PLP 2016-17 -

EXECUTIVE SUMMARY A. Introduction

Navsari is primarily an agricultural district with Paddy, Sugarcane and horticulture as the predominant crops. The other major crops cultivated are Jowar, Tur, Groundnut, etc. About 47% of land holdings are with small and marginal farmers and the average size of the holdings is 0.55 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 `148170.16 lakh, of which, Crop Production sector has a major share of 26.8% at ` 39607.85 lakh. Term loan under agriculture is assessed at ` 54080.72 lakh accounting for about 57.6% of Total Agriculture and 36.5% of Total Priority Sector. Under MSME, `22580.75 lakh has been assessed as potential forming 15.2% of Priority Sector and balance at ` 31900.84 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 lower by `23342.79 lakh when compared to the PLP for the year 2015- 16 representing an decrease of 13.5%. The PLP projection has been reassessed taking into consideration of disbursement made during last three years, availability of Infrastructure for exploiting the potential and capacity of the line department to provide extension support. Further, the PLP projection is higher by `24461.72 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 a) The Navsari Agriculture University would have to play a more proactive role in channelization of the quality seeds to the farmers at reasonable rates. b) As overwhelming majority of farmers use farm saved seeds, there is need for training farmers in seed production, particularly hybrid seed, processing and storage techniques by NAU and KVK. c) Establish adequate number of soil testing labs to cover all the farmers and issue soil health cards. d) Modern methods of cultivation like Fertigation for sugarcane e) Precision farming for Vegetables, Sprinkler irrigation for pulses etc. need to be adopted for increasing production and productivity. f) Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes.

2. Farm Mechanisation a) New and modern farm machinery sales depots are to be established. Agro service centres to be established throughout the district. b) Line departments may organize awareness meets on the latest developments in farm mechanization so that the farmers are sensitized about various equipments available. c) Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. d) Banks may increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment.

3. Plantation and Horticulture a) Bank may focus on financing for Setting up of Agri-Clinics & Agri-Business, soil and water testing laboratories, pest diagnostic and control service, custom hiring of agricultural implements, setting up of apiaries, vermi-compost units, tissue culture labs, etc. b) Banks may popularise as well as provide adequate credit for Horticulture and Floriculture projects in the district. c) Banks may, in consultation with the Horticulture Department, prepare area based schemes/ banking plans and implement project based lending for beneficiaries under Schematic Approach.

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PLP 2016-17 - NAVSARI d) The Department of Horticulture may promote poly house for cultivation of vegetables and flowers in a big way in areas like and Navsari.

4. Animal husbandry a) The bankers need to ensure purchase of animals by the borrowers during the calving season while ensuring the availability of fodder and green grass. b) Banks may also encourage farmers to take up calf rearing and fodder cultivation, as viable activities with financial assistance. c) Intensive cross breeding programme may be undertaken so that better quality animals would be available at the local level. d) The AH Deptt. may arrange awareness camps to educate the farmers on health and maintenance of cattle

5. MSME a) Banks should step up their lending to MSME sector including provision of adequate Working Capital assistance. b) Keeping in view the importance of this sector and potential existing, banks need to play a proactive role leading to provision of adequate bank credit to this sector in the district. c) Pro active action is required from banks for entrepreneurship development in rural areas and motivation of prospective entrepreneurs. d) Improved and efficient backward and forward linkages, including imparting of training to artisans for skill upgradation and improving quality of produce, is required to be ensured. e) Proactive action for entrepreneurship development in rural areas, motivation of prospective entrepreneurs and improvement/expansion of infrastructure support is essential.

C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. by NABARD

 Wadi Project – NABARD’s initiative on Natural Resources Management with focus on Tribal Development under the “Wadi Project”. In Navsari District, there are 5 projects covered 4500 tribals.  Grants assistance for implementation of Pilot Project on Systematic Rice Intensification (SRI) programme to increase the production of rice.  Financial Assistance provided to Navsari Agriculture University for conduct of various National Level Workshop for benefit of farmers.  Conduct of various Financial Inclusion Awareness Programme in the district.  Financial Support to State Governments for creation of infrastructure viz. Roads, Check Dams, Anganwadi, CHC/PHCs, Undergrould Drainage, etc.  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.  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, etc.

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.

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PLP 2016-17 - NAVSARI

Broad Sector-wise PLP projection 2016-17 (` Lakh) Sr.No. Particulars PLP Projection 2016-17 A Farm Credit I Crop Production, Maintenance and Marketing 39607.85 ii Term Loan for agriculture and allied activities 30036.49 Sub Total 69644.34

B Agriculture Infrastructure 11482.35 C Ancillary activities 12561.88 I Credit Potential for Agriculture (A+B+C) 93688.57 II Micro, Small and Medium Enterprises 22580.75 III Export Credit 3400.00 IV Education 1700.00 V Housing 22950.00 VI Renewable Energy 208.14 VII Others (SHGs/JLGs) 3212.50 VIII Social Infrastructure involving bank credit 430.20 Total Priority Sector (I to VIII) 148170.16

Broad Sector Wise Projection for 2016-17

Others 2%

Ren. Social Energy Infra. 0% 0%

Education Housing Crop Loan 1% 16% 27% Export 2%

MSME 15% Term Loans Ancillary Acti. Agri. Infra. 20% 9% 8%

Crop Loan Term Loans Agri. Infra. Ancillary Acti. MSME Export Education Housing Ren. Energy Others Social Infra.

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PLP 2016-17 - NAVSARI

Summary of Sector/Sub-Sector-wise PLP projection 2016-17 (` Lakh) Sr.No. Particulars PLP Projection 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 39607.85 ii Water Resources 4465.75 iii Farm Mechanisation 9877.50 iv Plantation and Horticulture (including sericulture) 6886.80 v Forestry and Waste Land Development 75.54 vi Animal Husbandry – Dairy 5544.00 vii Animal Husbandry – Poultry 479.25 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 45.90 ix Fisheries (Marine, Inland, Brackish water) 2645.55 x Others – Bullock, Bullock cart, etc. 16.20 Sub Total 69644.34 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, 6729.75 Godowns, Silos, Cold storage units/ Cold storage chains) ii Land development, Soil conservation, Watershed development 1070.10 iii Others (Tissue culture, Agri bio-technology, Seed production, Bio 3682.50 pesticides/ fertilizers, Vermin composting) Sub Total 11482.35 C Ancillary Activities Food and Agro processing 9061.88 Others (Loans to Cooperative Societies of farmers for disposing of 3500.00 their produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 12561.88 Total Agriculture 93688.57 II Micro, Small and Medium Enterprises i MSME – Working capital 4944.00 ii MSME – Investment credit 17636.75 Total MSME 22580.75 III Export Credit 3400.00 IV Education 1700.00 V Housing 22950.00 VI Renewable Energy 208.14 VII Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay 3212.50 non-institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST)

VIII Social Infrastructure involving bank credit 430.20 Total Priority Sector 148170.16

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PLP 2016-17 - NAVSARI

NAVSARI DISTRICT MAP

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PLP 2016-17 - NAVSARI

District Profile District - Navsari State - Division - Navsari 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 2209 Agro-climatic Zone Gujarat Plains & Hills Region - Southern Hills No. of Sub Divisions 6 No. of Blocks 6 Climate Semi Arid to Dry Sub-Humid No. of Villages (Inhabited) 372 Soil Type Black, Medium black, Stony, Shallow Sandy Loam Soil No. of Panchayats 367 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 220077 Normal 2012 2013 2014 Actual Forest Land 25098 Rainfall [in mm] 1776 1902 2397 1439 Area Not Available for Cultivation 16063 Variation from Normal (%) 7 35 -19 Permanent Pasture and Grazing Land 6513 Availability of Ground Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 101 Water [Ham] 48393 20425 24852 Cultivable Wasteland 13066 5. DISTRIBUTION OF LAND HOLDING Current Fallow 7654 Holding Area Classification of Holding Other Fallow Nos. % to Total Ha. % to Total Net Sown Area 131096 <= 1 Ha 76938 65 24779 17 Total or Gross Cropped Area 154619 >1 to <=2 Ha 21215 18 30109 21 Area Cultivated More than Once 23519 >2 Ha 21059 18 87270 61 Cropping Inensity [GCA/NSA] (%) 118 Total 119212 100 142158 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 119 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 83 Population 1330 678 652 921 409 Agricultural Labourers 162 Scheduled Caste 36 18 18 18 18 Workers engaged in Household Industries 9 Scheduled Tribe 639 320 319 572 68 Workers engaged in Allied Agro-activities Literate 1001 539 462 676 336 Other workers 244 BPL 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 409 Having brick/stone/concrete houses Having electricity supply 352 Rural Households 268 Having source of drinking water 350 Having independent BPL Households 58 Having access to banking services 193 Having radio/tv sets 340 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 372 Anganwadis Dispensaries 1 Villages having Agriculture Power Supply 372 Primary Health Centres 36 Hospitals 12 Villages having Post Offices 246 Primary Health Sub-Centres 281 Hospital Beds 906 Villages having Banking Facilities 76 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 372 Fertiliser/Seed/Pesticide Outlets Agriculture Pumpsets[Nos] Villages having Primary Health Centres 36 Total N/P/K Consumption [MT] 35450 Pumpsets Energised [Nos] 10751 Villages having Potable Water Supply 230 Certified Seeds Supplied [MT] 70 Agro Service Centres [Nos] 10 Villages connected with Paved Approach 372 Pesticides Consumed [MT] Soil Testing Centres [Nos] 2 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 4750 Plantation nurseries [Nos] 95 Total Area Available for Irrigation (NIA + 131096 Power Tillers [Nos] 4020 Farmers' Clubs [Nos] 129 Irrigation Potential Created Threshers/Cutters [Nos] Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least 89799 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 59300 Rural/Urban Mandi/Haat [Nos] 11 Wholesale Market [Nos] 4 Area irrigated by Wells 28274 Length of Pucca Road [Km] 2755 Godown [Nos] 157 Area irrigated by Tanks 2005 Length of Railway Line [Km] 36 Godown Capacity[MT] 101000 Area irrigated by Other Sources 220 Public Transport Vehicle [Nos] 3178 Cold Storage [Nos] 2 Irrigation Potential Utilized (Gross Irrigated 89799 Goods Transport Vehicle [Nos] 5461 Cold Store Capacity[MT] 5000 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] 2013-14 2014-15 Avg. Yield Crop Food 258 48000 Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) 11 200000 Paddy 67319 259223 67869 257563 3823 Fruit (Pulp/Juice/Fruit drink) 5 1200 Sugarcane 17591 1372098 17495 1348304 77535 Spices (Masala Powders/Pastes) Jowar 1521 2202 1480 2239 1480 Dry-fruit Tur 1602 1602 1005 995 996 Cotton Groundnut 39 47 44 49 1157 Milk (Chilling/Cooling/Processing) 1 219000 Mango 24790 220631 29025 252523 8792 Meat Chikoo 6384 76863 7660 92235 12041 Animal feed 17. ANIMAL POPULATION AS PER CENSUS 2007 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of animal Total Male Female Veterinary Hospitals/Dispensaries 30 Animal Markets [Nos] Cattle - Cross bred 95 16 79 Disease Diagnostic Centres [Nos] Mil collection Centres 25 Cattle - Indigenous 61 26 35 Artificial Insemination Centers [Nos] 221 Fishermen Societies 17 Buffaloes 102 19 83 Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] Sheep - Cross bred Animal Husbandry Tng Centres Fish Markets [Nos] 6 Sheep - Indigenous 2 1 1 Dairy Cooperative Societies [Nos] 464 Poultry hatcheries [Nos] Goat 66 21 45 Improved Fodder Farms [Nos] Slaughter houses [Nos] 1 Pig - Cross bred 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous Fish Production [MT] 20158 Per cap avail. [gm/day] 39 Horse/Donkey/Camel 1 Egg Production [Lakh Nos] 522 Per cap avail. [nos/p.a.] 47 Poultry - Cross bred Milk Production ['000 MT] 219 Per cap avail. [gm/day] 405 Poultry - Indigenous 5424 Meat Production [MT] 3283 Per cap avail. [gm/day]

Sources (if not Item Nos. 1, 6, 7, 9 & 10 - Census 2011(P); Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - Census 2011; Item No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; Item No. mentioned against 17 - AH Census 2012; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. of Eco. & Stat. the respective item):

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PLP 2016-17 - NAVSARI

Banking Profile District - Navsari State - Gujarat Lead Bank - Bank of Baroda 1. NETWORK & OUTREACH (As on 31/03/2015) No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Agency Banks/Soc. Total Rural Semi- Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 32 197 110 30 57 3667 97 2 2542 Regional Rural Bank 1 31 27 2 2 3175 12 16156 District Central Coop. 1 22 20 2 142 17 22765 Coop. Agr. & Rural Dev. 1 4 4 94 125207 Primary Agr. Coop. 110 110 110 3 4553 Others All Agencies 145 364 271 32 61 6984 97 128 171223 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 Banks 1596915 1876518 2257717 20 91.14 109826500 128328000 144767300 12.81 95.11 Regional Rural Bank 113835 125869 147162 17 5.94 2978500 3511700 4008400 14.14 2.63 Cooperative Banks 71878 72328 72421 0 2.92 2795500 3054500 3433600 12.41 2.26 Others All Agencies 1782628 2074715 2477300 19 100 115600500 134894200 152209300 12.84 100.00 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 Banks 85482 66718 87943 31.81 85.09 18900000 21839700 25404500 16.32 89.45 Regional Rural Bank 11249 12693 13898 9.49 13.45 1017000 1234800 1473200 19.31 5.19 Cooperative Banks 1329 1340 1507 12.46 1.46 961600 863600 1521500 76.18 5.36 Others All Agencies 98060 80751 103348 53.77 100 20878600 23938100 28399200 18.64 100 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 Banks 17.21 17.02 17.55 Commercial Banks 381199 21225 2257717 87943 Regional Rural Bank 34.14 35.16 36.75 Regional Rural Bank 21293 1205 147162 13898 Cooperative Banks 34.40 28.27 44.31 Cooperative Banks 93 167 72421 1507 Others Others All Agencies 18.06 17.75 18.66 All Agencies 402585 22597 2477300 103348 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector Loans Loans to Agr. Sector Loans to Weaker 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 Banks 6734800 27 5837900 23 5336700 21 NA NA 3110800 12 Regional Rural Bank 1260300 86 532700 36 451300 31 NA NA 166700 11 Cooperative Banks 953400 63 397200 26 264900 17 NA NA 28400 2 Others All Agencies 8948500 32 6767800 24 6052900 21 NA NA 3305900 12 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Agency Target [`'000] Ach'ment [` Ach'ment [%] Target Ach'ment Ach'ment Ach'ment [` Ach[%] in Target [`'000] Ach'ment [%] [`'000] [` '000] [%] '000] last 3 years Commercial Banks 10592100 6632403 63 13817500 7904726 57 14810700 7790200 53 56.93 Regional Rural Bank 1208700 593207 49 1637400 741034 45 1688600 839300 50 47.93 Cooperative Banks 2911600 871579 30 3660800 415837 11 3586300 126900 4 13.92 Others All Agencies 14712400 8097189 55 19115700 9061597 47 20085600 8756400 44 48.07 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Broad Sector Target [`'000] Ach'ment [` Ach'ment [%] Target Ach'ment Ach'ment Ach'ment [` Ach[%] in Target [`'000] Ach'ment [%] [`'000] [` '000] [%] '000] last 3 years Crop Loan 4108200 2002000 49 4991100 1862588 37 7406000 1916600 26 35.03 Term Loan (Agr) 5073600 2172689 43 6303900 2195309 35 3366300 1478400 44 39.65 Total Agri. Credit 9181800 4174689 45 11295000 4057897 36 10772300 3395000 32 37.21 Non-Farm Sector 1235400 930400 75 1538000 1281100 83 4887100 3259000 67 71.41 Other Priority Sector 4295200 2992100 70 6282700 3722600 59 4426200 2102400 47 58.76 Total Priority Sector 14712400 8097189 55 19115700 9061597 47.40 20085600 8756400 44 48.07 9. RECOVERY POSITION 2012-13 2013-14 2014-15 Average Agency Demand [` Recovery [` Recovery Demand [` Recovery Recovery Demand [` Recovery [` Recovery Rec. [%] in '000] '000] [%] '000] [` '000] [%] '000] '000] [%] last 3 years Commercial Banks ------Regional Rural Bank ------Cooperative Banks ------Others ( Not Available) ------All Agencies ------Sources : Lead Bank & SLBC 8