PLP 2016-17 Ramanathapuram District
Total Page:16
File Type:pdf, Size:1020Kb
PLP 2016-17 Ramanathapuram District EXECUTIVE SUMMARY I. Introduction Ramanathapuram has a hot tropical climate, temperature ranging from 22.3ºC to 37.8 ºC and the relative humidity is high at 79% on an average and it ranges between 8% to 90% in coastal areas. It is a district known for Chilly and Cotton in Tamil Nadu. With 34% share, the district is the top chilly producer in the State. The type of soil available in the district are black clay soil and generally nitrogen deficient, affected by salinity and alkalinity. The major food crops grown in the district are Paddy, Cotton and Ragi. Chilly are some of the principal horticulture crops. Normally, dry climate prevails over the district. The average annual rainfall of the district is 827 mm. There are no perennial rivers in the district. The major source of irrigation is by way of Dug wells and now Farm Ponds. The district is drought prone and socially backward. The district has a long coastal line of 271 Km. Fishing is the most popular activity. This district is famous for Corals and dry fish. The major Industries are Pearl fishery, chank fishery and prawn farming. Ornamental products made from sea-shell forms the main cottage industry in the coastal areas of the district. The district also abounds in palm trees and a variety of palmyra products are made out of them and exported to various countries. II. Bank Network and Credit flow The district has a well spread out network of commercial bank branches numbering 106 and almost all Public and Private sector banks are having their branches in the District. The district is also serviced by 24 branches of PandyanGrama Bank, 30 branches of Ramanathapuram District Central Cooperative Bank, 4 branches of Ramanathapuram Co-operative Urban Bank, 1branch of REPCO Bank, 1 branch of TAICO Bank and 131 Primary Agricultural Cooperative Societies. The ground level credit flow to various sectors in the district during the last two years and the target for the year 2015-16 are as under : (₹. lakh) Sl. Type of 2013-14 2014-15 2015-16 No. Loan Target Achievement Target Achievement Target 1 Crop 86024.16 79752.16 96550.01 105090.63 114676.30 Loan 2 Term 74007.14 68699.92 87433.94 55752.44 89093.49 Loan 3 NFS / 18105.93 17959.94 19697.27 18682.51 20085.43 MSE 4 OPS 38465.16 38363.26 44100.00 43023.84 44100.26 Total 216602.39 204775.28 247781.22 222549.42 267955.48 III. Sector-wise PLP projection for the year 2016-17 Based on the available infrastructure and natural resources, the potential for credit flow has been assessed at ₹.314958.00lakh for 2016-2017 as against ₹.267955.48 lakh estimated for the year 2015-16, indicating an increase of 17.54%. Out of this, crop loan accounts for a major share of ₹.139514.46 lakh (44.30%), followed by Term Loan to Agriculture and Allied activities at ₹.56779.48 lakh (18.03%), Housing at ₹.27200.00 lakh (8.64%), Education at ₹.27000.00 lakh (8.57%), Others at ₹.22405.00 lakh (7.11%), MSME at ₹.15047.28 lakh (4.78%), Ancillary Activities at ₹.10118.61 lakh (3.21%).Agriculture Infrastructure at₹.7556.04 lakh (2.40%), and Social Infrastructure, Renewable energy, Export Credit at ₹.4702.50 lakh (1.49%), ₹.2534.63 lakh(0.80%), ₹.2100.00 lakh (0.67%)respectively. Of these, the Crop loan increase works out to PLP 2016-17 Ramanathapuram District 21.7%.The share of Term loan and MSME sectors have been decreased by 36.27% and 25.08% respectively, as most of the sectors in term loan and MSME have been classified separately under the revised Priority Sector Norms. The activity-wise and block-wise assessment of physical and financial programmes are presented in Annexure I. IV. Sector-wise comments on important sectors 1) Crop Loan :Crop loan accounts for major share of`₹.139514.46lakh accounting for 44.30% of the potential for the total priority sector. Improvements in adequate supply of quality seeds and pesticides to farmers in time, Coverage of non-loanee farmers and financing tenant farmers through JLG mode, implementation of revised KCC norms with issue of RupayKisan Cards, strong extension system, setting up of Agri clinics, storage facilities at village/block level and promotion of technologies like SRI paddy, drum seeder, etc., will enhance the credit flow under crop production. 2) Term loan for agriculture and allied activities :Term loan for agriculture and allied activities is another important area where credit could play a crucial role in improving the productivity. In the event of drought, the agriculture production will come down drastically, as majority of the area is irrigated through tanks (kanmois) and farm ponds. It calls for investment in irrigation structures.Land development, plantation and horticulture, animal husbandry, fisheries etc. are considered to be thrust areas. Accordingly, an amount of₹.56779.48 lakh is projected for Term loan for agriculture and allied activities. 3) Agriculture Infrastructure :The credit requirements forAgriculture Infrastructure activities such as Storage facilities, land development, soil conservation, watershed, organic cultivation etc. were also assessed and it accounts for₹.7556.04 lakh constituting 2.40% of the total projections. 4) Ancillary Activities :Of the farm credit projections, Ancillary Activities such as Food and Agro Processing account for ₹.10118.61 lakh. Activities like Milk Processing, Fish Processing, Bakery Products etc., are also included under this category. 5) MSME Sector :MSME sector plays a major role in the economy of the district along with agriculture. Accordingly, the credit potential for this sector is assessed at ₹.15047.28lakh. 6) Export Credit : A new sector included under Priority Sector now as per the revised PSL Norms of Reserve Bank of India is Export Credit to various manufacturers in the district. An amount of ₹.2100.00lakh has been projected for this sector taking into account the potential prevailing in the district in respect of fish, millets and palmyra activities. 7) Education : Education plays a vital role in development of any district. As a new sector under the revised PSL norms, an amount of ₹.27000.00 lakh has been projected for the year 2016- 17. 8) Housing :Shelter to the people has been considered as one of the important factors enhancing the standard of living of people living in the district. As a new sector under the revised PSL norms, an amount of ₹.27200.00 lakh has been projected for the sector considering the need and demand for the sector. 9) Renewable Energy : This sector which was considered under Agriculture Term Loans earlier, has now been classified as a separate sector under the revised PSL Norms. An amount of ₹.2534.63 lakh has been projected under this sector. PLP 2016-17 Ramanathapuram District 10) Others : Activities such as Retail trade, self employment, overdraft under PMJDY and Consumptions Loans are being categorized as Other Activities under the revised PSL Norms. An amount of ₹.22405.00 lakh has been projected under this sector, considering the number of PMJDY accounts opened as also the consumption needs of the people. 11) Social Infrastructure :Bank credit for Social infrastructure such as Schools, Hospitals, Drinking Water, Sanitation etc. have been considered as a separate sector under the revised PSL norms. An amount of ₹.4702.50 lakh has been projected for this sector. Critical Infrastructure : Some of the critical infrastructure identified for realizing the potentials as projected in this document are summarized below: a) Crop Production :The major problem in the district is scarcity of water due to scanty rainfall and saline nature of the entire groundwater. It is necessary for the government to take up immediately the construction of percolation ponds, check-dams, watersheds, percolation tanks, renovation / desilting of existing tanks etc. b) Water Resources :Modernisation of existing tanks for bringing more areas under Agriculture to augment food security. Water saving devices of micro irrigation systems like drip / sprinkler systems should be popularized. c) Plantation and Horticulture : Crop diversification with mango, banana may be encouraged rather than concentrating only on Paddy, Chilly and Cotton. d) Informal credit delivery system : Coordination between banks, District Administration, BDOs and NGOs is necessary for introducing a reliable MIS for the SHG and JLG programme and for arresting the rising trend of NPA in SHG loans. V. Area based scheme : Based on the needs and potential existing and support schemes such as subsidy from State / Central Governments available, area based scheme for promoting credit flow in the area of Dairy, especially in potential blocks have been furnished in this document. Adequate credit flow need to be ensured for the area development in the selected blocks. VI. Innovative Initiatives :Projects under UPNRM, Lead Crop implemented by Farmers Clubs through an NGO in Mudukulathur Block and construction of Farms Ponds in the land of farmers free of cost under MGNREGS Scheme (in association with Agri Engineering Department) has helped farmers belonging to the surrounding villages to cultivate Chillies and Cotton and earn higher income ranging from 20-30%. VII. Thrust areas : Promotion of JLGs to increase credit flow in agriculture and allied activities, promotion of Farmers Club Federations (FCFs), promoting the FCFs into Producer Organisations, implementation of area based development schemes with a focus on promoting agriculture on commercial scale, creation of cold storage facilities for chilly are the thrust areas where adequate credit flow is required from financial institutions. VIII. Credit flow monitoring :There is a need to assess and monitor the credit flow into vital sectors of the economy in the district. Necessary interventions have to be made to ensure credit flow in those sectors. Effective implementation of SAMIS system is essential to have a review on PLP 2016-17 Ramanathapuram District the progress made under ACP.