Executive Summary
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PLP 2016-17 Nalbari District EXECUTIVE SUMMARY Around 89.0% of the total population of the district live in villages and agriculture is the main occupation of the people engaging about 70% of the working population. No major industrial unit exists in the district. Paddy is the major agricultural crop and mustard, potato and pulses are other major crops. Fruits and vegetables are cultivated on a moderate scale. Poultry, piggery, fishery, dairy and goat rearing are the major allied agricultural activities. Sericulture, especially eri and muga rearing, is gaining popularity among villagers in some pockets in the district. 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 selected 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. PLP 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 required to be provided by line departments to facilitate credit flow as planned are also listed in the PLP. Agriulture is the main economic activity in the district. About 70% of the working population in the district is engaged in agriculture. There is no major industrial unit exists in the district. Weaving is widely done by the women in the district to generate additional income for the family. Fish production is also an important activity in the district. The strength of the district lies in its conducive soil & climatic conditions, good communication network, high literacy rate and accessibility to markets. But the district suffers from inherent weakness such as fragmentation of land holdings, poor irrigation facilities, non-availability of quality inputs, etc. The district is affected by flood every year, caused by the Brahmaputra and its tributaries. Sub-sectoral trends and credit flow for the district could not be assessed since LBR-I is not stabilised. Achievement against Annual Creidt Plan for the year 2012-13, 2013-14 and 2014-15 were 42.71%, 40.67% and 45% respectively. District has 38 branches of Commercial banks including Private Banks, 18 branches of Assam Gramin Vikash Bank, 2 branches of Assam State Cooperative Apex Bank Ltd, 2 branches of Urban Cooperative Bank and 22 PACs provide agriculture credit to their members. The CD ratio of the district during last three years 2012-13, 2013-14 and 2014-15 were 47.54%, 53.52% and 52.21% respectively. Highlights of Policy initiatives in the field of Agriculture and Rural Development by GoI/RBI/NABARD/State Government is given in Chapter I. Ongoing Government Sponsored Programmes / schemes are given in Chapter 2. It is expected that this will serve as ready reckoner for the PLP users. Brief sectoral review and projections for 2016-17 The Potential Linked Credit Plan (PLP) of Nalbari District is intended to provide insight on the potential for development of different sectors of the rural economy of the district. It is a road map for extending credit to important sectors/sub sectors/activities. The potential of each sector/sub sector that could be tapped with institutional credit have been assessed and projection of credit need for Nalbari district has been estimated at `23760.34 lakh for the year 2016-17. Block-wise details of estimates for 2016-17 are given in Annexure- I. The Base PLP projection (2012-17) for the year 2016-17 was estimated at 20498.14 lakh However, it is expecting that there will be increase in cost of various agriculture inputs and labour cost, fuel price hikes and certain factors like forecast of normal rainfall. Accordingly, the revised PLP projections for 2016-17 is estimated at Rs.23760.34 lakh, comprising of Rs.17918.47 lakh for Agriculture (Rs.11268.46 lakh for Crop Loans, Rs.6099.26 lakh for Agri Term Loans, Rs.326.35 for 1 PLP 2016-17 Nalbari District Agriculture Infrastucture and Rs.224.40 lakh for Anciliary Activities), Rs. 1991.56 lakh for SME Sector and Rs.3850.31 lakh for Other Priority Sector. The sub-sectoral projections for the year 2016-17 is given as under: FARM CREDIT Production of Seasonal Crops - Short term Crop loan Subsistence agriculture is prevalent in most parts of the district. Besides, regular kharif (Sali) crops, farmers are now growing rabi and pre-kharif season crops. The net sown area of Nalbari district constitutes about 70% of the geographical area. The most important crop of the district is paddy which covers over 77% of the gross cropped area. With the promotional and financial interventions from District Agriculture Department under various ongoing schemes, there has been a perceptible change in the cropping pattern from the traditionally cultivated paddy to other crops like oil seeds and pulses. Cultivation of vegetables is also being increasingly taken up by farmers as a result of improvement in irrigation facilities with the construction of STWs/LLPs by Agriculture Department. The potential of bank loan has been assessed at ` 11268.46 lakh for production of short duration crops in the year 2016-17. Water Resources Development of irrigation in the district is very slow. All the blocks in the district are categorised as 'Safe' blocks. Further, there is immense potential for development of surface irrigation. However, lift irrigation projects sanctioned by State Govt. in the district have not taken off well due to paucity of funds. The percentage of net sown area having assured irrigation is estimated at 28% (19780 ha) and of this, major area i.e. 77% (15210 ha) is irrigated through STW. The irrigation potential will definitely increase after implementation of AACP-World Bank Scheme or other Government schemes. A potential of `745.99 lakh is projected for minor irrigation activities for the year 2016- 17. Land Development Land Development sector is a broad area encompassing activities like land levelling and on-farm development works for preparing the land for irrigation, soil conservation, bunding and interbund, land grading in rainfed areas, reclamation of saline and alkaline soils, soil improvement and water management and improved rainfed farming practices etc. ` 36.97 lakh is projected as potential for issue of bank loan for the year 2016-17. Farm Mechanisation Farm Mechanisation helps in minimising the cost of cultivation, reducing drudgery in operations and increasing cropping intensity. Many subsidy linked programmes like AACP, Assam Vikas Yojna, etc. are going on in the district to facilitate farm mechanisation. The potential for credit under this sector for the year 2016-17 estimated at ` 853.50 lakh Plantation and Horticulture The total area under plantation and horticulture crops in Nalbari district is at around 6% of the gross cropped area. Arecanut, Banana, Coconut, Betel Vine and Assam Lemon are the major plantation and horticulture crops in the district. The potential for credit under this sector is estimated at `488.77 lakh for the year 2016-17. Dairy The production of milk in the district accounts for 3% of state’s production. The per capita daily availability of milk is estimated at 90 ml. In the district farmers have already adopted stall-fed crossbreed cattle rearing, but the number is very less. With support like induction of high yielding cattle, massive AI programme, feed and fodder development programme, this sector can grow in a massive way. The potential for credit under the sector for the year 2016-17 is estimated at ` 1275.12 lakh. 2 PLP 2016-17 Nalbari District Poultry As per the Livestock census (2007), the poultry population of the district is 4,49,548. Commercial farming is very popular in the district and many farmers rear birds in small numbers under free range system. Supply of day old chicks to the farmers is facilitated by private parties/suppliers and a few NGOs from outside the district. The potential for credit for the sector is estimated at `1101.43 lakh for the year 2016-17. Sheep / Goat / Piggery Sheep rearing activity has not picked up in the district when compared with goat rearing. There is good demand for pork and mutton in the district and this sector has immense potential for exploitation. The exploitable potential for bank credit has been projected `791.84 lakh for the year 2016-17. Fisheries The fisheries resources of Nalbari district account for 3.7% of the total resources of the state. The district is self sufficient in fish production and is in a position to supply local fish and seed to other districts. The potential for bank credit has been projected at `660.38 for the year 2016-17. MSME Development of agro-based industries will provide a boost to productivity and profitability of agriculture in the district. The development of rural non-farm sector activities, comprising village/cottage/de-centralised, household/tiny and small scale industries has been accepted as a major component of economic policy to tackle growing unemployment and underemployment, besides providing an avenue for supplementing farm income thereby helping in prevention of migration of rural population to urban areas. The potential for credit for the year 2016-17 is estimated at `1991.56 lakh for 2015-16. Renewable Sources of Energy To encourage replacement of non-renewable energy sources like fossil fuels, kerosene and diesel with solar energy to meet energy requirements in rural areas there is a need for promotion of Solar energy. There is potential for solar lighting system in villages especially in Char areas which are not yet electrified.