PLP – 2016-17 Jhajjar District EXECUTIVE SUMMARY I About District Jhajjar district with a geographical area of 1834 Sq. Km. (1911 Sq. Km. according to village papers) is situated in the Middle Eastern part of the Haryana State. It is surrounded by Rohtak and Sonepat districts in the North, Rewari and Gurgaon districts in the South, national capital Delhi in the East and Bhiwani district in the West. It comprises of 3 tehsils, 1 sub-tehsil, 5 blocks, 5 towns and 247 inhabited villages/ towns. Agro-climatically, Jhajjar district falls under sub-humid and semi-arid zone. The economy is purely agrarian and is supported by other economic activities like dairying, horticulture, service, trade and business. The district (except Bahadurgarh block) has been identified as an industrially backward. According to 2011 census, the population of the district is 9.58 lakh with a population density of 523 persons per KM. The Sex ratio is alarmingly low at 862 females per thousand males. District is in a better position with respect to roads, education, electricity and water availability and lagging behind in respect of irrigation, transportation, marketing facilities, etc. than the State Infrastructure Average Index. Out of the total 73203 landholdings, 50072 landholdings are with that of small and marginal farmers (68.4% of the total) who own up to 2 hectares of land. However, the land holding area of these farmers aggregate to 36516 hectares which constitutes 23.9% of the total land holding area of the district. Total geographical area of Jhajjar district is 1,91,000 hectares. The total cultivable area is 1,69,000 hectares. Net cropped area during 2014-15 was 1,60,000 hectares, whereas gross cropped area is 2,43,250 hectares. The net irrigated area of the district was 1,09,000 hectares which was 68% of net cropped area. The gross irrigated area was 1,95,028 hectares which was 80% of gross cropped area. The cropping intensity of the district is 152%. The district has a network of 166 Bank branches and 23 PACS. PLP Preparation: NABARD in the year 2012-13 had prepared Base PLP for five years coterminous with the XII Five year plan-(2012-17). The Base PLP projected a five year credit potential under priority sector covering Primary, Secondary and Tertiary sectors, with emphasis on the Primary sector. These projections were based on parameters such as technical feasibility, availability of infrastructure, availability of exploitable resources, cropping pattern, agriculture practices and other developmental indices such as access to markets, etc. Some of these parameters may have undergone a change in the district since the finalization of Base PLP on account of factors such as changes in Government’s priorities and policies, strengthening of rural infrastructure, market forces, cost escalation, etc., necessitating a relook at the credit potential for the year 2015-16. The District Profile also gives information related to the district, both demographic as well related to Agriculture sector. It also describes the major crop grown and various aspects linked to it. The main theme of this year’s PLP is ‘Accelerating the pace of capital formation in agriculture and allied sector’ and keeping that in mind the PLP has made Term Loan in Agriculture as thrust area this year. Flow of Ground Level Credit (GLC) The ground level credit flow (priority sector) during last 3 years is exhibited below: (` in lakh) Sector Year 2012-13 2013-14 2014-15 Agriculture Sector 99447.40 113589.76 133556.53 MSME Sector 18793.19 20173.73 54440.33 Other Priority 19897.86 46837.48 35489.58 Sector i PLP – 2016-17 Jhajjar District Total Priority Sector 138138.45 180600.97 223486.44 Percentage increase 2.22% 30.8% 23.74% over previous year The share of crop loan in total agriculture during last six years was 93.6%, 91.1% and 87.2% respectively. In sharp contrast, the share of term credit in total agriculture has shrunk over the years though it shoed marginal increase. This is primarily on account of financing for Kisan Credit Card (KCC) which caters to other/ allied credit needs of farmers besides meeting cost of cultivation of different crops. KCC scheme due to large publicity, suitability to farmers and comfortability to banks has set the total agriculture credit growing. PLP 2016-17 - Projection of Sector-wise Potentials Based on various factors like long-term potential, availability and identified gaps in infrastructure, marketing support, State/Central Govt. policies, credit flow trends during recent years, credit absorption capacity and other strengths and weaknesses of the credit delivery systems, a plan of Rs. 339972 lakh has been prepared. Major components are Crop Loans (Rs.165478 lakh), Allied Agriculture (Rs.74437 lakh), MSME Sector (Rs. 55337 lakh) and Other Priority Sector (Rs.44720 lakh). The projections as compared to the projections in base PLP 2012-17 have been revised keeping in view the current infrastructure and other requirements at the field level. Accordingly reasons have been mentioned in the respective chapters. The PLP also indicates the projections with regard to formation of 300 and credit linkage of at least 300 SHGs and 15 more Kisan clubs. In Jhajjar district, a total of 1,55,403 KCCs were issued upto 31 March 2015. It is essential on the part of all banks to make sincere efforts for issuing fresh KCCs to cover all the cultivators (1,77,377) by the end of 2016-17. The Block wise Potential takes into account the existing cultivation area, credit flow trends, potential available, possibility of grounding new schemes, etc. while at the same time endeavoring to have a balanced credit flow for all regions within the district. Other contents and Issues The PLP has endeavoured to address the areas for diversification in all sectors and needs to be noted down by the banks. The Mission for Integrated Development of Horticulture (MIDH) subsidies on offer are referred to in the document. The Micro Finance Sector states the need to credit link at least 300 SHGs in 2016-17. The growth rate of linkages has been slow and the NRLM and NGOs need to work with Banks aggressively. The section on Non-Renewable energy may be perused for obtaining an insight into the priorities of the government and the possible sub sectors which can be financed. The Central Government Priority for SMEs and Housing and Education has been factored in assessing the potential for Non Farm Sector/ Other Priority Sector. The Chapter on Agro Processing/ Food Processing Sector has been included under SME chapter. The Animal Husbandry Section in Chapter-3.1.6 incorporates the credit flow which can be tapped through the Dairy Entrepreneurship Development Scheme(DEDS) and other schemes. Term Loans to Agriculture need to be stepped up by banks so as to facilitate asset creation in the agriculture sector. Centre Govt. through its Budget has also emphasized on extending loaning to this sector. Farm Mechanisation section requires a perusal to understand the need to move beyond tractor financing to other farm equipments. The PLP briefly addresses issues of Infrastructure especially Marketing Infrastructure sector. PLP also provides details regarding all the important Government sponsored programmes with a review of the same. Critical analysis has been attempted to review the performance of the financial institutions. Role of informal credit delivery system has also been assessed. The details regarding various policy initiatives by Government of India, Reserve Bank of India, National Bank for Agriculture and Rural Development (NABARD) & Government of Haryana for over all development, have been consolidated at Chapter I. The details of initiatives taken under SHG- Bank Linkage Programme are explained in Chapter XI. ii PLP – 2016-17 Jhajjar District II. A new approach to PLP has been made by focusing on one activity which give thrust to the sector in which there is lot of scope and potential and thus PLP focuses this year on Dairy in Chapter 6 under Area Based Scheme. Model scheme to develop this sector is being proposed. Some innovative banking products like Rupay KCC, Financial Inclusion measures have been mentioned in PLP. The PLP also focuses on formation of atleast 100 JLGs this year by giving fillip to oral lessees, landless farmers and other tenant farmers. It also focuses on Wet and Dry storage financing, Post Harvest infrastructure, Producers Organisations and other commercial agriculture activities in the district. III. Every Chapter briefly describes the Critical infrastructure which needs to be supported by the State Govt. and it has a bearing on the credit potentials assessed in this PLP. Govt. needs to support Cold chain infrastructure, rural godowns and other value chain interventions wherever necessary. IV. District Coordinators of banks need to guide entrepreneurs as also Line departments for sectors such as Horticulture, Fisheries, Animal Husbandry, Market Yards/Rural Godowns, etc. Reporting in ‘Agriculture Others’ under LBR needs to be realistic by banks while Crop Loans or the relevant sub sector in term loans needs to be reported accurately. The Banks need to focus upon the Micro Finance Sector for scaling up NFS as also to double credit flow to SMEs by the end of 12th Plan. The DIC may facilitate growth in NFS by sponsoring more cases of Industry. Banks may also encourage such prospective entrepreneurs. The Branch Heads need to overcome attitudinal barriers for general SHG financing – specially the need to finance both Consumption and Income Generating activities in a flexible manner. The Farmers Clubs movement is confined to a few Banks only. The Clubs need to be regular in their meetings and activities also. The clubs have also been envisaged as Business Facilitators. Banks may form clubs in the light of increasing business through these clubs.