PLP 2016 17 Surendranagar District EXECUTIVE SUMMARY a. Introduction Surendranagar district is primarily an agricultural district with cotton and cumin as the predominant crops. The other major crops cultivated are bajra, wheat, sesamam, groundnut, etc. About 37% of land holdings are with small and marginal farmers and the average size of the holdings is 1.22 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 ` 305987.00 lakh, of which, Crop Production sector has a major share of 75% at ` 230000.00 lakh. Term loan under agriculture is assessed at ` 57500.00 lakh (20% of Total Agriculture) which is 19% of Total Priority Sector. Under MSME, ` 11500.00 lakh has been assessed as potential forming 4% and balance at ` 6987.00 lakh has been estimated for other sectors like Exports, Education, Housing, etc.which formed 2% of total priority sector. The activity-wise and block-wise assessment of potential is presented in Annexure I. The PLP projection for 2016-17 is lesser by ` 11058.15 lakh when compared to the PLP for the year 2015-16 due to carving out of developed block (Halvad) to a new district (Morbi). Further, the PLP projection is higher by ` 25987.00 lakh when compared to the ACP target for the year 2015-16. b. Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under: (i) Crop Production, Maintenance and Marketing Adoption of advanced technologies for the restoration of soil health, mechanisation, and cultivation of suitable remunerative crops, effective pest and disease management are essential to step up the agricultural production. Modern methods of cultivation like Fertigation for sugarcane, Precision farming for Vegetables, Sprinkler irrigation for pulses etc need to be adopted for increasing production and productivity. Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes. (ii) Water Resources and Land Development As monsoon continues to be erratic, need for greater focus lies in water resource management. Farmers need to be incentivised to save water by adopting suitable cropping pattern on their farms. There is a need for conserving soil moisture security so that “more crop per drop” can be achieved. (iii) Farm Mechanisation Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. Banks may increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment. (iv) Plantation and Horticulture Horticulture crops could be encouraged as an alternative to the traditional cropping pattern in the district. Vegetables and Floriculture may be encouraged under modern methods like Green house/controlled conditions with bank credit. The Departments of Horticulture and Agriculture may popularise suitable horticulture crops for development in cultivable wastelands and saline/alkaline areas. (v) Animal husbandry Animal husbandry, particularly dairy is the most suitable subsidiary occupation. As dairy offers quick returns and near stable prices, banks may finance liberally ensuring tie-up arrangements with Dairy farms/societies. Banks may also encourage farmers to take up calf rearing and fodder cultivation, as viable activities with financial assistance. 1 PLP 2016 17 Surendranagar District (vi) MSME Banks should step up their lending to MSME sector including provision of adequate Working Capital assistance. Handloom Weavers and Handicrafts sectors in the district need to be adequately supported with bank credit. Banks may encourage artisan SHGs/JLGs from Handloom, Arts & crafts in these areas and also issue SCCs. c. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. NABARD’s initiative on Natural Resources Management with focus on Tribal development 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. ‘WADI” model is holistic in approach, addressing production, processing and marketing of produce and other livelihood needs. 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, Area Development Plans/Schemes, etc. as applicable to the district. 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 Surendranagar District Sector-wise PLP Projections 2016-17 (` Lakh ) PLP Sr.No. Particulars Projections A Farm Credit (i) Crop Production, Maintenance and Marketing 230000.00 B Agri Term Loan (i) Agriculture and Allied Activities 36796.00 (ii) Agriculture Infrastructure 19113.00 (iii) Ancillary Activites 1591.00 Total Agri Term Loan 57500.00 Credit Potential for Agriculture (A+B) 287500.00 C Micro, Small and Medium Enterprises 11500.00 D Others (i) Export Credit 800.00 (ii) Education 480.00 (iii) Housing 3100.00 (iv) Renewable Energy 221.00 (v) Others 1900.00 (vi) Social Infrastructure involving bank credit 486.00 Total ‘Others’ 6987.00 Total Priority Sector (A to D) 305987.00 MSME Others 4% 2% Agri. Term loan 19% Crop loan 75% Crop loan Agri. Term loan MSME Others 3 PLP 2016 17 Surendranagar District Sub-sector wise PLP Projections 2016-17 ` lakh Sr. PLP projections Particulars No for 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 230000.00 ii Water Resources 9932.00 iii Farm Mechanization 19249.00 iv Plantation & Horticulture (including sericulture) 2927.00 v Forestry & Waste Land Development 484.00 vi Animal Husbandry – Dairy 1678.00 vii Animal Husbandry - Poultry 179.00 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 82.00 ix Fisheries (Marine, Inland, Brackish water) 261.00 x Others – Bullock, Bullock cart, etc. 2004.00 Sub Total 36796.00 B Agriculture Infrastructure Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, 10087.00 i Cold storage units/Cold storage chains ii Land development, Soil conservation, watershed development 8587.00 Others (Tissue culture, Agri bio-technology, Seed Production, Bio 439.00 iii pesticides/fertilizers, Vermin composting) Sub Total 19113.00 C Ancillary activities i Food and Agro processing 1355.00 Others (Loans to Cooperative Societies of farmers for disposing of their produce, 236.00 ii Agri Clinics/Agri Business Centres, Loans to PACS/FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 1591.00 Total Agriculture 287500.00 II Micro, Small and Medium Enterprises i MSME – Working Capital 2654.00 ii MSME – Investment credit 8846.00 Total MSME 11500.00 III Export Credit 800.00 IV Education 480.00 V Housing 3100.00 VI Renewable Energy 221.00 Others (Loans to SHGs/JLGs, loans to distressed persons to prepay non- VII institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST 1900.00 VIII Social Infrastructure involving bank credit 486.00 Total Priority Sector 305987.00 4 PLP 2016 17 Surendranagar District District Map of Surendranagar Courtesy: www.mapsofindia.com 5 PLP 2016 17 Surendranagar District DISTRICT PROFILE 1. Profile of the district: Surendranagar is known as the gateway to Saurashtra Region. The Climate here is extreme. The average rainfall of the Surendranagar district (1984-2013) was 550 mm. During 2015 (till 14.9.15), the district received 73% of the average rainfall. The geographical area of the district is 9271Sq. Km. Among main crops, cotton occupies maximum area under cultivation. Bajra & Groundnut, Sesame, Cumin, Vegetables and Oilseeds are the other main crops. The district with gross cropped area of 648660 ha has a cropping intensity of 104.23%. The net sown area is 623934 ha and the net irrigated area (133522 ha) formed 21.40 % of the net sown area. (Source: Agri.Dept). The chief agricultural produce of Surendranagar district is cotton. In fact Surendranagar district is one of the highest quality producers of cotton in world. First private cotton futures trading exchange was established in Surendranagar. The district being hub of cotton and ginning activities of India is one of the largest producer of quality "Shankar" cotton in world is also home to large number of ginning and pressing units. Little Rann of Kutch of the district produces nearly 25% of India's salt supply. 2. Status of PRI System in the District To have effective public participation at district, Taluka and Village Level the governing bodies are called Jilla Panchayat, Taluka Panchayats and Gram Panchayats. These governing bodies are empowered with devolution of powers, functions and functionaries. At village execution of Government work is primarily done through Gram Sevaks and Talatis. 3. Infrastructure available There are 150580 land holders in the district. Out of this, 41192 holders having land upto 2.0 ha. indicating the number of SF/MF population, 93577 holders are have land between 2.0 ha. and 10.0 ha. and rest of them are having more than 10.0 hectres. There are 11 Rural Markets, 7 Market yards, one Soil Testing Laboratory and one District Farmers' Training Centre at Surendranagar and five seed farms under the administration of District Panchayat Agriculture department.