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Executive Summary PLP 2016-17 Baksa District EXECUTIVE SUMMARY 1.i. Theme of PLP 2015-16 and Sectoral Projections for the year 2016-17 The criticality of capital formation ‘in’ and ‘for’ agriculture need not be overemphasized. However, the recent declining trend in investment credit vis-à-vis crop loan has serious implications for sustaining capital formation. The theme for the PLP 2016-17 is ‘Accelerating the pace of capital formation in agriculture and allied sector’. The PLP maps the potential in priority sectors which could be exploited with institutional credit within a specified time frame. PLPs are intended to provide a meaningful direction to the flow of credit to different sectors at the ground level taking into account all relevant factors. The various linkages and other support services required to be provided by line departments to facilitate credit flow as planned are also listed in the PLP. Baksa District is a newly re-organised district under Bodoland Territorial Council of Assam carved out from three districts viz Nalbari, Barpeta and Kamrup. It is located between 90º.8´ E to 91º.8´ E longitude and 26º.35´N to 26º.83´N latitude on North-West side of Assam. The district is surrounded by Chirang district in the West, Barpeta, Nalbari & Kamrup districts in the South, Udalguri district in the East and Bhutan on the North. The District head quarter is located at Mushalpur. The district is divided into 3 sub-divisions viz. Mushalpur, Tamulpur & Salbari. There are 8 development Blocks in the district with 690 inhabited villages. The total geographical area of the district is spread over 2346 Sq. Km approx. The total population of the district is 9.50 lakh (Census 2011). About 40% of the district’s population comprises of SCs/STs. The economy of Baksa is basically agrarian. Agro-ecologically, the district falls under Lower Brahmaputra valley zone of Assam. The district has a network of 3 major tributaries of the Brahmaputra viz. Beki, Pagladia and Barnadi and about 10 small rivers which are very active during rainy season. The economy of the district is primarily agriculture based with approximately 75% of its population dependent directly or indirectly on agriculture and allied activities. The most important crop in the district is paddy, which constitutes nearly 50% of the gross cropped area. Other important crops are potato, wheat, mustard, lentils and jute. However, with the introduction of HYV, expansion of area under irrigation, farm mechanization, etc., multicropping is gradually gaining popularity. Piggery, Poultry, Dairy, Fishery, Sericulture are important allied activities in the district. Medium Scale Industries and Tiny Industries are not coming up in a big way because of non-availability of infrastructural facilities like Rail & road network, power supply, skilled workers/entrepreneurs, proper markets and good telecommunication etc. A good number of Self Help Groups (SHGs) are evolving as micro enterprises in the district. About 86% farmers fall under marginal, small and landless category. If issues of food security and extreme poverty are to be addressed, no policy can afford to bypass these smallholder farmers. These are some of the poorest households and ironically some of the hungriest as well, despite being the food producers. They are poor because they lack the ability to buy high-yielding seeds, fertilisers, irrigation equipments and other tools needed to increase productivity. As a result, their output is meagre and insufficient for their subsistence. Their poverty causes low farm productivity, and low farm productivity reinforces their poverty. It is a vicious cycle, technically known as ‘poverty trap’. To get this poor segment of population out of the poverty trap, the efforts of the Govt. alone may not be adequate. A multipronged approach would be necessary to address various issues. Institutional credit support to the needy ones plays a significant role in this direction. These smallholder farmers form the ‘Bottom of the Pyramid’ (BOP) customer base. The growth in credit market (farm and rural non-farm) would not take place without inclusion of BOP clientele. Extensive use of mFIs, business correspondents / facilitators or any other innovative inclusion model supported by information technology would enable the banks to reach every nook and corner of the district. Activity wise potential for exploitation through credit intervention flow under various sectors have been identified keeping in mind the traditional skill, availability, market infrastructure, extension support, etc. as well as the general investment climate. The Base PLP projection (2012-17) for the year 2016-17 was estimated at `35305.63 lakh. However the development of infrastructure and flow of credit has not been on the expected lines. Accordingly, the revised PLP projections for 2016-17 is estimated at `24673.89 lakh. 1 PLP 2016-17 Baksa District Crop Production, Maintenance & Marketing Based on the revised cropped area, updated SoF and the GLC flow in the district, the credit potential for Crop Production, Maintenance & Marketing activities in the district for the year 2016- 17 has been estimated as `13292.90 lakh. Water Resources Assured irrigation is the most essential input for increasing sustainable agricultural productivity. Low Lift Points (LLPs) with pumpset are found technically feasible and financially viable as there are large water bodies in the district. Govt. of Assam has taken initiatives to bring more area under irrigation by installation of LLPs for increasing crop production. An amount of `489.30 lakh has been projected as investment under the private sector. Land Development The Government attaches considerable importance for improving the productivity of land and soil resources by reclamation of degraded and fallow lands as well as problem soils under its National Watershed Development Project for Rainfed Areas. The credit potential for land development activities in the district has been arrived at `1037.63 lakh. Farm Mechanisation Machineries like tractors, power tillers and harvesters can be utilised, thus saving time, energy and expenses. Under the Central Scheme of Macro Management of Agriculture, the farm machineries and implements are promoted with subsidy to ensure timely agricultural operations. The bank loan projection for Farm Mechanisation has been arrived at `1469.59 lakh for the year 2016-17. Plantation & Horticulture The agro-climatic condition of the district is congenial for development of plantation crops. Horticulture crops like pineapple, citrus, papaya etc. has good scope in the district. Baksa is a non- traditional area in respect of Sericulture and it is considered as an additional activity in rural areas. Keeping this in view, the projection for Plantation & Horticulture sector has been arrived at `1948.38 lakh. Forestry and Waste Land Development There are large unutilised tilla land in the district where bamboo, other forestry plants, etc. can be grown profitably. As there is scope for waste land development and farm forestry in the district, a bank loan support of `247.48 lakh has been considered for the year 2016-17. Animal Husbandry – Dairy, Poultry, Sheep, Goat and Piggery Development Dairy and Livestock farming has good potential in the district. Keeping in view of the government initiatives, the physical and financial projections made in the Base PLP have been revisited and a credit potential of `2353.47 lakh has been arrived at for the year 2016-17.. Fisheries Development The demand of fish in the market has motivated the farmers to develop fishery and to culture fish in the district. Fish production and productivity are increasing due to various initiatives taken by the State Government. However, the projections made in the Base PLP were on a higher side. The credit potential for the year 2016-17 has been realistically arrived at `516.27 lakh. Storage Godowns/Market Yards Stocking arrangements for various essential consumable items and surplus agricultural produce is required to meet any eventuality in the district. Keeping in view the GoI’s policy initiatives, the projection for the year 2016-17 has been arrived at `116.16 lakh.. Renewable Sources of Energy Keeping in view the GoI’s policy initiatives in promoting the Renewable Sources of Energy, the physical and financial projections made in the Base PLP are revised. The financial projection for the year 2016-17 has been arrived at `59.93 lakh. 2 PLP 2016-17 Baksa District Other Agricultural activities Other allied activities Bullocks, Bullock Carts, etc. also need credit support as means of livelihood for rural youth. The financial projection for the year 2016-17 has been arrived at `105.20 lakh. MSME Sector MSME activities are promoted in the district through rural artisans, Weavers, Small Scale Industries (SSIs) and Cottage and Tiny Village Industries (CTVIs). The financial projection for the sector covering investment as well as working capital for the year 2016-17 has been arrived at `956.70 lakh. Other Sectors The district offers good potential for expansion of credit under Export Credit, Education Loan, Housing Loans, Renewable Energy, Infrastructure etc. Credit to this sector has occupied a significant share of total credit flow in the district. Further, expansion of this sector complements the development of other sectors. An amount of `1695.97 lakh has been projected under the sector for the year 2016-17. 3 PLP 2016-17 Baksa District Appendix A to Annexure 1 Broad Sector wise PLP Projections 2016-17 District : Nalbari State
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