PLP 2016-17 Wayanad district EXECUTIVE SUMMARY I General The theme of the PLP 2016-17 will be “Accelerating the pace of capital formation in agriculture and allied sector”. Wayanad district has a total geographical area of 2129 sq km of which 37 per cent is covered by forests. About 83 per cent of the total land holdings are of less than one hectare size. Both net sown area and gross cropped area have declined progressively over the last 10 years, with slight fluctuation in some years. Coffee, Pepper, Paddy, Cardamom, Coconut, rubber, arecanut, Tea, banana and vegetables are the major crops grown. The area under paddy has been on decline and area under rubber has been on the rise. Coffee and Pepper continues to be the major crop of the district. As regards productivity, Coffee is having productivity of 851 kg/Ha (State Average 799) whereas Black Pepper’s productivity is only 414 Kg/Ha (State Average 547). In India, Coffee is cultivated in around 2.92 lakh Ha. Of it 85,000 Ha is in Kerala. In Wayanad Coffee is grown in 67364 ha. The concept of organic farming is gaining momentum in the district. Prominent allied activity is dairy. The Gross District Domestic Product (at factor cost by industry of origin) at current price for the year 2013-14 for Wayanad district is `831919 lakhs. The per capita income at Factor Cost by Industry of Origin for the year 2013-14(at current price) is at Rs.100563 lakh (for the population of 8.27 lakh) viz. 13th position amongst 14 districts in the state. Primary sector including agriculture and allied activities contribute an amount of ` 2263.95 crore to the total district GDP. This is 27% of the district GDP. The primary sector contribution to the State GDP (at Factory Cost by Industry of Origin at current price) is 4.12% (2013-14 quick estimate). The Population of the district is 8,16,558 (as per 2011 census of which 17% are tribal) and more than 90% of the population directly or indirectly dependent on agriculture and related activities. The district has also been declared as a zero industry district under RSVY. Ground Level Credit flow under Priority Sector, which stood at ` Rs.1511.68 cr during 2011-12, increased by 26 per cent to Rs.1905.24 crore during 2012-13 and then further increased by 24% percent to Rs.2365.46 crore during 2013-14. During 2014-15 the GLC flow was to the tune of `2780 crore (an increase of 17.55%). Primary Sector took a lion’s share of 76 per cent while the share of Tertiary and Secondary Sectors were in the range of 11 and 13 per cent respectively during 2014-15. All banks collectively achieved the overall targets set under Annual Credit Plan during last three years. CD Ratio of the district, which was 124 per cent as on 31 March 2013, fell sharply to 113 per cent as on 31 March 2014 and maintained the same level of 113% for 2014-15 too. Banks in the district were able to achieve national goal benchmarks in respect of credit to priority sector, agriculture and weaker sections, but fared poorly in DRI advances. The Base PLP projection for 2016-17 in respect of Wayanad district was Rs.3441.30 crores and the revised/re-assessed projection stands at Rs.3817 crores. The revised projection for 2016-17 is nearly 11 cent more than the base PLP projection and 17.45 per cent more than the ACP target for the year 2015-16. The share of Primary, Secondary and Tertiary Sectors are in the order of 79, 9 and 12 percent of the total projections. Crop production has a share of 57 per cent of the total projection and the share of term loans in total agriculture is 25 per cent. The projection under Crop Loans increased due to revision in Scale of Finance. Similarly, projections under Plantation & Horticulture, Farm mechanization, Animal Husbandry and Fisheries have increased mainly on account of revision in unit cost. In the context of special emphasis given by Government of India regarding the LT investment credit as well as in the light of promotion of Producer Companies by NABARD and several trainings imparted under FSPF/FTTF 1 PLP 2016-17 Wayanad district it is expected that the long term investment will boost further. The thrust given on ‘Make in India’ programme will induce growth both for Food and Agro processing as well in the MSME sector. The PMJDY and Loans to JLGs will further connect the poorest citizens with the bank in a better manner and necessary projections at a higher level were provided for the same. In short Wayanad can provide an acceptable model of start up in the field of Food and Agro processing once we harness the motivational skills of the young people than considering them as mere wage earners. Already under UPNRM, NABARD has supported poly house projects and strengthening of infrastructure facilities will further boost long term investment in this sector. Moreover five producer companies have been recently formed in the district (of which 3 were supported under Produce Fund) and this will pave way for increased long term investment in the agricultural field since sufficient buy back arrangement will be there. Generally, the FPOs need at least 6 months to one year period of incubation. Two of the FPOs (M/s WASP and M/s. WAYFARM) have already moved on to procurement of farm produce and collective marketing and the heartening thing is that they are able to provide value addition in one form or other. As regards AH-Dairy and AH-SGP there is an increase of 26% and 113% respectively from the base PLP. This is mainly on account of the Area Development Schemes programmed and described in Chapter VI, diversification plans of Milk Societies as well as due to the expansion of Goat farm at Regional Agricultural Research Station, Amabalvayal. Dairy will continue to be one of the major segment of finance by banking sector. Above all the commissioning of Brahmagiri Meat Processing factory will further boost up the AH sector in the entire Malabar region. In the context of Government’s emphasis on food security, creation and strengthening of infrastructure like warehouses are planned and enhanced potential is assessed. Other than above, the financial projections have been revised to reckon the change effected in the cost of scale of finance. It is imperative to mention here that the commissioning of BIOWIN (financed under the UPNRM project of NABARD) has paved way for boosting the export credit both in terms of value addition of coffee and spices. Key constraints in respect of major sectors are summarized below: . Crop Loans: Inadequate support price and other incentives for food crops, KCC coverage, storage & marketing . Water Resources: Low irrigation intensity, poor propagation of micro irrigation . Farm Mechanisation: Incentives to make easy availability of farm machinery . Plantation & Horticulture: Inadequate supply of quality planting material, lack of infrastructure for value addition, processing, storage & marketing, lack of affordable systems and technology for protected cultivation. Animal Husbandry-Dairy: Inadequate availability of quality animals and fodder . Animal Husbandry-Poultry: Unavailability of chicks locally . Animal Husbandry-Goat/Pig: Good quality animals. Fisheries: To bring all potential water bodies under scientific farming . Agriculture Infrastrcuture : Availability of land for godown; inadequacy of inputs for organic farming; lack of experts for initiating tissue culture studies . Food & Agro processing : lack of technical man power for production of value addition products and problems related to marketing etc. Renewable Energy: Non-availability of quality devices at affordable cost . Micro & Small Enterprises: Incentives for land & power, inadequate skill training . Export credit : inadequate skill training for production of quality spices; processing of credit cases by banks needs to be sent to their HQ(most of them situated outside the district); . Education : Overall backwardness of the district where 17% are tribals; 2 PLP 2016-17 Wayanad district II New Schemes & Programmes With a view to have cluster based, planned approach for development of potential activities in compact areas, with active participation of all the stake holders, it is proposed to formulate Area Development Schemes. Based on the assessed potential, availability of linkage support and other required factors, Dairy-milch animals, have been identified for formulation of Area Based Schemes in Wayanad district. The beneficiaries are proposed to be mobilised into Joint Liability Groups (JLG) as this mode of financing serves as collateral substitute for loans provided to the small, marginal, tenant farmers, oral lessees, share croppers, etc. It enables the banks to reach farmers through group approach and helps in channelizing the benefits of cluster based approach, facilitate peer education and credit discipline etc. It is proposed to promote 600 JLGs in association with various banks/AH Department & Dairy Development department. (details are given in Chapter 6). For integrated tribal development with orchard based farming, already 6 wadi projects are in existence in Wayanad (nearly 1700 families are covered). In all these wadis, based on cluster, Producer Companies are being formed and discussions are underway for the same. For enabling the Wayanad Green Tea Producer Company to set up a tea factory, recently a loan has been sanctioned by NABARD. The support to 3 producer companies (M/s WASP; WAYFARM and BAAPCO) will pave way for ensuring adequate buy back of produce of farmers associated with these entities. Moreover more JLG formations and value addition in agri processing is expected. The new centres for sorting, grading and standardization (from out of these FPOs) will lead to new collection centres and for further processing facilities with the help of RARS/KINFRA etc.