n 1 , 0 0 0 attempts to join forces, creating the c o o p e r a t i v e l e n d e r s , w h o s e country's fourth-largest lender with customers are also their owners. The around 500 billion euros ($534 lenders expect annual cost savings of billion) in assets. Six years after at least 100 million euros and plan to scrapping the last attempt, DZ Bank cut jobs "moderately" from their and WGZ Bank will pool investment combined 32,000-strong workforce, to take on challenges such as spreading the burden evenly tougher banking rules, increased between them. DZ Bank and WGZ competition and demand for more Bank's function is to supply services digital services. such as transaction banking or The deal is Germany's largest liquidity management to cooperative banking merger since Deutsche banks as well as products such as december 2015 land bank journal 68 U n i o n I n v e s t m e n t - b r a n d e d August. It will be the fourth-largest investment funds, Schwaebisch bank by assets after Deutsche Bank, Hall-branded home loans or R+V- Commerz bank and KfW. So far, no branded insurance policies. They estimates have been made yet on the also back corporate loans if single one-off costs of the merger, they said. items exceed a local cooperative DZ Bank Chief Executive Wolfgang bank's means. Kirsch and Chairman Helmut The banks said they had agreed Gottschalk will lead the combined on a memorandum of understanding group, while WGZ CEO Hans-Bernd and expected to sign a merger Wolberg and WGZ chairman Werner contract in March or April 2016, with Boehnke are poised to become the combined bank to start in deputies. RRBs can provide Internet Banking facility Regional Rural Banks (RRBs) will etc. and no online fund-based be allowed to provide basic Internet transactions are allowed. RRBs banking facilities to its customers. At providing such facilities must have a present, RRBs are not permitted to capital of over 10% and networth of provide such facilities. The RBI `100 crore as on March 31 of the guidelines has suggested that immediate preceding financial year Internet banking facility is strictly for and must have no accumulated non-transactional services, such as losses. The gross NPAs must be less balance enquiry, balance viewing, than 7% and net NPAs not more than account statement download, 3%, among other requirements. request for supply of cheque books, Changes in ARDBs 1) Smt. K.S.M. Lakshmi, has assumed charge as Managing Director of the Andhra Pradesh State Coop. Bank Ltd., w.e.f. 8.10.2015.
december 2015 land bank journal 69 AGRICULTURAL NEWS Sugarcane: Seeds of a successful business model Income generation is the most of mechanical availability for important issue for a farmer today as planting and harvesting, water and several agriculture produces do not electricity shortage.“Though the get a good price and marketing main issue is non payment on time facilities are not always readily which is largely a government based available. If proper technology is decision as technical experts we on provided on time and implemented our part have tried to ease the with the combination of market financial crunch of the farmers by avenues it can lead to profitable encouraging them to also take up farming. In line with this finding, the seedling production. Many farmers Water Technology Centre, at the in the state have taken this up as an Tamil Nadu Agricultural University additional activity and are earning a (TNAU) has developed a technique better revenue,” explains Dr.B.J. called seedling production in Pandian, Director, Water Technology sugarcane to help sugarcane Centre, TNAU. Mr. B. Jayabal, growers. Thatchan Thottam, Cheyuar, This technology has been Tiruppur District entered into this identified as a separate enterprise line with technology support from and promoted among many nursery the University. “Within two years, I growers. In this method the have produced 5.50 lakh seedlings sugarcane buds are grown in earning nearly `2.5 lakhs as income. portrays and then transplanted I was advised to develop a business when they are 25-35 days old in the model by printing visiting cards and main field under wider spacing registered my nursery as a firm to combined with sub surface drip p a r t i c i p a t e i n G o v e r n m e n t irrigation (SSDI). Though Tamil programmes on a competitive basis,” Nadu ranks first in cane productivity he says. Another producer Mr.T. in India (production stand at 105 Marirajan, from Tiruppuvanam in tonnes a hectare an average) the Sivagangai says, “Production for one mills have not been paying money on seedling is only `0.80 and the selling time to the growers and there is no price is `1.40 per seedling. I produce provision for interest on late 50,000 seedlings per batch and get payments. And a farmer can sell his `25,000 profit in a month.” cane only to a particular sugar mill The popularity of this technology and he is at the mercy of the mill is fast catching up even with owner for accepting his produce and professionals like Mr. R. Ramesh getting some payment on time. Kumar an engineer from Papanulam Apart from this there are a host of in Tiruppur District. He runs his problems like labour shortage, lack production unit like a factory december 2015 land bank journal 70 employing 5-6 women labour daily technology has twin advantages. For with automated bud chippers and the farmers it helps achieve higher producing 1.00 lakh seedlings in productivity (under normal planting every batch with his available two 105 tonnes are harvested under SSI shade nets. Admitting to the fact that cultivation 105 to 110 tonnes from a grievances from farmers across the hectare is harvested), better return state on disbursal of money not being and saving on water, electricity and done on time Dr. Pandian says, “If labour. For the sugar factories it these farmers can take up this ensures higher recovery in increase initiative they can easily overcome crushing days and additional their financial strain till the mills employment. d i s b u r s e t h e a m o u n t . ” T h i s Controlling rhizome rot in Ginger Rhizome rot, also called soft rot, is Crop rotation with non-host crops one of the most devastating diseases like leguminous crops, maize, ragi, of ginger. Initial symptoms of the paddy will not only benefit the soil disease appear as light yellowing of nutrient supplementation but also leaf tips which gradually spread keep the diseases under check. down to the leaf blade and leaf Seed rhizome dip treatment with sheath along the margin. During Trichoderma harzianum l0 gm per early stages, the middle portion of litre of cow dung slurry, before the lamina remains green while the sowing is effective. One per cent of margin turns yellow. Subsequently bordeaux mixture spray just after the yellowing spreads to all leaves extraction is also effective. followed by drooping, withering and Drenching the seeds with bordeaux drying. Infected shoot can be easily mixture in 25 litres of water pulled out from the soil. dissolved in 6 kg of copper sulphate Use of healthy rhizome is one of solution and again after germination the most important preventive at 2-3 weeks interval gives partial measures. Cultivars such as Maran, control. Rhizomes treated with Nadiya and Narasapattom are (Trichoderma bio-control agent) at reported to be resistant to this rate of 5gm / kg of rhizome for 30 infestation. Water-logging in the field minutes proves effective. Application must be avoided. A raised bed of 30 of Trichoderma bio-control agent (2.5 cm height and 1m width is kg mixed with 50 kg FYM) 10-15 days recommended. Provide proper before sowing and oil cakes making drainage and keep land free from are recommended. Soil drenching weeds at all times. Collect the with Mancozeb (0.3 per cent) or diseased material as and when the M e t a l a x y l a t 5 0 0 p p m i s disease is noticed and burn them. recommended in epidemic disease Plan early planting during April. areas. december 2015 land bank journal 71 Wider spacing in crops helps tide over water scarcity The challenge in increasing crop for adopting this method. The Kendra productivity is more especially in dry also conducted 108 frontline areas, where it is a tough task for demonstrations for 270 farmers and both farmers and scientists alike. suggested they plant the high yielding While digging ponds to store hybrids of pearl millet (bajra/cumbu) rainwater might be advised, the and sunflower provided by the impracticality of doing it by small kendra with wider row spacing. farmers with less than three acres is Farmers in Bijapur region started still an issue. For such small farmers planting their crops with wider row the krishi vigyan kendra in Bijapur, spacing of 120 cm (between rows) x Karnataka, has developed a method 5-10 cm (between plants) and were to overcome water scarcity. It is a able to get 20-25% better yield. Cases simple method where farmers are of infestations were also noticed to be advised to plant their crops with a quite low.“We did a systematic study wider spacing between them. Bijapur on pearl millet and sunflower since is situated in northern Karnataka these two crops are quite common in and is frequently hit by droughts. this region. An additional net profit of This area receives an annual rainfall `3,910 per hectare was achieved in of 593.3 mm which is insufficient for pearl millet and `8,580 a hectare in most of the dry-land crops. sunflower over the conventional “In general, farmers adopt narrow method,” says another scientist Dr. row spacing for planting the crops. S.Y. Wali. This technology is There is a standard procedure with presently being adopted in 15,500 farmers adopting their own hectares in Bijapur, Bagalkot and measurements according to their Koppal districts of Karnataka. choice. By doing so, there tends to be Crop productivity is largely a stiff competition between the plants determined by the amount of soil for moisture as the plant grows. The moisture. Crops cultivated with moisture requirement will be more wider row spacing coupled with especially during the peak flowering repeated deep inter cultivation helps and grain filling phases, but there will to create dust mulch on the soil be less soil moisture leftover, thereby surface. This dust mulch acts as a affecting the yield of the dry-land barrier from higher evaporation crops,” explains Dr.S.S.Nooli, losses, which ultimately leads to scientist at the Kendra. In better moisture availability and collaboration with the All India hence better yield. Farmers should Coordinated Project for Dry Land note that this project on pearl millet Agriculture and Regional Agricultural and sunflower was tested only in Research Station, 34 awareness Bijapur region, Karnataka. It cannot programmes were conducted for be generalised for other states, farmers from 80 villages on the need according to the research team. december 2015 land bank journal 72 TNAU develops better efficiency stoves In India, 80% of the total outer wall has two rectangular population lives in villages. The secondary air openings on both sides major energy demand of rural at the lower portion. The inner wall population is for cooking which has 1cm diameter holes which contributes to about 98% of their maintain a triangular pitch of total energy consumption. Wood, approximately 3 cm. Separate agricultural waste and biomass are mounds are provided for holding used as fuel in rural kitchens. bigger and smaller vessels. The Conventional stoves (chulha) take secondary air enters through the more time for cooking, more difficult rectangular opening in the outer to fire and consume more fuel. They wall, gets heated in the annular also waste a lot of energy and pose chamber and distributed through many pollution hazards. Most the holes in the combustion traditional stoves can utilise only 2 – chamber. The preheated air helps in 10% of the energy generated by the proper burning of the fuel. fuel. The growing gap between Another one called double pot availability and demand for firewood portable chulha (chimney-less) is caused by traditional stoves forced made with two walls with an air gap technologists to concentrate their of 2.5 cm. There are two secondary attention on improving the thermal air inlets, one on the outer wall with efficiency of stoves. rectangular shape (17 cm x 1 cm) In view of this the department of near the combustion chamber and Bioenergy at the Tamil Nadu the other a circular hole of diameter 5 Agricultural University, Coimbatore cm at the bottom of the second pot. A has developed a single-pot chulha. cast iron grate is placed at the The single-pot chulha has a double bottom of the combustion chamber. wall with a gap of 2.5 cm. It has a Those interested can contact the grate at the bottom of the department for further details and combustion chamber. The ash can availability of the chulhas. be collected below the grate. The A note - Why it doesn’t pay to be a small farmer Every second male worker and two What are the causes behind this out of three female workers in the agrarian crisis? VK Ramachandran, country are involved in agriculture. professor at Indian Statistical There are nearly 120 million Institute, who has carried out cultivators and 144 million landless extensive village studies in different agricultural labourers. Between parts of India, stresses that this is 2001 and 2011, 9 million people quit not a generalized crisis affecting all cultivation but 38 million joined the farmers. "The crisis affects the small ranks of agricultural labourers. and marginal farmer, and less december 2015 land bank journal 73 severely, the medium one. Large Institute, an international think farmers are thriving," he says. tank, says that they succeed because Recent survey reports of the National the big farmers have a large area Sample Survey Organisation (NSSO) under cultivation, yielding more seem to confirm this. A revealing marketable surplus and they can analysis of the economics of farmers bargain for more remunerative prices based on data collected in 2012-13 for their produce. "Small holders shows the shocking condition of have low production (due to less farmers owning less than a hectare of area) and, thereby, less marketable land. Although such small holders surplus. Their transactions costs are make up nearly 83% of cultivator very high. Large farmers also have households, their average monthly access to credit, extension, income-expenditure shows that they technology, which the small holders are all in the red — their expenditure do not," Joshi told. Ramachandran is more than income. This is despite underlines another key reason the fact that all cultivators behind the small farmers' distress — supplement their incomes from the unrelenting rise in input costs, cultivation with other incomes. The which the small farmers are unable small landholder does this by animal to cope with while the big ones, husbandry, wage labour in others' though affected, can still take in their fields and through a range of non- stride. "All input costs — water, farm activities including casual fertilizer, seeds, machines, labour labour in construction, petty sale of and fuel — have gone up, while prices goods and services, etc. The medium obtained for the final produce have landholder starts making some n o t r i s e n c o m m e n s u r a t e l y . savings and is able to invest in Withdrawal of subsidies by public productive assets like pumps, authorities has further aggravated agricultural machines etc. But what the burden. This has made small emerges most starkly from this data holdings unviable," Ramachandran is this: for the big land-holder, say, said. with over 10 hectares of land, Among all the inputs needed for monthly incomes are nearly ten agriculture, water is the most times more than the farmer with less crucial. In India, out of the net sown than half-a-hectare land. Even the area of 141 million hectares just 65 big land-holder draws income from million hectares is the net irrigated nonfarm activities, but these are area. This means that about 54% of salaries from better paying jobs, the sown area is dependent on rains. rent, and other commercial income. This constitutes the biggest source of Why can large land-holders do vulnerability for small farmers. well while the smaller ones fail? Either they have to pay to get water Pramod Kumar Joshi of the from tube wells or just pray that the International Food Policy Research rain gods do not fail them. According december 2015 land bank journal 74 to the NSSO survey, among all interest of smallholders, says Joshi. farmers with irrigated fields, 71% Agro-processing contract farming, were using groundwater while only cooperatives, cluster farming and 17% could use water from irrigation farmer producer organizations need canals. That's because canals need to be strengthened by attracting public investment while groundwater corporate sector in agri-business, he is drawn by using pumps that have to suggests. be bought by farmers. T a k i n g a d i f f e r e n t v i e w , Fragmentation of land has reduced Ramachandran urges ensuring credit the average size of holdings in India to to small holders, delivery of extension just 0.6 hectares, according to the services to bring best scientific NSSO survey report. About 103 progress, subsidized inputs like million hectares of land is cultivated fertilizers and pesticides, and in India but it is divided into a availability of irrigation water. staggering 449 million plots of land, "Increase in public investment in some of them just a few hundred agriculture is the key to provide square feet in size. Just 6% of sustainable and dignified livelihoods cultivated land is in 10 hectare or to our farmers. Their issues have larger holdings. So, what needs to be become marginalized and they need done? Regionally differentiated to be given top priority," he said. policies are needed to protect the Planting method for better yield in coconut Reasons such as decreasing yields, wanted to use his experience to lack of commercial returns and change this situation. He started in problems like eriophid mite and black his own land which is drought prone headed caterpillar menace are forcing and unfertile, to demonstrate coconut farmers to grow other crops cropping pattern in dryland in place of the trees.“Not only for horticulture. In order to increase the coconuts but also for any other crop number of coconut palms per unit the ability to maximise the yield is area and to get maximum income, Mr. important for a farmer and Mr. Renukarya adopted a new system of Renukarya has been able to prove planting called pentagonal and paired that by changing the planting system of planting which is his own method, yield can be increased in innovation. Conventionally, coconut coconut,” says Dr. T.N. Devaraja, seedlings are planted in straight lines Programme Coordinator, Taralabalu in fields. Further, if they are to be KVK, Davanagere. planted on field borders single Mr. M.K. Renukarya from U. seedlings are planted at closer or Kallahalli village in Davangere wider distances. district, who worked as farm manager In pentagonal type of planting, in University of Agricultural Sciences seedlings are placed in such a way (UAS), Bengaluru, for three decades, that one plant is planted in centre and december 2015 land bank journal 75 four plants at a distance of eight feet may be required. Though initial cost in all four directions. A pit for planting of planting using labour might be a bit is dug and inputs like water, manure more, by this method each tree has etc are placed into it along with the been found to yield an average of 80 seedlings. Organic wastes are also nuts a year.“This is significantly high dumped into the pits which act as because in the conventional planting vermicomposting sites. The whole trees in the region yield anywhere area is covered with fallen coconut between 55- 65 nuts a year depending fronds and other organic waste. In on the region,” says Mr. Renukarya. paired system, the inter-space The cultivation cost is considerably between the seedlings is reduced to reduced since once planted and six feet. Two plants are planted in a manure applied the trees do not need three cubic metre pit filled with maintenance except watering. Paired coconut husk, compost, red earth and pentagonal planting of coconut tank silt etc. The entire pit is covered has almost doubled the palm with fallen coconut fronds and other population when compared to available organic waste of farm. In conventional method of coconut between the coconut seedlings planting,” he says. In addition to arecanuts are also planted. Along coconut, the farmer has dug five farm with this, fodder grass and legumes ponds for growing fishes. The ponds are also planted on the field bunds for also help in groundwater recharge for fodder for cattle. Two trenches are not only in his farm but also dug about eight feet away from the pit surrounding farmers’ fields. which act as catchment for rainwater. Meticulous farm planning is the basic “Paired and pentagonal planting of tool to maximize farm income coconut accommodates more according to him. The farmer has number of coconut palms. In normal received the best farmer award by system 56 seedlings are required for University of Agricultural Sciences, an acre. In this system 70 seedlings Bengaluru. Integrated management of grapevine thrips Grapevine thrips is the most down. The attack on flower stalks destructive pest in India. It also result in flower shedding. The feeding damages other crops such as jamun, on the developing berries results in guava, mango, cashew nut, rose, etc. scab formation. It is active during March-May and There are two other species of September-October.Adults and thrips such as Scirtothrips dorsalis nymphs feed by rasping on the and Thripshawaiiensis which ventral side of the leaves and flowers’ exclusively attack blossoms and stalk and suck the oozing sap. As a developing berries causing scarred result of their intensive feeding, fruits resulting poor quality and low leaves develop silvery white scorches price in the market. The life cycle of and gradually get deformed and fall this thrips is completed in 11 to 25 december 2015 land bank journal 76 days according to weather conditions coccinellid beetles. and there are five to eight — Raise eco-feast crops viz. generations in a year. They undergo castor, mustard, sunflower, hibernations as pupae deep into the marigold and coriander around the soil surface during winter. Young crop to conserve and encourage nymphs appear reddish and adults entomophagous insects. are yellowish brown. They reproduce — Spray beauveria bassiana at 5 both in sexual and parthenogenetic ml or 5 g/lit under humid climatic ways. conditions. Integrated Management — Apply 500 ml of malathion or — Varieties of grapevine with thick 1.5 kg of carbaryl 50 WP in 500 litres and hairy leaves are known to be of water per 100 vines. tolerant to thrips attack. — Spray methyl demeton 25 EC at — Collect and destroy damaged 2 ml/ lit, dimethoate 30 EC at 2 ml / leaves, fruits and flower. lit, monocrotophos 36WSC at — Install 10-13 blue / yellow 1.25ml/lit, quinalphos 25EC at sticky coloured sheets traps/ha. 1ml/lit, or ethion 50EC at 1ml/lit — Grow cowpea around the field bunds to conserve predatory Handy cycle weeder for small farmers Weeds are the biggest problem in demonstrated the use of this device crop production. Nearly 30 to 50% of for weeding different crops. After the yield loss is due to weeds. These training programme, selected unwanted plants remove nearly 25 to farmers were given the weeder for use 60% of nutrients from the soil in their own farms under our making them unavailable for plants technical guidance. “We suggested to and also act as host for several pests farmers that it can be used for all the and infestations. Weed management crops like groundnut, sunflower, is a big problem mainly because of maize and vegetables with the labour shortage. Agricultural activity spacing of 30-40 cm between the in India is largely labour based and lines and 15-20 cm within the shortage of manual labour has a plants,” says Dr. T.N. Devaraja, direct impact on crop production. Programme Coordinator. Tarabalu Krishi Vigyan Kendra in As a trial, the weeding technology Davanagere recently introduced a was demonstrated in a vegetable field cycle weeder for farmers in the of a farmer, followed by frequent region, priced at an affordable rate, visits by the KVK team to access and and easy to operate for removing record data on weed menace, time w e e d s , a c c o r d i n g t o M r . taken by the device for weeding, and B.O.Mallikarjuna, specialist at the yield. Farmers using this device institute. “In the training, we had expressed their satisfaction that the december 2015 land bank journal 77 weeder was well suited for those the hiring charges per day are quite whose land holding was two acres or heavy and may not be feasible for a less. Though it can be used for any small farmer. For such people this crop it is best suited for vegetables type of machine may be useful,” says since the space between plants is Mr. Mallikarjuna. more for operating this device. The Mr. Renukarya, a retired weeder can penetrate the soil to a agriculture scientist who has been depth of 2-2.5 cm. It can be used for using this device says: “I have been weeding 1 to 1.5 acre in a day and using this machine and find it can be either operated by a single beneficial as I don’t need to depend person or/and also attached to on external man power for operating bullocks. It is ideal to use this device it. I think this is the best technology after 15-20 days of planting the crops for future agriculture when land in the main field. holdings are reducing in size. “The Previously manual labourers were population is increasing day by day used for weeding work. The main but not the land and there will be problem with labourers is that many more fragmented lands in future and of them were inefficient and this type of device will be very demanded high wages during suitable for small farmers.”The planting, weeding or harvesting time. machine operates efficiently when “Unlike foreign countries, where the field is irrigated for the device to hundreds of acres are available pull out the weeds. Farmers should without any borders, in India it is the note that the field must not be hard other way around. Here 80 percent of since it would be difficult to use the our farmers are small and marginal d e v i c e . T a r a l a b a l u K V K i s growers with small land holdings popularizing this technology in and divided by bunds on all four sides around their region. The weeders are making it difficult to use big priced at `2,000 to `2,500 a piece. machines for any operations. Also Managing fruit fly in Mango The mango fruit fly is believed to like ovipositor and lays eggs. The be the single largest crop damager in legless yellowish maggots after India. It accounts for about 27% of hatching bore and feed on fruit pulp harvesting loss. The flies attack semi and on maturity come out of the ripe and mature fruits during the fruit, drop on the ground and pupate months of April and May. Other deep under the soil. Thus the fruits like guava, citrus, plum, maggots destroy the pulp making it peach, sapota, loquot, etc are also foul smelling and discoloured. susceptible to this pest attack. Infested fruits develop brown rotten Damage is caused both by adults and patches on them and fall to the maggots. Adult female punctures the ground ultimately. rind of near ripe fruits with its needle december 2015 land bank journal 78 Management (1ml/lit) and 0.05 per cent malathion — Collect the fallen infested fruits 50EC (1ml/lit) taken in 250 ml and dispose them by dumping and capacity wide mouthed bottles fitted burying in 60 cm deep pits. with hanging devices. — Plough the interspaces in the — Another poison bait may be orchard during summer to expose fly prepared by adding 100g of jaggery puparia to kill them under hot sun and 2ml of decamethrin 2.8EC in 1 lit rays. of water and sprayed on the tree — Timely harvest of mature fruits trunks at weekly interval. The bait should be done and the fruits may be could be sprayed on the nearby treated with hot water for one hour at hedges and vegetation. 48 degree celcius. — Spray deltamethrin 0.025% — Install methyl eugenol traps at thrice at least 15 days interval 6 nos./acre. commencing 45 days after fruit set. — Adopt male annihilation — Spraying of 0.03% dimethoate technique of using bait traps with up to two weeks period to picking the 100 ml of 0.1per cent methyl eugenol fruits is also effective. Thuthukudi farmers grow beans to overcome water shortage Thuthukudi district in Tamil crops. Some two years back, the Nadu is largely rainfed. Cotton, percentage of farmers growing sunflower, maize, pulses, millets are vegetables had practically dropped to some of the crops grown in the nil because of water scarcity. SCAD district which has predominantly (social change and development) black soil. Farmers are heavily KVK selected 10 villages in dependent on the monsoon for their Vilathikulam block and decided to crops. Prolonged drought, hot and grow Dolichos bean variety (called humid conditions, high evaporation, Avarakkai in Tamil) on a trial basis in irregular monsoon are some of the five farmer’s fields to assess the yield chronic problems plaguing the potential. The results obtained were cultivators in the region for a long quite encouraging and it was decided time. Farmers with borewells and to extend the cultivation to 10 more open wells seldom opt to grow crops farmers’ fields. “The variety Dolichos like brinjal, chilli, tomato, banana CO 14 is capable of producing 8-10 etc. Since vegetable crops are highly tonnes of green pod per hectare and sensitive to climate and temperature the crop fetches a maximum of `38 a change. By the time they are kg and minimum of `22 a kg from the harvested and packed to the market local vilathikulam market. Farmers they shrivel because of the heat. are able to earn more than `85,000 to Because of these problems, `90,000 as net income in hardly 100 coupled with low level in the ground days. After seeing this, more than water table, cereals, minor millets 100 farmers have approached us for and fodder crops are the preferred seeds,” says Dr. G Alagukannan december 2015 land bank journal 79 P r o g r a m m e c o o r d i n a t o r , day after sowing and it continues up Vagaikulam, Thuthukudi. to 80 days. About 30ml of effective Plans are on to bring in 150-170 microorganism (EM) in one litre acres under this bean cultivation. solution is to be sprayed on 45th,60th Five farmers have been identified to and 75th day to boost the flower and produce seeds to meet the demand of fruit production. In addition to this the farmers.“This bean variety needs three gm of “vegetable special” a crop to be popularised in a larger way in booster was also suggested to be areas where the farmers are having sprayed after diluting it in one litre issues like less water and adverse on 40th, 55th and 70th days. To control condition in the ensuing season,” he the fruit borer and jassids a spray says.A complete package of practices with 20ml of neem oil in one litre with is provided from the kendra. Farmers soap solution was resorted. The crop were advised to sow seeds at comes to harvest on the 52nd day after 45x30cm spacing after treating it sowing and one can harvest 11 times with Rhizobium solution. from a single crop, according to th The first flowering was on the 38 Dr.Alagukannan. Seedless Cucumber hybrids in polyhouses The Kerala Agricultural University significant as it offers increased (KAU) has developed a seedless a v a i l a b i l i t y o f i n d i g e n o u s l y hybrid cucumber that is ideal for developed seed at affordable rates to polyhouse cultivation. This is the farmers, paving way for a fillip in poly first such hybrid developed in South house Cucumber cultivation. India by a public sector research KAU Cucumber Hybrid-1(KPCH- team. Polyhouse cultivation requires 1) is found to be significantly specific cultivars in each crop and superior to commercial hybrids with farmers presently depend on the respect to fruit number, yield and seed produced in countries like earliness. The Research extension Korea, Thailand which are imported advisory council of the University and marketed by multinational has recommended this hybrid for companies in various names. testing across polyhouse in all The Government of Kerala has districts. The research team which accorded high priority to polyhouse developed this hybrid had earlier cultivation by providing subsidy developed seedless hybrids of yellow schemes for setting them up in all the and red watermelon, for the first time 1,000 odd panchayats in the state. in the country. Farmers depend on corporate sector Cucumber is an ideal vegetable for hybrid seeds and the price of variety for polyhouse cultivation as cucumber hybrid seed ranges from the fruit is harvested at an immature `5-7 per seed. Thus development of stage and vertical height of the this hybrid by the University is polyhouse structure can be exploited december 2015 land bank journal 80 for producing more fruiting nodes. prevents the entry of all insects Normal varieties bear both male and including honey bees. Hence only female flowers and require specific types which produce fruits pollination for fruit development. without pollination can be cultivated Honey bees act as the pollinator. inside polyhouses. However protected structure Effectiveness of sex pheromones in IPM Sex pheromones are generally systems. In the case of female- produced by female insects to attract produced sex pheromones only males of the same species for mating. males are trapped. Hence, any In Integrated pest management attempt to suppress the population (IPM), pheromones are used in by trapping males would require a different ways such as monitoring sufficient number of trapped males through trap catch, killing through so that nearly all females would go mass trapping, mating disruption unmated. and attracticide (lure and kill) Theoretical considerations of methods. Pheromone traps in stored mass-trapping males take into insect management can be used to account the density of males in the detect both the presence and the population and the potential number density of pests. They are useful to of matings a male is able to secure in define areas of pest infestation, its lifetime. If a male can mate with particularly where the overall ten females in a lifetime then up to distribution and life cycle are poorly 90% of the male population can be understood. trapped without affecting the Their purpose is to achieve a more number of mated females as well as accurate control and to limit the the subsequent larval generation. usage of insecticides to only when The attracticide (or lure and kill) strictly necessary. Pheromone traps concept-based method involves are generally effective when pest using a pheromone to lure insects to numbers are very low and so they a specific point source or an area can be used qualitatively to provide whereby they contact a toxicant an early warning of pest incidence. which causes a rapid kill or To successfully capture attracted contamination with some kind of pest insects, a trap has to be escape- pathogen. In the protection of stored proof, which can be achieved by a products there are many promising sticky surface to which the trapped results on the use of the attracticide insects become irreversibly attached concept in flour mills and or by some kind of funnel or pitfall confectionary industries. Nendran Banana and Rose Onion got GI tag Kerala’s sumptuous Nendran Rose Onion have got geographical Banana and Karnataka’s Bangalore indication (GI Tag) registrations from december 2015 land bank journal 81 the Geographical Indications characteristic of the goods is Registry, Chennai. Chengazhikodan essentially attributable to its Nendran Banana, also known geographical origin. Chinnaraja G. Chengazhikode Banana, is among Naidu, Assistant Registrar of the the most popular traditional fruits Geographical Indications Registry, cultivated in Thrissur district, said GI helps a community of Kerala. This variety of Nendran producers to differentiate their B a n a n a i s f a m e d f o r i t s products from competing products characteristic taste, bunch shape in the market and build goodwill and fruit colour. The mature fruits around their products, which often are pale yellow and, on ripening, turn fetches a premium price. golden yellow with red patches. As per the Act, any association of Bunches of Chengalikodan are persons or producers or any particularly used as ‘Kazhchakula’ organization established by or under (auspicious sighting) to be offered in any law for the time being in force temples and also as gift to relatives representing the interest of the and friends, particularly during the producers of concerned goods, can Onam season. The crop is mainly apply in writing to the Registrar of GI. cultivated in organic mode and the Among GI tag recipients are the Naga crop duration is 13-14 months. The Tree Tomato, Arunachal Orange, Chengalikodan Banana Growers’ Sikkim Large Cardamom, Mizo Association, Erumapetty, was given Chilli, Assam Karbi Anglong Ginger, the registration. The Bangalore Rose Tripura Queen Pineapple, Tezpur Onion grown in Bangalore and its Litchi, Khasi Mandarin and Kachai surrounding areas is famous for its Lemon, handicraft items such as high pungency compared to other Khurja Pottery, Banaras Gulabi varieties. Meenakari Craft, Varanasi Wooden Geographical indication (GI) Lacquer Wear and Toys and foods refers to any indication that such as Ratlami Sev of Madhya identifies the goods as originating Pradesh, Joynagarer Moa from West from a particular place, where a Bengal and Rajasthan’s Makrana given quality, reputation or other Marble. Small growers join forces to build their own warehouses Germalam in Erode district, Tamil grown extensively apart from ragi, Nadu, is covered by thick reserve lablab, tapioca, black gram, horse forests. Agriculture and livestock are gram and french beans as minor the key livelihood for the people crops. there. The land holding of each “The small farmers used to borrow farmer is about one to three acres of from moneylenders at 3-5 per cent d r y l a n d w h e r e c u l t i v a t i o n interest per month for purchasing predominantly depends on the seeds and fertilizers and the monsoon. Maize is the main crop moneylenders usually arrived at the december 2015 land bank journal 82 farm during harvesting season — emerged was the construction of and took away from the farmer a community warehouses in their own volume of produce equal to the loan areas. Accordingly they approached principal and interest.“Being Myrada institute in their region to indebted, farmers did not have much see whether this was possible. Based c o n t r o l o v e r t h e r a t e s t h e on the area of maize grown and the moneylenders fixed. Besides, the number of farmers who would moneylenders used their own faulty directly benefit from this project, it weighing scales,” says Dr. P. was decided that two warehouses Alagesan, Programme Coordinator, could be constructed in two villages. Myrada (Mysore Resettlement and Both the warehouses would be D e v e l o p m e n t A g e n c y ) , managed by the self-help groups in Gobichettipalayam, Tamil Nadu. the respective villages. Since it was Farmers therefore lost out both on community managed and maize rates as well as the weight of their being a seasonal crop, both the produce. Since they had no idea of warehouses did not require year- the market availability or the round management.“The model cut prevailing rate for maize they did not labour costs as farmers themselves have much choice. Some of them brought in their produce from their tried to market the produce farms to the warehouse. No full time themselves but the high cost staff was required. Members from i n c u r r e d o n t r a n s p o r t a t i o n t h e l o c a l s e l f - h e l p g r o u p s (especially, since they had small volunteered to work for free. volumes each) forced them to sell the Therefore the annual maintenance maize as soon as it was harvested. costs for the warehouse was as low And the market was a buyers’ arena. a s ` 1 , 0 0 0 — m a i n l y f o r Traders offered low prices for the whitewashing and cleaning and this produce taking advantage of the fact was paid out of the warehouse that the sellers were not locals and account,” explains Dr. Alagesan. had come from faraway places. The warehouses charge different Farmers were often forced to agree to rentals for those who have the buyers’ rates as they wanted to go contributed to its construction — back home early and there were chiefly self-help groups and costs involved for storing their maize outsiders. The groups pay a rent of in warehouses. `1 per bag stored per month. Other Stored grain also lost moisture individuals pay `1.50 per bag per and its quality deteriorated. There month. No additional charges are was not enough place in Germalam levied as the transportation, loading to store all the maize. A decade back and unloading costs from the farm to when this problem was being warehouse are borne by producers d i s c u s s e d a m o n g t h e l o c a l themselves. After deducting all the community one of the ideas that expenditures, the warehouse december 2015 land bank journal 83 committee bank account currently proved their worth and the has a balance of about `30,000. government is rapidly replicating the Based on the success of these two programme. Apart from the three warehouses the government has also a l r e a d y s u p p o r t e d b y t h e come forward to support setting up of government, six more are being build two more warehouses with active in the Kadambur and Thalavady hills support from Myrada. Presently the in collaboration with the District four warehouses constructed by the Rural Development Agency (DRDA). Myrada Germalam Project have Smart technologies for water management in crops Irrigation projects have always resources engaged for monitoring,” been part of the top agenda in any says Mr. Bhaskar Reddy. All the government policy. “Irrigation farmer needs to do is to buy and projects are like bank ATMs. One install one or two sensors in his field knows how much water is being and irrigation outlets in the fields for released from reservoirs but does not measuring water flow, soil moisture, know how each drop is being temperature and relative humidity distributed or utilised. The interest in the atmosphere. Once every two to shown in creating infrastructure is three hours information on the not shown in management of water above is sent to the farmer’s mobile resources. Without monitoring water as a message. use, its management is not As part of a project to popularise it possible,” says Dr. N. Sai Bhaskar and bring awareness among farmers Reddy, Coordinator, ClimaAdapt Walamtari set up sensors for Project, Walamtari, Andhra Pradesh. measuring water use in paddy crops Walamtari is a government in the field of a beneficiary farmer organisation in Hyderabad serving Mr. K. Prabhakar from Kondrapole farmers of both Telangana and village, Miryalaguda, Nalgonda Andhra Pradesh States. Presently District, Telangana. Mr. Prabhakar, they are working on low cost sensors had been cultivating the paddy crop for water use efficiency, soil moisture for the last 30 years in about two and environmental parameters, hectares. He was utilising water through a project called Clima without any measurement.“I used to Adapt, supported by the Norwegian worry when there was no water Government. “Unlike in olden days, standing in the field. I was given today several smart technologies like training and also taken for an sensors are available to monitor exposure visit on alternate wetting water resources distribution and and drying (AWD) method in paddy utilisation. The cost of monitoring by Walamtari. Through them I learnt water usage with the aid of these that there was no need to keep the technologies is more reliable and paddy field always flooded with convenient as compared to human water. The water level can be allowed december 2015 land bank journal 84 to even recede 15 cm below the asked to speak to other farmers in his surface. This will not affect crop region about his experience and yield. There is a saving of 30 to 40 % hearing him, farmers growing chillies water by this method. “And also the and cotton have come forward to try crop production is high as the roots and use this technique. penetrate deeper with receding water Some farmers expressed that they and there are more tillers and were also willing to buy these sensors increase in paddy yield. The crop also on their own for irrigation stands well. Although all sensors are management. Sensors are priced at installed in the field openly, none of `2,000 to `3,000. “Being a the sensors was damaged or lost due Government organisation, it does not to theft” he says. market sensors commercially. At After setting up the sensors in his present a farmer cannot buy directly field, Mr. Prabhakar is able to get from us, but we can guide them to information every three hours on his the right place from where they can mobile about the water flow, air purchase,” says Mr. Sai. Though this temperature, soil moisture etc on his is a new concept in an area that mobile phone. With these systems in already faces several problems, the place he is able to schedule his need of the hour is for farmers across cropping pattern as per the the country to become aware about requirement. Mr. Prabhakar was this concept and try them personally. Management practices for mango malformation Mango malformation is a fungal leaves with a bunch like appearance disease. It was reported for the first on the shoot apex. Seedling remains time from Darbhanga, Bihar. The stunted and die while those getting disease is more in northwest than in infected later resume normal growth. the northeast and South India. Floral malformation (FM) is the Malformation is one of the most malformation of panicles. The important problems of mango and a severity of malformation may vary on serious threat. This disorder is the same shoot from light to medium widespread in flowers and vegetative or heavy malformation of panicles. shoots. Broadly three distinct types Heavily malformed panicles are of symptoms are there. These are compact and overcrowded due to vegetative malformation and floral larger flowers. They continue to grow malformation. Later, these were and remain as black masses of dry grouped under two broad categories tissue during summer but some of that is vegetative and floral them continue to grow till the next malformation. season. Vegetative Malformation (VM) is Management more commonly found on young — Diseased plants should be seedlings. The seedlings produce destroyed. Use disease free planting small shootlets bearing small scaly material. december 2015 land bank journal 85 — Scion sticks from infected trees flowering. should not be used. — Spraying of Planofix (200 ppm) — As soon as the disease appears, during the first week of October the affected terminals along with the followed by deblossoming at bud basal 15-20 cm healthy portion burst stage is recommended. should be removed or pruned and A single foliar application of 1,000 burnt. ppm cobalt sulphate prior to flower — If more than 25% plant is bud differentiation successfully affected, de-blossoming at bud burst reduce the floral malformation. stage should be done to delay the ICRISAT to step up focus on ‘smart crops’ millets As millets making a slow but a large number of small and marginal steady comeback, Icrisat has said it farmers. “They are rich in nutrition would have a special focus on and consume less water. These millets, which it considers ‘smart water- efficient crops are relevant for crops’, considered the life-line of India. They help farmers face the small and marginal farmers in semi- changes in climate,” he added. arid areas. Headquartered at Icrisat has gathered about 6,000 Patancheru, the International Crops finger millet germplasm accessions Research Institute for Semi-Arid from 24 countries for conservation Tropics (ICRISAT) has said sorghum, and research and development. He pearl and finger millets are among said his immediate priorities as the the mandate crops. Icrisat’s head of the institute was to focus on Director-General David Bergvinson demand-driven innovation and to has said that millets played a crucial make agriculture viable for farmers. role for countries such as India, with Water farms with a tap on your phone Vijay Bhaskar Reddy Dinnepu company launched its first product, spent most of his childhood on his Kisanraja. The box-shaped device family's field in rural Andhra sits next to the motor. With it, phones Pradesh, sitting in front of the become remote controls for irrigation irrigation motor pump, devotedly pumps. All it needs is power supply monitoring it. On days when he was and a working sim card. Through distracted by friends and wandered Interactive Voice Response (IVR) in off, the motor would crash due to the local language, the device voltage fluctuations. After a 12-year informs the farmer when the power is stint at technology corporations like back on and kick-starts the motor if Intel and Cisco, Dinnepu, an IIT- the farmer chooses to. The device is Madras graduate, launched Vinfinet designed for an Indian setting - Technologies Ltd to provide where power supply is unscheduled, automated irrigation solutions to and farmers are housed far away Indian farmers. In 2012, the from their fields. Advanced models december 2015 land bank journal 86 also alert the farmer when the water like KesuPatil, owner of 2.5 acres of level goes down in the borewell or farmland in Pura village of Mysore when there is an attempt to forcibly district, who lives nearly 20 kms remove the device. Investors who away from his farm, the device has back ventures focused on the agri- proven to be more than just useful. sector are of the view that startups "Earlier, I had to keep a man at the enabling efficiency in agriculture farm just to monitor the motor. With through technology will gain this instrument, I saved that money attention. and got return on the investment in a "The key is good margins and few months," said Patil. For Dinnepu, differentiation in the product / who estimates the number of sourcing strategy," said Srikrishna irrigation pumps in use on Indian Ramamoorthy, Partner at Unitus farms to be in the number of two Seed Fund India, which specialises crore, the challenge now is to ensure in impact investing. At present some that more farmers start using his 15,000 farmers use the device device. developed by Vinfinet. For farmers Success saga in inland farming Farmers in the country usually wealth of the State, Saseendran, a follow the agricultural practices only national award winner in inland after successful practices and fisheries in 2013, has taken the bold inventions set by scientists of initiative to breed and propagate the government and public sector rare fish varieties. He also bagged the research institutes and Universities. state award for the best inland fish K. Saseendran, a progressive farmer farmer in 2011. “When I first set up at Thekkumthara in Kerala's the hatchery, some tribal fishermen Wayanad district has distinguished brought my notice the dangerous himself by setting a model in extinction of various species of fish conserving the endemic and endemic to Wayanad, especially of endangered fish varieties of the the River – varieties. They claimed district to be emulated even by the there were nearly 62 species till a government institutes. decade ago, but the number has now Saseendran set up the first, and shrunk alarmingly due to the only, hatchery in the district in 2011 unethical application of pesticides on to provide fingerlings of edible and banana and ginger crops, the two ornamental fish to other farmers. major cash crops in Wayanad”, he Ornamental fisheries has become a says. lucrative venture for farmers in the At first he was able to collect the recent times. While the Fisheries breeding stock of only one of the department and research institutes species, locally called Cherumeen keep away from efforts to conserve (Channamarulius), three years ago. the endemic and endangered fish Chrumeen grows up to 7 kg a year. december 2015 land bank journal 87 He could produce nearly 2,000 2002. In that year he started fish fingerlings in a year from the original farming by depositing nearly 150 stock, and started selling to the fingerlings of Cyprinus carp (locally farmers. He also collected a breeding called Chembally), Labeorohita stock of 200 fingerlings of Varaal (rohu), and the common grass carp ( C h a n n a s t r i a t u s ) , a n o t h e r (Pulmeen)in a small pond made on endangered species of fish. Inspired one and a half cent of land. from the success of Mr. Saseendran, However he failed in his first stint, the Fisheries department in primarily due to lack of technical Wayanad is now planing to set up an know-how. But he did not give up. aqua park of endemic and The very next year he deposited endangered fish varieties of the nearly 200 fingerlings of the same district, at Pookode Lake at a cost of varieties of fish, this time with the `20 lakh. A major issue to faced by help and direction provided by the the fish farmers of the district is the fisheries department officials. He high cost of fish-feed, which takes up could harvest nearly 3 quintals of nearly 60 percent of the production fish — that was his first taste of cost in fish farming, according to success. Gradually he started to B.K. Sudheerkishan, Assistant expand, and now he rears seven D i r e c t o r , K e r a l a F i s h e r i e s speices of edible and 14 species of Department. Saseendran has ornamental fishes in 16 ponds successfully developed a low-cost spread over his five – acres of land. “I feed made from locally available harvested nearly four tons of edible materials (rice, wheat, millet and fishes and sold hundreds of Kassavaetc) to help reduce the ornamental fishes last year. production cost in fish farming. Marketing is not an issue, as the The Aquaculture Development demand for the fresh water fish is Authority of India has selected four very huge in the hill district of farmers for a trial plot to cultivate Wayanad”, affirms Saseendran. Genetically Improved Farm Tilapia Farmers in Wayanad are taking to (GIFT) project and Mr. Saseendran is inland fish farming for better income, o n e a m o n g t h e m , M r . inspired by the increasing number of S u d h e e r k i s h a n , s a y s . M r success stories in the sector. When Saseendran also runs a free farm the Department started 'Matsya school titled 'Shyam farm school' Samrudhi' project in 2009 there were near his house to impart his only 400 farmers to pick up the knowledge on aqua culture to other venture. But now there are around farmers, especially novices to the 4000 farmers ready to try their luck sector. Saseendran entered in to the in fish farming. The farming area also venture of inland fish farming when has gone up, from 20 to 190 t h e K e r a l a s t a t e F i s h e r i e s hectares,” Mr. Sudheerkishan Department had launched the added. People's Fish Culture Programme in december 2015 land bank journal 88 Trap crops in insect pest management Trap crops are the plant stands Additionally, the increasing sector that are grown to attract insects or of organic farming also could exploit other organisms to protect target this strategy of pest control. Yet crops from pest attack. Protection another function of trap crop is their may be achieved either by preventing use of attracting natural enemies of the pests from reaching the crop or pest insects to the fields and by concentrating them in certain concentrating them there to enhance part of the field where they can naturally occurring biological economically be destroyed. The control. The essential features of the principle of trap cropping rests on trap cropping are that the trap crop the fact that virtually all pests show a must be attractive to the pest then distinct preference to certain crop the main crop, it should occupy stage. Manipulation of stand in time small area as far as possible and it and space so that attractive host should be established early or later plants are offered at critical time in or along with the main crop. pests and the crop phenology leads The important trap crops to the concentration of the pests at commonly used in pest management the desired site, the crop. included, bhendi/okra in cotton to Farmers are being motivated to trap bollworms at the ratio of 1:10 utilize trap cropping because of the and marigold at the border of the difficulties in cropping with the pest field. Sesamum is commonly being situations in other ways. Some times used as trap crop to attract the cost of chemical pesticides and Diamondback moth in both cabbage the number of treatments required is and cauliflower. Two rows of so high that more economical ways sesamum for every 25 rows of have to be developed, additionally, cabbage or cauliflower can be the pests have often evolved planted to trap the pest. In resistance to commonly used groundnut, castor or sunflower can pesticides, which requires some be used to attract leaf eating alternative control strategies. caterpillar on the border of the field. Further, motivations to use trap In tomato marigold or cucumber is cropping are economical and commonly used as trap crop for every environmental benefits are often 15 rows of the main crop to attract associated with this strategy. tomato fruit borer. In case of field Besides, its potential role in beans, chrysanthamum acts as a improving the environmental trap crop against leaf minor. s o u n d n e s s , t r a p c r o p p i n g Marigold is a potential trap crop in techniques may have special potato and rice against nematodes p r e f e r e n c e o f c o n v e n t i o n a l and snails, respectively. To trap corn agriculture to sustainable farming in stalk borer in maize sorghum has developing countries. been exploited as trap crop. Bihar december 2015 land bank journal 89 hairy caterpillar in cowpea can be a useful strategy in the management trapped by planting Gingelly. of several pests in various cropping Trap cropping has indicated a systems. It offers significant great benefit in terms of economic economic and environmental returns on an average of 10-30 per benefits and it can successfully cent increase in net profits mainly integrated with cultural, biological resulting from reduced insecticide and chemical control methods. use and pest attack. Trap cropping is From ‘per acre’ to ‘per drop’ Prime Minister Narendra Modi, West Bengal or the all-India average said India needs a “second” Green of 3.6 tonnes. But the most efficient Revolution. But unlike the “first” one state in terms of land productivity that was centred in North-West India isn’t necessarily the most efficient — basically Punjab, Haryana and with regard to use of the other western Uttar Pradesh — the cradle important factor of production: of the next Green Revolution will water. have to be Eastern India, covering Punjab receives hardly 40 per cent east UP, Bihar, Jharkhand, Odisha, of the monsoon rainfall than West West Bengal and Assam. The main Bengal, Bihar or Odisha get and just reason for this — although Modi did over a quarter of Assam’s seasonal not specifically allude to it — is water average. Yet its farmers grow paddy. availability. And they do mainly by drawing The Commission for Agricultural groundwater, that too during the Costs and Prices (CACP), in its latest summer months when evaporation Price Policy for Kharif Crops report rates are high as well. “Rice as a crop for 2015-16, has shown that the is clearly not suited for Punjab. The average Punjab farmer uses as much state, in fact, used to traditionally as 5,337 litres of water from grow makka (maize) and sarson irrigation to produce one kg of rice. (mustard), which it no longer does. As opposed to this, the irrigation Today, given the increasing scarcity requirement is just 2,605 litres for of water and depleting of aquifers, every kg of rice in West Bengal. Paddy the focus has to be more crop not just farmers in Assam, Bihar and Odisha per acre of land, but also per drop of — besides Karnataka and Andhra water,” says Ashok Vishandas, Pradesh — are also more water- chairman, CACP. That would mean efficient relative to their Punjab and promoting rice cultivation more in Haryana counterparts. Much of states (Eastern India) where water is this has to do with policies that relatively abundant. encourage inefficiency in domestic T h e C A C P r e p o r t h a s resource use. Paddy yields in recommended metering of electricity Punjab, at 5.8 tonnes per hectare, and water used in irrigation may be higher than the 4.1 tonnes for alongside fixing of quantitative december 2015 land bank journal 90 ceilings on a per-hectare basis. appropriate market rates. This would F a r m e r s w h o u s e l e s s encourage farmers to go in for drip water/electricity than the prescribed irrigation, direct-seeded rice ceilings may be rewarded through production and other such practices, cash incentives equivalent to the leading to improved water use unused units valued at the efficiency in agriculture. Organic farming in mulberry for sustainable silk production Indiscriminate use of chemical pronounced in a few years. inputs is an indeterminable setback Therefore, promotion of organic to many industries associated with farming in sericulture is imperative agriculture. Similarly is the case in to sustain the industry and intensive sericulture. Mulberry, the food plant research on production of organic of silkworm is a perennial crop and silk is in the pipeline, he adds. once planted can be maintained for The institute has already years together without much effort. standardised application of a Production of quality mulberry number of organic inputs like leaves is mandatory for the farmyard manure, compost, sericulture farmers to ensure vermicompost, and green manures, healthy growth of silkworms and and developed special formulations better silk thread harvest. Therefore of bio-fertilizers and foliar sprays to the agronomical practices such as minimise the use of chemical application of fertilizers, weeding, fertilizers and to organically promote irrigation, plant protection measures s o i l h e a l t h i n m u l b e r r y at bimonthly intervals after each leaf g a r d e n s . O t h e r e c o - f r i e n d l y harvest are important for good and formulations like bionema and healthy leaf production. nemahari to control root knot Like in many crops, here too nematodes, chetak and navinya for chemical inputs are indiscriminately management of root rot disease and applied to gain short term results.“In spraying strong jets of water on general one acre of mulberry garden mulberry garden are found effective receives 1.5 metric tonne of fertilizers to manage sucking pests and are a n d 1 2 - 1 5 s p r a y s o f t o x i c advised for farmers. Similarly, insecticides annually which causes thermal weeding and black deleterious effects on the beneficial polythene mulching are also organisms and on silkworms,” says introduced to avoid application of Dr. V. Sivaprasad, Director, Central weedicides as well as to overcome the Sericulture Research and Training labour scarcity problem for manual Institute, Central Silk Board, weeding. Mysore. Though chemical farming According to Dr.Sivaprasad, initially yields good results, its about 12-15 metric tonnes of negative impact on leaf yield, quality sericulture waste, comprising a n d c o c o o n p r o d u c t i v i t y i s silkworm litter, unfed leftover december 2015 land bank journal 91 mulberry leaves, soft twigs, farm f o r e n h a n c i n g s o i l f e r t i l i t y weeds etc are obtained from a n a t u r a l l y . “ O r g a n i c f a r m e r s hectare of mulberry garden successfully harvest cocoons all annually, from which the plant through the season and their average nutrients such as nitrogen (280- cocoon production is greater than 80 300kg), phosphorous (90-100kg) kg per 100 disease free laying while and potash (150-200kg) as well as all the farmers who practice chemical essential micro nutrients can be based farming frequently met with generated when properly composted. crop failures and their productivity This is nutritionally much superior remains below 60kg.Tamil Nadu is than farmyard manure. The leading in silk production mainly t e c h n o l o g y f o r c o m p o s t i n g because of more adoption of organic sericulture waste is widely f a r m i n g p r a c t i c e s , e x p l a i n s popularised by the institute among N.Sakthivel, extension scientist, growers. Most of the farmers in Central silk board, Srivilliputtur. A different parts of the state technical bulletin titled “Organic s u p p l e m e n t t h e n u t r i e n t farming in mulberry: Recent break requirement of their mulberry through,” for the benefit of garden with the locally available s e r i c u l t u r e f a r m e r s , f i e l d organic inputs like farmyard functionaries and researchers has manures, composts, pressmud, been published by the board. The poultry manures, sheep and goat details of eco-friendly inputs of manures. sericulture and the packages of Sheep penning is also a tradition organic farming are available on the practised commonly in Tamil Nadu website csrtimys.res.in ‘Mulching’ to reduce water and chemical consumption After sowing turmeric around Mulching basically involves late-May/early-June, Avtar Singh application of a protective layer of covers his entire field with a 3-4 inch- material to the field soil surface just thick layer of paddy straw. “I do it so after sowing any crop. The material that my crop and the soil get proper could be organic and biodegradable shade from direct sunlight,” says this (paddy straw, sugarcane bark, dry farmer from Mullanpur in Mohali grass, trees leaves and even district of Punjab, while referring to a newspaper) or inorganic and non practice known as ‘mulching’. But biodegradable such as polythene wouldn’t having such a thick cover sheets. According to GS Butter, Head hinder germination? “On the of Agronomy at Punjab Agricultural contrary, germination is advanced by University (PAU) in Ludhiana, 10 days when compared to the non- mulching is very effective for pest mulched field, while giving me at management and disease control. least 10 per cent more yield,” claims “Weed seedlings cannot survive Avtar. under the mulch, which also means december 2015 land bank journal 92 not having to use chemical the fields after harvesting to clear the weedicides. Besides, mulching land for the next sowing. This reduces evaporation from the soil abundant straw can potentially be bed. This not only brings down the used by every farmer for mulching, frequency of irrigation, but also thereby addressing a major source of protects the soil from erosion,” he air pollution in the state. explains. Surjit Singh, a retired PAU Amarjit Singh from Char Ke village s c i e n t i s t , p o i n t s o u t t h a t in Jalandhar says that crops biodegradable mulches like dry normally require irrigation every paddy straw contain 50-70 per cent second day during the summer nutrients that slowly decompose in months. But with mulching, the the soil, enhancing its fertility even watering requirement is only after 7- without using fertilisers. “Mulching 10 days, depending on the crop. At creates an ideal environment for the Punjab government’s Centre of earthworms and other beneficial Excellence for Vegetables in organisms to grow on the soil. We Kartarpur near Jalandhar, set up have been recommended mulching under an Indo-Israel project, for turmeric, potatoes, sugarcane, scientists are showcasing vegetable melons and all types of vegetables,” cultivation using polythene sheets he adds. for mulching. “We use 30 micron Sadly though, only a few hundred sheets to cover the entire fields. Even out of Punjab’s 12 lakh-odd farmers the open space between the bed rows practice mulching. A state with the is covered in order to control weeds. country’s highest average fertilizer The vegetable seedlings are and pesticide usage, apart from 75 transplanted in the soil through per cent of its area under the ‘dark holes in the sheet that are a few zone’ signifying severe groundwater inches apart to maintain plant-to- scarcity, ought to be paying more plant distance,” says Daljeet Singh, attention to such environment- who heads the Centre. The sheets, he friendly practices. Punjab, moreover, informs, would cost Rs 12,000- produces an estimated 38 million 13,000 per acre and can be used in tonnes of straw annually, over half of two or more seasons. The polythene which is from paddy. While wheat mulch enhances crop yields by straw is used as cattle feed, there is keeping the soil warm in winters and no such use for paddy straw. About providing much-needed moisture to 80 per cent of the latter — some 16 the plant in the summer. million tonnes — is simply burnt in
december 2015 land bank journal