PLP 2016-17 Morbi District 1 EXECUTIVE SUMMARY
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PLP 2016-17 Morbi District EXECUTIVE SUMMARY a. Introduction Morbi district is primarily an agricultural district with cotton, cumin and wheat as the predominant crops. The other major crops cultivated are bajra, wheat, sesamam, groundnut, etc. The Potential Linked Credit Plan (PLP) for 2016-17 has been prepared aligning with the revised RBI guidelines on Priority Sector Lending. It estimates credit flow of ` 238703.00 lakh, of which, Crop Production sector has a major share of 54% at ` 129384.00 lakh. Term loan under agriculture is assessed at ` 56525.00 lakh accounting for about 30% of total agriculture and 24% of total Priority Sector. Under MSME, ` 39006.00 lakh has been assessed as potential forming 16% and balance at ` 13788.00 lakh has been estimated for other sectors like Exports, Education, Housing, etc. The activity-wise and block- wise assessment of potential is presented in Annexure I. The PLP projection for 2016-17 is higher by ` 11936.60 lakh when compared to the PLP for the year 2015-16 representing an increase of about 5%. Further, the PLP projection is higher by similar amount when compared to the ACP target for the year 2015-16. b. Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under: (i) Crop Production, Maintenance and Marketing Adoption of advanced technologies for the restoration of soil health, mechanisation, and cultivation of suitable remunerative crops, effective pest and disease management are essential to step up the agricultural production. Modern methods of cultivation like Fertigation for sugarcane, ‘precision farming’ for vegetables, ‘sprinkler irrigation’ for pulses etc need to be adopted for increasing production and productivity. Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes. (ii) Water Resources and Land Development As monsoon continues to be erratic, need for greater focus lies in water resource management. Farmers need to be incentivised to save water by adopting suitable cropping pattern on their farms. There is a need for conserving soil moisture security so that “more crop per drop” can be achieved. (iii) Farm Mechanisation Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. Banks may increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment. (iv) Plantation and Horticulture Horticulture crops could be encouraged as an alternative to the traditional cropping pattern in the district. Vegetables and Floriculture may be encouraged under modern methods like Green house/controlled conditions with bank credit. The Departments of Horticulture and Agriculture may popularise suitable horticulture crops for development in cultivable wastelands and saline/alkaline areas. (v) Animal husbandry Animal husbandry, particularly dairy is the most suitable subsidiary occupation. As dairy offers quick returns and near stable prices, banks may finance liberally ensuring tie-up arrangements with Dairy 1 PLP 2016-17 Morbi District farms/societies. Banks may also encourage farmers to take up calf rearing and fodder cultivation, as viable activities with financial assistance. (vi) MSME Banks should step up their lending to MSME sector including provision of adequate Working Capital assistance. Handloom Weavers and Handicrafts sectors in the district need to be adequately supported with bank credit. Banks may encourage artisan SHGs/JLGs from Handloom, Arts & crafts in these areas and also issue SCCs. c. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. NABARD’s initiative on Natural Resources Management with focus on Tribal development to give thrust to the identified sector/activity by enhancing term loan disbursements through a banking plan, implementation of area based scheme/s has been suggested as a coordinated effort of NABARD, Lead Bank, other banks, line departments and other important stake holders. ‘WADI” model is holistic in approach, addressing production, processing and marketing of produce and other livelihood needs. GoI has established the National Adaptation Fund on Climate Change (NAFCC) with a budget provision of ` 350 crores for the year 2015-16 and 2016-17. NABARD has been appointed as National Implementing Entity (NIE) responsible for implementation of adaptation projects under the Fund. To ensure effective price protection to the farmer, National Agricultural Market being proposed can be a solution backed by adequate storage facilities. d. Thrust areas for 2016-17 such as JLG/SHG financing, post–harvest infrastructure, food processing, Producer Organizations, Area Development Plans/Schemes, etc. as applicable to the district. e. Conclusion The major driver of private sector capital formation is investment credit. Immediate thrust is required to raise its share in the total agriculture credit. The document, has therefore, been prepared with emphasis on accelerating the pace of capital formation in agriculture and allied sectors. This goal can be achieved with the coordinated efforts of all the stakeholders. 2 PLP 2016-17 Morbi District Sector wise PLP Projections 2016-17 (` Lakh ) PLP Sr.No. Particulars Projections A Farm Credit (i) Crop Production, Maintenance and Marketing 129384.00 B Agri Term Loan (i) Agriculture and Allied Activities 34607.00 (ii) Agriculture Infrastructure 20701.00 (iii) Ancillary Activites 1217.00 Total Agri Term Loan 56525.00 Credit Potential for Agriculture (A+B) 185909.00 C Micro, Small and Medium Enterprises 39006.00 D Others (i) Export Credit 8000.00 (ii) Education 1050.00 (iii) Housing 3100.00 (iv) Renewable Energy 80.00 (v) Others 1250.00 (vi) Social Infrastructure involving bank credit 308.00 Total ‘Others’ 13788.00 Total Priority Sector (A to D) 238703.00 Others 6% MSME 16% Crop loan 54% Agri. Term loan 24% Crop loan Agri. Term loan MSME Others 3 PLP 2016-17 Morbi District SUMMARY OF SECTOR/SUB-SECTORWISE PROJECTIONS 2016-17 ` lakh Sr. PLP projections Particulars No for 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 129384.00 ii Water Resources 6941.00 iii Farm Mechanization 14094.00 iv Plantation & Horticulture (including sericulture) 2359.00 v Forestry & Waste Land Development 390.00 vi Animal Husbandry – Dairy 1145.00 vii Animal Husbandry - Poultry 487.00 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 86.00 ix Fisheries (Marine, Inland, Brackish water) 143.00 x Others – Bullock, Bullock cart, etc. 8962.00 Sub Total 34607.00 B Agriculture Infrastructure Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, 15245.00 i Cold storage units/Cold storage chains ii Land development, Soil conservation, watershed development 4065.00 Others (Tissue culture, Agri bio-technology, Seed Production, Bio 1391.00 iii pesticides/fertilizers, Vermin composting) Sub Total 20701.00 C Ancillary activities i Food and Agro processing 961.00 Others (Loans to Cooperative Societies of farmers for disposing of their produce, 256.00 ii Agri Clinics/Agri Business Centres, Loans to PACS/FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 1217.00 Total Agriculture 185909.00 II Micro, Small and Medium Enterprises i MSME – Working Capital 9001.00 ii MSME – Investment credit 30005.00 Total MSME 39006.00 III Export Credit 8000.00 IV Education 1050.00 V Housing 3100.00 VI Renewable Energy 80.00 Others (Loans to SHGs/JLGs, loans to distressed persons to prepay non- 1250.00 VII institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST VIII Social Infrastructure involving bank credit 308.00 Total Priority Sector 238703.00 4 PLP 2016-17 Morbi District Map of Morbi District Courtesy: www.mapsofindia.com 5 PLP 2016-17 Morbi District DISTRICT PROFILE 1. Profile of the District: Morbi is the nerve center of Saurashtra region having varied activities for livelihood. The district has been carved out of Morbi, Tankara, Maliya-Miyana and Wankaner talukas of Rajkot district, Halvad of Surendranagar district and parts of Jodiya taluka of Jamnagar district. It has tracts of fertile land, a patch of desert and sizeable coastline. The district has farming and industrial activities as major economic activities. Agriculture labour force is from Godhra and Dahod districts of the state. The district has an area of 4871.50 sq km with population of 10.08 lakhs. There are 407 villages in 5 talukas viz. Halvad, Maliya, Morbi, Tankara and Wankaner. Morbi town is the district headquarter. The town has come to be identified for its ceramic industry. There are more than 400 units manufacturing various types of ceramic tiles and sanitary ware. Morbi is also known for the Ajanta brand of clocks. It has become a global brand of wall-clocks. Orpat, another well-known name in electrical goods, has its origin in Morbi. Annual rainfall in Morbi was 852 mm during the year 2013-14 against an average annual rainfall of 673 mm during the years starting from 1983 to 2012. The geographical area reported in the district for land uitlisation is 481958 ha. The major crops grown in Kharif are Groundnut and Cotton and that in Rabi are Wheat and Cumin. During summer, Groundnut, Til and vegetables are the main crops. Chana, Garlic, Onion and Chilly are the other crops grown in the district. The district has a net sown area of 309369 ha against Gross Cropped Area of 329654 with cropping intensity of 107%. The net irrigated area (111661ha) constitute 36.06% of the net sown area (309369 ha). 2. Predominant activities in the district Agriculture, agro industries, agro processing, dairy and dairy product processing, agriculture implements, handicrafts, automobile ancillaries viz. casting, foundry and engine parts and service sector activities are various predominant activities in the district. 3. Major commercial and horticulture crops Groundnut, cotton, wheat and cumin are the major commercial crops and Mango, Chiku, Lemon, Ber, Pomegranate are the major horticulture crops grown in the district.