EXECUTIVE SUMMARY. The theme for the PLP shall be Accelerating the pace of capital formation in agriculture and allied sector.

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1 EXECUTIVE SUMMARY The theme for the shall be Accelerating the pace of capital formation in agriculture and allied sector. 1. Specific characteristics of Amravati district. The total population of the district as per the 2011 census is lakh; of which % resides in rural area. The literacy rate is 87.38% (Male % and female-83.1%). The average rainfall is 815 mm. The area under cultivation during the year was about 6.82 lakh ha in Kharif and about 1.75 lakh ha in Rabi season. The soil is mostly Black Cotton and Dark Brown. The main occupation of the people of the district is agriculture and the main crops are soybean, cotton, jowar, pulses, oilseeds etc. Majority of the rural population is dependent directly or indirectly on agriculture, agro-industries and the allied activities. The district is industrially backward. Amravati Municipal Corporation area falls in C category. Only three blocks out of fourteen are in D+ category and rest of the district comes under D category indicating very low industrial development. Handicraft units, Handloom industry, Power loom units etc., are very less. Rural artisans viz. carpenters, blacksmith, cobblers, goldsmith, potters, bamboo workers, etc., work at subsistence level. The district has got comparatively good bank branches network to offer various financial services. The district has 27 commercial banks with 225 branches of which 140 branches are catering to the needs of semi-urban and rural population. The ADCCB has 94 branches and VKGB has 7 branches. There are 501 BCs working in the district. These BCs are providing all type of banking facilities to the villagers. Past trend of priority sector credit flow and projections for the year During the year to the broad sector wise GLC flow for priority sector was as under : (` lakh) Purpose Crop Loan Agri. Term loans Non Farm Sector Other Priority Sector Total Priority Sector Keeping in view the exploitable potential available, credit absorption capacity of the farmers entrepreneurs, financial health of the credit institutions in the district, trend in GLC flow etc. an amount of ` lakh has been projected for priority sector for the year In Amravati district, 28 Commercial Banks, Amravati DCCB and Vidharbha-Konkan Gramin Bank are working with a network of 327 branches network. 225 out of 327 branches are in rural and semi-urban area. Banks are arranging credit support to all type of borrowers in the district. Total deposits of the district were ` lakh as on and deposit growth was 8.5%. Total loan disbursement by banks during

2 15 was ` and growth was 21.1%. As per data available, disbursement under NFS was ` lakh during which reduced to ` lakh during Major Sector-wise comments: a. Crop Loan-The District Level Technical Committee has reviewed the Scale of Finance for major crops grown in the district. Interest Subvention announced by State and Central Government has encouraged the farmer borrowers to regularize their accounts. The crop loan at subsidized rates to the farmers is having positive impact on GLC flow. The potential of ` lakh for crop loans in the district has been projected in the PLP b. Water Resources- Agriculture is the predominant activity in the district. Minor Irrigation structures have inherent advantages in distributing the available irrigation potential. The district has one major, four medium and three hundred seventy seven minor irrigation projects having command area of 1.43 lakh ha. However, only ha area have benefited during the year The area irrigated by working wells was ha. Daryapur, Morshi and Warud were categorized as overexploited by GSDA. Keeping this in view, potential of ` lakh has been projected under this sector. To achieve the target, slow progress in energization of pump sets, prolonged hours of load shedding etc., will have to be addressed. c. Farm Mechanization : Farm mechanization is important to accelerate the growth of both production and productivity. It involves judicious application of inputs by using agricultural machinery /equipments. Farm mechanization saves time and labour, cuts down crop production costs, reduces post-harvest losses, also promotes sustainable use of natural resources through machine assisted resource-conservation farming such as zerotillage, raised-bed planting, precision farming, drip irrigation or sprinkler irrigation etc. It contributes to improving the quality of life of rural work force and farm families. To tap potential of Farm Mechanization during an amount of ` lakh has been projected. d. Plantation and Horticulture - The horticulture sector plays an important role in the economy of the district. The blocks like Morshi, Warud, Chandur Bazar and Achalpur are prominent for production of fruit like orange, mosambi, guava, lime etc. Average production of orange and Mosambi is about three lakh MT. The fruit crops are grown in ha. Famous Nagpur orange has 59.2% of total area of horticulture crops in the district. Vegetable crops like brinjal, cabbage, cauliflower, tomato etc are grown in the district. Adequate planting material is available in the district. To tap potential of P&H during an amount of ` lakh has been projected. e. Animal Husbandry - 75% of farmers (having about 3.12 lakh ha) have land holdings below 2 ha size. Due to small rain fed holding, Animal Husbandry assumes special significance as an allied activity providing supplementary income to the farmers. Under Govt. sponsored programmes, non-creation of assets / poor recovery etc. are the factors that discouraged banks to lend. Formulation of Area Development Schemes, quality animals, more milk route, mini dairies, chilling/processing plants need to be encouraged through bank finance. The potential of ` lakh for Dairy, ` lakh for Poultry and ` lakh under Sheep / Goat / Pig sectors are projected for the year

3 3 f. Agriculture Infrastructure - There is a significant growth in Agriculture production and productivity over years. However, the producers/farmers continue to face hurdles in realizing reasonable returns for their produce. Inadequate infrastructure for post harvest services like cleaning, grading, sorting, storage and marketing of their surplus produce inter alia is the hurdle of the farming community. Soil and water are the two natural elements for agriculture. Therefore, there is a need to utilize these resources in a judicious and scientific manner. The land development activity generally, includes land leveling, water harvesting, soil and water conservation, soil fertility restoration, soil enhancement through land reclamation, on farm development works, organic farming techniques like use of bio-fertilizers, bio-pesticides and improved agronomic practices. The potential of ` lakh for Storage, ` lakh for land development, ` lakh for Soil conservation, ` lakh for watershed development and ` lakh under other activities are projected for the year f. Ancillary Activities - Agro processing is a vast sector comprising of food processing and agro industries dealing in production of non-food items. NABARD defines agro processing as any industry, which uses agriculture and allied products as raw materials. The agro processing activities are undertaken by processing of food grains, pulses, oilseed, fruits and vegetables, plantation crops, milk and milk products, meat and other animal products, cotton, any other agricultural products. The potential of ` lakh for food and agro processing and ` lakh under other activities are projected for the year g. Micro, Small and Other Priority Sector- MSMEs are an important employment generating sector, especially in the backdrop of dwindling employment opportunities in the agriculture sector. Development of MSME helps in capital formation, growth of entrepreneurship among local people, reduces migration and ensures inclusive growth. Keeping this in view, a potential of ` lakh has been projected for the year Export Credit : There is no scope for export credit in the district. We have not projected any potential in this sector. Education : Education is one of the factors that will ensure sustainable improvement in the standard of living of the people. The potential of ` lakh is projected for the year Housing : The large chunk of the housing shortage is in the low cost category. To much the demand and supply, housing developers and banking industry have a big role to play in semi urban and rural areas of the district. The potential of ` lakh is projected for the year Considering the total poor rural population of lakh in the district, it is estimated that there is a total potential for promotion and saving linkage of SHGs in the district. So far, SHGs have been promoted in the district, thereby leaving a gap for promotion of further 1772 SHGs. As on 31 March 2015 as much as 2324 JLGs were formed in the district and all JGLs were provide credit for some activities. In the district, there are 52 godowns of State and Central warehousing Corpotation with the storage capacity of MT and 249 godowns in the private sector with the storage

4 capacity of MT spread over all the blocks of the district. Similarly, 03 cold storages with the capacity of 5789 MT covering all the blocks of district are available. 12 main market yards and 20 sub market yards of APMC / controlled market yards in all the blocks. These market yards provide place for free and fair trading, grading and weighting facilities and also facilitates farmers to market their commodities. Activities like Producer Organization, Commercial Agriculture are in the evolving stage in the district. Critical infrastructure having a bearing on credit potential in the district may be included in State plan. Other projects having linkages with farmers livelihood activities like Soil Testing Labs at District sub-division, Strengthening of existing Planting material production units and Bio Control Laboratory may also be included in state plan so that farmers will get good facilities at block level. Private investment is required in cold storages, rural godowns, cold chains due to large quantity of orange production in Amravati district. Orange processing units are not available in the district. Capital formation is very low in the district. More financing should go to activities allied to agriculture. 4

5 Summary of Sector / Sub-sector wise PLP Projections with a pie diagram Sr.No. Sector PLP Projection (` in lakh) I Credit Potential for Agriculture A Farm Credit i Crop Production, maintenance and Marketing ii Water Resources iii Farm Mechanization iv Plantation and Horticulture v Forestry and Waste Land Development vi Animal Husbandry Dairy Development vii Animal Husbandry Poultry Development viii Animal Husbandry Sheep, Goat and Piggery, etc ix Fisheries x Others Activities Sub Total B Agriculture Infrastructure i Construction of Storage Facilities, Warehouses, Market yards, Godowns, Silos, Col Storagrde units/cold storage chains) ii Land Dev., Soil Conservation & Watershed Dev iii Others (Tissue culture, Agra bio -technology, Seed Production, Bio pesticides/fertilizers, Vermin composting Sub Total C Ancillary Activities i Food and Agro Processing Others (Loans to Coop. Societies of farmers for disposing of their ii produce, Agra Clinics/Agra Business Centres, Loans to PACS/FSS /LAMPS, Loans to MFIs for on lending) Sub Total Total Agriculture II Micro, Small and Medium Enterprises MSME Investment Credit MSME Working Capital Total MSME III Export Credit 0.00 IV Education V Housing VI Renewable Energy VII Others (Loans to SHGs/JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, Loans to state sponsored organisations for SC/ST) VIII Social Infrastructure involving bank credit Total Priority Sector

6 PLP Projections Farm Credit Agriculture Infrastructure Ancillary Activikties Micro, Small & Medium Enterprises Export Credit Education Housing Renewal Energy Others 6

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