PLP 2016‐17 Kheda

Executive Summary A. Introduction Kheda district is primarily an agricultural district with tobacco and paddy as the predominant crops. The other major crops cultivated are wheat, bajara, maize, cotton and groundnuts. About 21.39 % of land holdings are with small and marginal farmers and the average size of the holdings is 1.20 Ha.

The Potential Linked Credit Plan (PLP) for 2016-17 has been prepared aligning with the revised RBI guidelines on Priority Sector Lending. It estimates credit flow of ₹. 219441.73 lakh, of which, Crop Production sector has a major share of 41.50% at ₹. 91065.00 lakh. Term loan under agriculture is assessed at ₹ 54999.73 lakh accounting for about 25.06% Under MSME, ₹. 56301.00 lakh has been assessed as potential forming 25.66% and balance at ₹ 17076.00 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 ₹. 19683.73 lakh when compared to the PLP for the year 2015-16 representing an increase of 9.85% Further, the PLP projection is higher by ₹ 19272.73 lakh when compared to the ACP target for the year 2015-16.

Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under:

B. Sector-wise comments on major sectors

1. Crop Production, Maintenance and Marketing Paddy is one of the key crop grown in the district in terms of its value. More than 90000 Ha land is under paddy cultivation. Scientific method of farming through SRI method holds very good promise in terms of yields improvement as well as savings in water, fertilizer and pesticides.

2. Farm Mechanisation In Kheda District, agriculture land size is larger than state average. For eg. Top 16.74% of farmers are holding 53.48% of the total agriculture land. Such skewed land distribution, good irrigation facilities, are right conditions for implementing high degree of farm mechanization. Higher investment capacity of large farmers will help in improving the productivity through highly mechanized farming operations.

3. Plantation and Horticulture Due to very fertile land, sufficient and good quality ground water and its proximity to big centers like Ahmedabad and Vadodara, horticulture sector is a pre dominant sector in Agriculture. More than 20% total cropped area is under horticulture production. To further support the Horticulture sector, there is an urgent need to establish backward linkage facilities like tissue culture labs, plants hardening centers and forward linkage like cold storages, pack houses etc.

4. Animal husbandry There is a need for strengthening the relationship between Banks, Cooperative Dairy sector and members of the dairy cooperatives, to enable members to obtain maximum bank finance to buy good quality animals, with repayment guarantee of cooperative dairies. Kheda contributes to more than 20% of poultry production in Gujarat State. However, bank finance in poultry sector is quite low due to non-availability of affordable insurance for poultry birds. Banks may create an internal pool of resources for risk mitigation purpose to finance poultry sector.

C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. Due to high level of awareness among the farmers and extension work done by Government departments as well as Anand Agriculture University, various centrally sponsored subsidy schemes have been well received in Kheda District. Share of Kheda District in Dairy Entrepreneurship Development Scheme, Rural Godown Scheme, AMIGS, Poultry Venture capital Fund scheme have

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PLP 2016‐17 Kheda been among highest for last many years. Efforts should be made to leverage on farmers clubs in Kheda District, efforts to make Producers Organisations to take up processing and value addition activities in Agriculture.

D. Thrust areas for 2016-17 The PLP document, besides discussing the development initiatives taken by GOI and the Government of Gujarat in the fields of agriculture, horticulture, and infrastructure lays emphasis on the following thrust areas and calls for collective participation of all stakeholders in the district to firm up the credit plan and to work towards achievement of targets for 2016-17.

i. Improvement in CD ratio of the district. ii. Coverage of all eligible farmers under KCC. iii. Promotion of Joint Liability Groups and ensuring credit linkage. iv. Capacity building of SHGs and upscaling of SHG linkage. v. Ensuring capital formation in agriculture by financing potential sectors mainly Farm Mechanisation, Rural godowns, Dairy and Food and Agro processing.

E. Area Based Scheme: The Area Based Scheme (ABS) on Agro and Food processing seeks to provide a focussed approach for various developmental activities, which can be taken up by the local people on a sustainable basis for income and employment generation through enhancing value chain of Agro and Food Processing in the district. The Plan uses the broad framework of ‘Project Approach’ for investment and production purposes under various identified components of value chain and the role of various institutions /agencies are dovetailed for the maximisation of benefits.

F. 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, better monitoring and review at BLBC / DCC meetings and effective implementation of Financial Inclusion plans.

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PLP 2016‐17 Kheda

Appendix A to Annexure I

Broad Sectorwise PLP Projections 2016‐17

(₹.lakhs) PLP Projections Sr. No. Particulars 2016‐17 AFarm Credit i Crop Production, Maintenance and Marketing 91065.00 ii Term Loan for agriculture and allied activities 35569.81 Sub Total 126634.81 B Agriculture Infrastructure 8429.92 C Ancillary activities 11000.00 I Credit Potential for Agriculture (A+B+C) 146064.73 II Micro, Small and Medium Enterprises 56301.00 III Export Credit 1680.00 IV Education 4200.00 V Housing 5264.00 VI Renewable Energy 24.00 VII Others 5816.00 VIII Social Infrastructure involving bank credit 92.00 Total Priority Sector (I to VIII) 219441.73

Social Housing Broad Sectorwise projections 2016‐17 Others Infrastructure 2.40% Renewable Energy 2.65% involving bank Education 0.01% credit 0.04% 1.91% Export Credi t Mi cro, Sma ll and 0.77% Medium Enterprises 25.66%

Credit Potential for Agriculture (A+B+C) Credit Potential for Micro, Small and Medium Enterprises Agriculture (A+B+C) Export Credit 66.56% Education Housing Renewable Energy Others Social Infrastructure involving bank credit

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PLP 2016‐17 Kheda

Appendix B to Annexure I

Summary of Sector / Sub‐sector wise PLP projections ‐ 2016‐17

(₹.lakhs) Sr. Particulars PLP Projections No. 2016-17 I Credit Potential for Agriculture AFarm Credit i Crop Production, Maintenance and Marketing 91065.00 ii Water Resources 5228.24 iii Farm Mechanisation 10278.53 iv Plantation and Horticulture (including sericulture) 6163.12 v Forestry and Waste Land Development 128.80 vi Animal Husbandry – Dairy 10400.00 vii Animal Husbandry – Poultry 960.00 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 55.12 ix Fisheries (Marine, Inland, Brackish water) 44.00 x Others – Bullock, Bullock cart, etc. 2312.00 Sub Total 126634.81 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market 4384.00 yards, Godowns, Silos, Cold storage units/ Cold storage chains) ii Land development, Soil conservation, Watershed 633.92 development iii Others (Tissue culture, Agri bio-technology, Seed 3412.00 production, Bio pesticides/ fertilizers, Vermin composting) Sub Total 8429.92 C Ancillary activities i Food and Agro processing 10520.00 ii Others (Loans to Cooperative Societies of farmers for 480.00 disposing of their produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 11000.00 Total Agriculture 146064.73 II Micro, Small and Medium Enterprises i MSME – Investment Credit 42896.00 ii MSME – Working Capital 13405.00 Total MSME 56301.00 III Export Credit 1680.00 IV Education 4200.00 V Housing 5264.00 VI Renewable Energy 24.00 VII Others (Loans to SHGs/ JLGs, loans to distressed 5816.00 persons to prepay non-institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) VIII Social Infrastructure involving bank credit 92.00 Total Priority Sector 219441.73

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PLP 2016‐17 Kheda

Map of the District

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PLP 2016‐17 Kheda

District Profile Predominant Economic activities in the district: Agriculture and animal husbandry are the predominant economic activities in the district. Within animal husbandry, dairy is the most important activity in the district. Poultry is another activity steadily growing in the district. Food processing is also fast growing activity witnessed during the last decade. Papad, powa, pickle and spices in the district have created assured export market in US, Africa, Europe and Australia. The district has the potential to put Gujarat on the world tourist map due to its famous Lord Krishna temple at Dakor. The non-farm activities of the district are confined to demand based and agro based / SSI units. Major food, commercial and plantation / horticultural crops in the district: Paddy, wheat, and bajra are the main food crops in the district. Tobacco, cotton, mustard, castor and fennel are the major commercial crops grown in the district. Mango, lemon, amla, banana and papaya are important plantation and horticultural crops grown. Cultivation of medicinal and aromatic crops has been steadily increasing. There exists very good potential for establishment of fruit processing industry. Recent changes in district rural economy The district is affected by degradation of land in ravine belt of Mahi river. The district has predominantly agrarian economy and the development of NFS is yet to take place. As such there is no big industry in Kheda district, but small and marginal industries are thriving on availability of skilled man power, raw material, good infrastructure and good connectivity with big cities like Ahmedabad and Vadodara. Due to ever increasing land costs and costs of agriculture labour and raw material, there is a shift from Nadiad block to Thasra and Kapadwanj block for labour intensive activities like poultry and dairy. Emerging Sectors in the district: Due to close proximity to Ahmedabad and Vadodara and district’s strategic location advantage, it holds the potential to become a big player in agro and food processing as well as poultry sector. An area based scheme for food processing has been presented in this document for this purpose. NABARD’s interventions in the district: NABARD interventions, direct or indirect have positively affected the district in multiple ways. However, one noteworthy intervention is increase in road density through RIDF support has helped Dairy cooperatives to achieve higher efficiency in milk collection and thereby lower the overheads. A Snapshot of district profile is as under.

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PLP 2016‐17 Kheda

District Profile of Kheda District as on 31-Mar-2015 Dis tr ict - Khe da State - GujaratDivis ion - 10 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 3959 Agro-climatic Zone Gujarat Plains, Hills Region – Central Gujarat No. of Sub Divisions 2 No. of Blocks 10 Climate Semi Arid No. of Villages (Inhabited) 519 Soil Type Loamy, Medium black soil No. of Panchayats 510 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 394400 Rainfall [in mm] NormalActual 2012-13 2013-14 2014-15

Forest Land 7900 820 552 1040 764 Area Not Available for Cultivation 45800 Variation from Normal -268 220 -56 Permanent Pasture and Grazing Land 7900 Availability of Ground Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 9565 Water [Ham] 64911 37491 27430 Cultivable Wasteland 15800 5. DISTRIBUTION OF LAND HOLDING [Nos] Current Fallow 6300 Classification of Holding Holding Area Other Fallow 1000 Nos. % to Total Ha. % to Total Net Sow n Area 297240 <= 1 Ha 140502 62.00 58280 21.00 Total or Gross Cropped Area 397115 >1 to <=2 Ha 48429 21.00 68470 25.00 Area Cultivated More than Once 99875 >2 Ha 37975 17.00 145709 54.00 Cropping Inensity [GCA/NSA] 133.60 Total 226906 100.00 272459 100.00 6. WORKERS PROFILE [Nos ] 7. DEM OGRAPHIC PROFILE Cultivators 190493 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 140502 Population 2299885 1185727 1114158 1776276 523609 Agricultural Labourers 173148 Scheduled Caste 115631 59734 55897 86794 28837 Workers engaged in Household Industries 7344 Scheduled Tribe 40336 21057 19279 27275 13061 Workers engaged in Allied Agro-activities 32965 Literate 1660243 934000 726243 1257241 403002 Other w orkers 252061 BPL 8. HOUSEHOLDS [Nos] 9. HOUSEHOLD AMENITIES [Nos] Total Households 417938 Having brick/stone/concrete houses 274395 Having electricity supply 259000 Rural Households 320426 Having source of drinking w ater 302055 Having independent toilets 172599 BPL Households 60672 Having access to banking services 212666 Having radio/tv sets 171372 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 519 Anganw adis 79 Dispensaries 58 Villages having Agriculture Pow er Supply 519 Primary Health Centres 51 Hospitals 12 Villages having Post Offices 498 Primary Health Sub-Centres 307 Hospital Beds 1196 Villages having Banking Facilities 519 12. INFRASTRUCTURE & SUPPORT SERV ICES FOR AGRICULTURE Villages having Primary Schools 450 Fertiliser/Seed/Pesticide Outlets [Nos] Agriculture Pumpsets[Nos] 9350 Villages having Primary Health Centres 57 Total N/P/K Consumption [MT] 76904 Pumpsets Energised [Nos] Villages having Potable Water Supply 519 Certified Seeds Supplied [MT] 3230 Agro Service Centres [Nos] 1 Villages connected w ith Paved Approach Roads 519 Pesticides Consumed [MT] Soil Testing Centres [Nos] 1 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 41885 Plantation nurseries [Nos] 20 Total Area Available for Irrigation (NIA + Fallow ) 303540 Pow er Tillers [Nos] Farmers' Clubs [Nos] 190 Irrigation Potential Created 194000 Threshers/Cutters [Nos] Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least once) 195270 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 117610 Rural/Urban Mandi/Haat [Nos] 20 Wholesale Market [Nos] 22 Area irrigated by Wells 117000 Length of Pucca Road [Km] 1164 Godow n [Nos] 400 Area irrigated by Tanks 58580 Length of Railw ay Line [Km] 5266 Godow n Capacity[MT] Area irrigated by Other Sources 19520 Public Transport Vehicle [Nos] 1223 Cold Storage [Nos] 30 Irrigation Potential Utilized (Gross Irrigated Area) 213100 Goods Transport Vehicle [Nos] 34565 Cold Store Capacity[MT] 30000 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] Crop 2013-14 2014-15 Avg. Yield Food (Rice/Flour/Dal/Oil) 20 NA Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) NIL NA Paddy 113900 249897 87000 190878 2194 Fruit (Pulp/Juice/Fruit drink) 1 NA Bajara 56300 79383 65000 91650 1410 Spices (Masala Pow ders/Pastes) 15 NA Wheat 70100 175250 83120 224424 2700 Dry-fruit (Cashew /Almond) 2 NA Maize 25970 31813 27000 33075 1225 Cotton (Ginnining/Spinning) 4 NA Cotton 21289 11708.95 4000 2200 550 Milk (Chilling/Cooling/Processing) 4 4.25 L LPD Tobacco 64000 96576 14000 21126 1509 Meat (Chicken/Motton/Pork) 1 NA Banana 4500 162000 3700 133200 36000 Animal feed (Cattle/Poultry) 1 NA 17. ANIM AL POPULATION AS PER CENSUS 2012 [Nos ] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of Total Male Female Veterinary Hospitals/Dispensaries 33 Animal Markets [Nos] NA animal [Nos] Cattle - Cross 120765 8148 112617 Disease Diagnostic Centres [Nos] 12 Milk Collection Centres [Nos] 525 bred Cattle - 179747 76047 103700 Artificial Insemination Centers [Nos] 665 Fishermen Societies [Nos] 11 Indigenous Buffaloes 742471 32265 710206 Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] 0 Sheep - Cross 506 319 187 Animal Husbandry Tng Centres [Nos] Fish Markets [Nos] 2 bred Sheep - 17346 8183 9163 Dairy Cooperative Societies [Nos] 679 Poultry hatcheries [Nos] 10 Indigenous Goat 134236 29854 104382 Improved Fodder Farms [Nos] Slaughter houses [Nos] 3 Pig - Cross bred 0 0 0 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous 0 0 0 Fish Production [MT] 2800 Per cap avail. [gm/day] 379 Horse/Donkey/C 8579 5110 3469 Egg Production [Lakh Nos] 464.96 Per cap avail. [nos/p.a.] 40 amel Poultr y - Cr os s 3800 794 3006 Milk Production [Lakh LPD] 15.01 Per cap avail. [gm/day] 438 bred Poultr y - 28870 13412 15458 Meat Production [MT] 2856.63 Per cap avail. [gm/day] NA Indigenous Source : Gujarat Statistical Abstract of Gujarat State 2010 and District Stastical Abstracts 2010-11, 2011-12, 2012-13 7

PLP 2016‐17 Kheda

Banking Profile of Kheda District as on 31-Mar-15 District - KHEDA State - Gujarat Lead Bank - Bank of Baroda 1. NETWORK & OUTREACH No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Agency Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial 19 178 106 38 34 0 9519 117 20 Banks Regional Rural 1 9 3 4 2 Nil 262 Nil 00 Bank District Central 1 31 21 8 2 Nil 418 Nil 00 Coop. Bank Coop. Agr. & 1 5 131NilNilNil Rural Dev. 00 Bank Primary Agr. 448 Nil Nil NA 00 Coop. Society 448 448 0 0 Private Sect. 5 16 5 6 5 Nil Nil NA NA NA All Agencies 27 239 136 59 44 Nil Nil 117 NA NA 2. DEPOSITS OUTSTANDING No. of accounts Amount of Deposit [₹.'000] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial NA NA NA NA NA 81351100 91021700 101047000 11.01% 95.61% Banks Regional Rural NA NA NA NA NA 220300 235100 340600 44.87% 0.25% Bank Cooperative NA NA NA NA NA 3510400 3945900 4768700 20.85% 4.14% Banks All Agencies NA NA NA NA NA 85081800 95202700 106156300 11.51% 100.00% 3. LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [₹.'000] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial NA NA NA NA NA 21929800 24628600 28656100 16.35% 90.42% Banks Regional Rural NA NA NA NA NA 115700 123700 144800 17.06% 0.45% Bank Cooperative NA NA NA NA NA 3105600 2485300 2841300 14.32% 9.12% Banks All Agencies NA NA NA NA NA 25151100 27237600 31642200 16.17% 100.00% 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During 2014-15 Cumulative Agency Agency 31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Commercial Banks NA NA NA NA Banks 26.96% 27.06% 28.36% Regional Rural Regional Rural Bank NA NA NA NA Bank 52.52% 52.62% 42.51% Cooperative Cooperative Banks NA NA NA NA Banks 88.47% 62.98% 59.58% Private Sect. Others NA NA NA NA All Agencies 29.56% 28.61% 29.81% All Agencies NA NA NA NA 6. PERFORMANCE TO FULFILL NATIONAL GOALS as on 31 March 2015 (Rs in 000) Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total [₹.'000] Loans [₹.'000] Loans [₹.'000] Loans [₹.'000] Loans [₹.'000] Loans Commercial 23178200 80.88% 13144800 45.87% 8625100 30.10% 64000 0.22% 1871400 6.53% Banks Regional Rural 112000 77.35% 51200 35.36% 31900 22.03% 0 0.00% 18700 12.91% Bank Cooperative 2460200 86.59% 1484600 52.25% 187000 6.58% 0 0.00% 73600 2.59% Banks All Agencies 25750400 81.38% 14680600 46.40% 8844000 27.95% 64000 0.20% 1963700 6.21% 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Agency Target [₹.' Ach'ment [₹. Ach'ment Target [₹.' Ach'ment [₹. Ach'ment Target [₹.' Ach'ment Ach'ment Ach[%] in 000] '000] [%] 000] '000] [%] 000] [₹. '000] [%] last 3 years Commercial 10872000 7697400 12900800 9804600 13970089 10260600 70.80% 76.00% 73.45% 73.42% Banks Regional Rural 24600 48000 21600 65200 31288 45200 195.12% 301.85% 144.46% 213.81% Bank Cooperative 3871600 1525100 5020300 1449200 4548005 1741300 39.39% 28.87% 38.29% 35.52% Banks All Agencies 14768200 9270500 62.77% 17942700 11319000 63.08% 18549382 12047100 64.95% 63.60% 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Broad Target [₹.' Ach'ment [₹. Ach'ment Target [₹.' Ach'ment [₹. Ach'ment Target [₹.' Ach'ment Ach'ment Ach[%] in Sector 000] '000] [%] 000] '000] [%] 000] [₹. '000] [%] last 3 years Crop Loan 6851000 4016700 58.63% 8200600 5947100 72.52% 7876167 5533200 70.25% 67.13% Term Loan 3715400 2277800 61.31% 4858900 1945200 40.03% 4624154 3076000 66.52% 55.95% (Agr) Total Agri. 10566400 6294500 59.57% 13059500 7892300 60.43% 12500321 8609200 68.87% 62.96% Credit Non-Farm 1135600 1023500 90.13% 1410700 1114200 78.98% 1484780 1090800 73.47% 80.86% Sector Other Priority 3066200 1952500 63.68% 3472500 2312500 66.59% 4564281 2347100 51.42% 60.57% Sector Total 14768200 9270500 62.77% 17942700 11319000 63.08% 18549382 12047100.00 64.95% 63.60% 9. RECOVERY POSITION Agency 2012-13 2013-14 2014-15 Average Rec. Demand [₹. Recovery [₹. Recovery [%] Demand [₹. Recovery [₹. Recovery Demand [₹. Recovery [₹. Recovery [%] in last 3 '000] '000] '000] '000] [%] '000] '000] [%] years Commercial NA NA NA NA NA NA NA NA NA NA Banks Regional Rural NA NA NA NA NA NA NA NA NA NA Bank Cooperative NA NA NA NA NA NA NA NA NA NA Banks Others NA NA NA NA NA NA NA NA NA NA All Agencies NA NA NA NA NA NA NA NA NA NA Source: DCC Agenda, Key bank data, SLBC Returns 9