Executive Summary
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PLP 2016-17 Krishna district EXECUTIVE SUMMARY 1.1 Overview of the district: Krishna District with its head quarter at Machilipatnam and consisting of 50 mandals is divided into delta and upland zones. The delta zone comes under Krishna Eastern Canal Irrigation Command System consisting of 28 mandals and upland zone comes under Nagarjuna Sagar Project (NSP) Left Canal Command System consisting of 22 mandals. The net sown area is 4.69 lakh ha. (ie., 54% of total geographical area) and the area irrigated is 73% of the cropped area. The district is endowed with a rich variety of soils and occupies an important place in agriculture with paddy as the major food crop. The other major economic activities include Animal Husbandry, Poultry, Fisheries and Horticulture. Non-farm sector activities include handloom, kalamkari, rolled gold jewellery, Kondapally toys and few engineering units. Banking network in the district consists of 593 branches of Commercial Banks (including private banks), 60 branches of Saptagiri Grameena Bank (SGB), 50 branches of Krishna District Cooperative Central Bank Ltd (KDCCB) and 425 PACS. The total deposits and loans outstanding of all the banks in the district were `.22,75,318.00 lakh and `.26,16,236.00 lakh respectively as on 31.3.2015 with an overall growth rate of 6% and 3% respectively. The CD ratio and priority sector advances of all the agencies was much above the national goals. 1.2 Trends in credit flow: The ground level credit flow for priority sector lending (PSL) had increased at growth rate of 21% from `3,74,319 lakh in 2010-11 to `6,66,115 lakh in 2013-14. But during 2014-15, the credit flow declined to `5,77,200 lakh which was just 73% of the ACP target i.e., `795250.11 lakh. The target for the year 2015-16 is `9,39,365.37 lakh which is 98% of the credit projections made in PLP 2015-16. 1.3 Credit potential for 2016-17:The credit projections made in the base PLP for 2016-17 have been revised in tune with the changes in the PSL guidelines, Govt priorities and with main focus on “accelerating the capital formation in agriculture and allied sector”. The total credit potential for 2016-17 under priority sector for Krishna district is estimated at `1176,446.73 lakh, registering a growth of 22% over the PLP projection and 25% over the ACP target for the year 2015-16. About 54% of the credit potential is estimated for agriculture and allied activities (`639,385.84 lakh), 4% for agriculture infrastructure and ancillary activities in agriculture, 21% for MSME and 20% for other activities like export, education, housing, renewable energy, social infrastructure and others including SHGs. 1.4 Major sectors having substantial potential (a) Farm Mechanisation:Due to high cost of labour, there is a great demand for variety of farm implements and spraying equipment’s. State Government is extending subsidy to high cost agricultural implements / machinery at 50% of the cost under RKVY. Hence credit potential has been increased to `24,676.99 lakh for 2016-17. (b) Animal Husbandry: The district has good potential under dairy sector, but its potential has been under exploited in view of the unscientific production technology being adopted by the farmers. The answer lies in putting in place an effective extension network and integration of back end logistics. The State Govt is implementing Gopala Mitra Scheme. NABARD has promoted the concept of Pasurakshak, SHG health extension workers, Azolla as alternative feed etc. GOI has introduced DEDS and National Livestock Mission for promoting investments under animal husbandry. Keeping in view the above factors, the potential for the dairy and sheep & goat activities has been increased to `27024.87 lakh and `5904.45 lakh, respectively for 2016-17. 1 PLP 2016-17 Krishna district (c) Poultry is well developed as an industry in Krishna district. Further investment in respect of modernisation, technology up gradation, hygienic market outlets, backyard poultry, rearing of other poultry species may be encouraged in the district. Some of the entrepreneurs have started Emu farming, however viability remains risky in the absence of assured market linkages. Farmers and bankers have to be cautious while financing for the activity. Keeping this in view, the projections made has been reduced from `30,084.68 lakh to `28,451.20 lakh for 2016-17. (d)Fisheries Krishna district occupies first place in the state with the total fish production at 6,31,066 MT (2014-15). LVannamei prawn culture is being taken up on a large scale in the district However, proper sensitization and registration of farms is required. Quality fish seed hatcheries are required to be established for promoting this culture on a sustainable basis. Buyers and sellers need to be connected in an organised market for an inclusive growth of the sector. State Govt has identified fisheries sector as one of the growth engines and announced a separate budget for fisheries promotion. Keeping in view the above factors, the revised exploitable potential for the sector has been estimated at `39,319.75 lakh for the year 2016-17. (d)Food and Agro processing: The district has ample scope for agro and fruit processing for which the required backward and forward linkages like raw material, technology, connectivity etc., are available. The State Govt is establishing a Mega Food Park at Thotapalli village, Agiripalli mandal for which in-principal approval has been given by the GoI. Taking this into account, the projection for 2016-17 has been increased to `20,050.10 lakh. I.5 Area Development Schemes / Banking plans in Krishna district a) Floriculture (Jasmine): The banking plan was launched on 24.1.2015 to promote establishment of new jasmine gardens, benefiting 1266 farmers with a bank loan of `560.39 lakh. b) Mini Dairy: The banking plan was launched on 20.3.2015 to support 850 new mini dairy units with an objective to add 1 lakh liters per day additional milk production with a bank loan of `4607.00 lakh. c) Traditional Fishing Communities: The banking plan was launched on 22.8.2014 to finance 1030 units of traditional boats and nets benefiting 13,775 fishermen with a bank loan of `1715.05 lakh. d) Banana(Tissue culture and precision farming): A banking plan is proposed to be launched during 2015-16 to promote establishment of new banana (tissue culture) gardens with precision farming benefiting 800 farmers with a bank loan of `884.00 lakh. I.6 Conclusion The Govt of Andhra Pradesh has constituted the “Primary Sector Mission” with the objective to transform agriculture and allied sectors by increasing productivity and mitigating the impact of risks in farming. Hon’ble Chief Minister of AP has set a target of reaching Double Digit Gross District Domestic Product (GDDP) growth within a couple of years commencing from 2015-16. For this purpose, growth engines have been identified to boost up District economy for increasing the Gross Value Addition (GVA) from `3721.47 cr during 2014-15 to `4564.58 cr during the year 2015-16. The credit potentials for farm credit projected in the PLP have been aligned to achieve the Double Digit growth in farm sector. NABARD is actively implementing number of promotional programmes for increasing the credit absorption capacity and financial inclusion like Farmers Clubs, MEDPs, PODF, UPNRM, etc. There is, thus, a need for a coordinated approach from all the developmental agencies, banks and PRIs with good reporting system for priority sector lending for ensuring the smooth implementation of Financial Inclusion and Annual Credit Plans. 2 PLP 2016-17 Krishna district Broad sector-wise PLP Projections for 2016-17 PLP Projections S.No. Sector/Activity (` lakh) A Farm Credit (i) Crop Production, Maintenance and Marketing 4,78,518.05 (ii) Term Loan for Agriculture and Allied Activities 1,60,867.79 Sub Total 6,39,385.84 B Agriculture Infrastructure 29,016.79 C Ancillary activities 21,806.60 I Credit Potential for Agriculture (A+B+C) 6,90,209.23 II Micro, Small and Medium Enterprises 2,49,169.00 III Export Credit 74,375.00 IV Education 37,500.00 V Housing 66,997.00 VI Renewable Energy 8,895.00 VII Others 47,677.50 VIII Social Infrastructure involving bank credit 1,624.00 Total priority Sector (I to VIII) 11,76,446.73 Renewable Engy Others Social Infra Housing 1% 4% 0% Education 6% 3% Export 6% Crop loan 41% MSME 21% TL-agri 14% Agri Others 2% Agri Infra 2% 3 PLP 2016-17 Krishna district Summary of Sector / Sub-sector wise PLP projections -2016-17 PLP Projections S.No. Sector/Activity (` lakh) I Credit Potential for Agriculture (A+B+C) A Farm Credit (i) Crop Production, Maintenance and Marketing 4,78,518.05 (ii) Water Resources 10,527.87 (iii) Farm Mechanization 24,676.99 (iv) Plantation and Horticulture 15,086.16 (v) Forestry and Wasteland 3,230.00 (vi) Animal Husbandry – Dairy 27,024.87 (vii) Animal Husbandry – Poultry 28,451.20 (viii) Animal Husbandry – Sheep, Goat, Piggery 5,904.45 (xi) Fisheries 39,319.75 (x) Others –Bullock, Bullock cart etc., 6,646.50 Sub Total 6,39,385.84 B Agriculture Infrastructure (i) Construction of storage facilities (Warehouses, Market yards, 15,226.88 Godowns, Silos, Cold Storage units / Cold storage chains) (ii) Land development, Soil conservation, Watershed development 6,235.95 (iii) Others (Tissue culture, Agri bio-technology, Seed production, Bio- 7,553.96 pesticides/fertilizers, Vermi composting) Sub Total 29,016.79 C Ancillary activities (i) Food and Agro processing 20,050.10 (ii) Others (Loans to cooperative societies of farmers for disposing of 1,756.50 their produce,