PLP 2016-17 Serchhip District EXECUTIVE SUMMARY “Accelerating the pace of capital formation in agriculture and allied sector”. Serchhip district is one of the eight districts of Mizoram and it is situated in the middle of the State of Mizoram. With an area of 1421.60 sq. kms, the district comprises two Blocks and 35 inhabited villages. The district is bounded on the north and northwest by Aizawl district, on the west and south by Lunglei district and on the east by Champhai district. The district shares an international border with Myanmar in its southeastern side. The district is about 112 km from the State capital. The district is mostly a hilly terrain with two main rivers flowing viz. Tuichang and Mat. Area upto slope 35 is only 389.86 sq. km with water body of only 4.55 sq. km. Area under forest is 91235 Ha, net sown area 18497 Ha and gross irrigated area is 2054 Ha. Rain fall per year varies from 1500mm to 2400mm. Temperature varies from 32C in Summer and 9C in the Winter. The population of the district is 64937 as per the 2011 census of which 32851 were males and 32086 were females. The rural population is 50.69%. The district is thinly populated with 46 persons per square km, which is much below the State average of 52 persons per square km. The district has a literacy rate of 97.91%. The demographic profile of the district is characterized by its predominantly agrarian nature with a majority of the population living in rural areas. Agriculture is the main occupation of the people in the district. The agro-climatic conditions with fertile soil and abundant rainfall is favorable for horticulture crops viz., banana, pineapple, passion fruit, hatkora, orange and vegetables viz., cabbage, cauliflower, tomato, etc. Major Crop production, which is paddy, in the district takes place during Kharif season. There are Jhum cultivation on the hills and WRC on the bank of the Mat River. In Rabi season Mustard, Cabbage, Radish, Carrot, Tomato, Potato, Pulses are grown. There are teak plantations in the district also. Piggery, Dairy and poultry are the major allied activities. The district has three branches of SBI, seven branches of MRB and one branch of MCAB. Under priority sector, the Ground Level Credit flow during 2012-13, 2013-14 and 2014-15 was Rs.2191.48 lakh against target of Rs.2905.55 lakh (75.42%), Rs.1100.83 lakh against target of Rs.1685.00 lakh (65.33%) and Rs.2005.12 lakh against target of Rs.1405 (142.71) respectively. The average achievement percentage for the last three years was 94.49%. The CD ratio of the district as on 31 March 2015 was 56.76% which is below the prescribed norms of 60%. Investment in agriculture is generally undertaken for acquiring physical assets that result in the creation of a stream of incremental income over a period of time. Capital formation through investment in agriculture helps in improving the stock of equipment, tools and productivity of resources employed, which, in turn, enables the farmers to use their resources, particularly land and labor, more productively. Creation of capital goods, thus, is necessary for raising productivity of existing resources and realizing the long-term growth potential. Therefore, the relationship between capital formation and thus agricultural growth and consequently poverty alleviation are very well documented. The Potential Linked Credit Plan for the year 2016-17 has been prepared keeping in view the projections made in the base PLP prepared for a five year period and updated with reference to the changes that have taken place in the various infrastructure facilities, demand for credit, priorities of the government for development of the different sub-sectors and reckoning the changes in the unit cost/scale of finance necessitating significant revision for specific sectors. Some of the major features are highlighted below: [1] PLP 2016-17 Serchhip District Sector wise comments Crop Production: Agriculture and allied activities form the backbone of the economy of the district. Taking into account the favorable policies of the State government towards promotion of SRI, RKVY, NPDP etc. and continuation of programme such as NLUP, NADP, NFSM,NHM, PLP potential for credit flow during 2016-17 has been projected at Rs.1648.19 lakh. The thrust of the bankers should be to cover all the eligible and willing farmers through credit under KCC. Water Resources: With only 8.5% net sown area under irrigation, there is good scope for finance under various rain water harvesting structures by adopting joint/group farming methods. Credit flow of Rs. 15.13 lakh is projected for 2016-17. Energisation of pump-sets is pre-requisite for satisfactory performance in the irrigation sector. Therefore, all villages need to be electrified. Farm Mechanisation: Being a hilly district, power Tillers are the appropriate FM devices in the district. In view of the small average holdings in the district, there is less demand for tractors in the district. Potential of Rs.37.32 lakh is projected for 2016-17. Plantation & Horticulture including Sericulture: With Serchhip District being including under National Horticulture Mission, there is ample scope for developing plantation and horticulture in the district. An assessment of Rs.216.90 lakh for the year 2016-17 has been made. There is a need to link the developmental components under NLUP and also under the centrally sponsored schemes with credit components under ACP. Forestry and Waste land Development: Large area of degraded and wasteland of the district can be used for afforestation. Suitable plantation may be taken through bank finance. The assessment has been made at Rs.6.51 lakh for the year 2016-17. AH–Dairy: Dairy sector has immense importance in the State of Mizoram. It not only provides supplementary employment and income to the farmers, but also helps in reducing the gap between demand and supply of milk in the district as well as in the State. There is Dairy Society in the district which is supplying milk to MULCO State milk and milk produces cooperative. PLP projection for Dairy is Rs.331.43 lakh, bank should explore financing this sector under subsidy linked scheme of GOI. AH–Poultry: Poultry sector has great importance in the State of Mizoram. It provides supplementary employment and income to the farmers and helps in reducing the gap between demand and supply of egg and meat in the district as well as in the State. There are two district Hatcheries of the capacity of 700 each and a Layer unit of 50 birds. PLP projection for Poultry is Rs.54.06 lakh. AH–Sheep/Goat/ Piggery: Every household takes to piggery in back yard for self consumption. There is Pig Farmers’ Society in the district of 97 members. There are 20 small units of Mithun. Goatery has also scope in the district. PLP projection for S/G/P is Rs.276.77 lakh. Insurance linkage in AH Sector is to be busted. Fisheries Development: There is scope for limited development of fisheries in the district. PLP projections have been made at Rs.38.46 lakh for 2016-17. Water bodies created by the Government under different schemes may be used for development of fisheries and it can also be leased out to good SHGs/JLGs. In areas where WRC is adopted, fish cum paddy can be explored. Others: There is a limited scope for financing of bullock, horse or pony which is used by Jhum cultivators to carry their produces. The projections have been made at Rs.6.89 lakh for 2016-17. Thus total Farm credit projection for the year 2016-17 is Rs.2631.63 lakh. B. Agriculture Infrastructure Storage/ Godown/ market yard, Poly House and Shade net House: There is not much scope in the district for big units under the sector through bank loan. The projections have been made at Rs.50.04 lakh for 2016-17. Land Development: To create more area of permanent/settled farming, terracing of slopes (25% & 33% slopes) are the main activities under land development. Credit projection is Rs.8.19 [2] PLP 2016-17 Serchhip District lakh for the year 2016-17. Considering the vast potential in rain-fed / dry-land farming / watershed management, the involvement of credit in the watershed programmes of DPAP and IWDP needs to be explored by the banks. Other Agriculture Infrastructure: To cater seed consumption, Bio fertilizer and Pests for the farmer’s soil testing equipments, Seed Production Units, Vermi compost units and other Bio fertilizer and Bio Pest units are to be established. Credit projection is Rs.63.78 lakh for the year 2016-17. Thus total Agriculture Infrastructure projection stands at Rs.122.01 Lakh. C. Ancillary Activities Food and Agro Processing: A projection of Rs.48.12 lakh is made for 2016-17. This sector can be developed with intervention of the Govt. like strengthening backward & forward linkages and uninterrupted electricity supply. Others: Projection on ACABC finance is made for Rs.8.00 lakh for the year 2016-17. This sector can be developed with awareness campaign. Thus total projection for Ancillary activities is Rs.56.12 lakh and total agriculture finance is Rs.2809.75 lakh. II. Micro, Small and Medium Enterprises Manufacturing Sector-Term Loan: To provide gainful employment opportunities in the rural population who are mostly dependant on agricultural incomes, it is necessary to support smaller ventures in NFS. An amount of Rs.296.16 lakh is projected for the year 2016-17. Service Sector – Term Loan: To provide opportunities to the Doctors, Retail Trade/small Business and Small Transport Operators etc.