PLP 2016-17 - NAVSARI 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. 1 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 Gandevi 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. 2 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. 3 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 4 PLP 2016-17 - NAVSARI NAVSARI DISTRICT MAP 5 PLP 2016-17 - NAVSARI District Profile District - Navsari State - Gujarat 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.