EXECUTIVE SUMMARY. Accelerating the pace of capital formation in agriculture and allied sector

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1 EXECUTIVE SUMMARY Keeping in view the need for accelerating the pace of economic growth and the important role of banks in capital formation, the theme of the PLP for the year is Accelerating the pace of capital formation in agriculture and allied sector I. District profile and credit assessment a) Dindigul district was established on 15 September 1985 by carving out of Madurai district. The District has 3 Revenue Divisions viz., Dindigul, Palani and Kodaikkanal, 8 taluks, 14 development blocks, 39 firkas and revenue villages covering a geographical area of sq. km. b) The district has extensive hilly areas with undulating plains. All along the western fringes of the district lie the Palani Hill ranges of the Western Ghats ranging in height from 1000 to 2700 meters MSL. The upper hills comprise of peaks like Perumalmalai and Vandarverimalai and are home to the beautiful, serene, salubrious hill station, Kodaikkanal. The lower plains are made up of hills like Thandikudi and Virupatchi. On the eastern fringes a large number of isolated hill ranges like Sirumalai, Alagarmalai, Karandamalai, Kodangimalai, Rangamalai, Pillayarnatham, Natham and Ayyalur are located. The rest of the district is characterised by an undulating plain covered mostly (85%) by red soil. Black earth covers the rest of the plains. c) A few seasonal rivers viz. Kodaganar, Kuthiraiyar, Manjalar, Palar, Porandalar, Parappalar, Santhanavardhini, Shanmuganathi, Varathamanathi and tributaries of the Vaigai, Amaravathi flow through the district. There are seven small dams in the district, viz., Varathamanathi, Palar-Porundalar, Kuthiraiyar, Parappalar, Kamarajar and Mavur with a total water storage capacity of million cft. and total canal length of km. d) Agriculture continues to be the mainstay of the rural people in the district. The gross cropped area stands at ha, the net sown area is estimated at ha. The main crops grown, in the district are maize, pulses, paddy, cholam, cumbu, groundnut, cotton, coconut, coffee, pepper, lemon, drum stick, mango, flowers and vegetables. Of the total crops grown, 66 per cent are rainfed and depend on the North East monsoon and tanks for agricultural operations. The district has 3 Different Agro Climates viz. tropical (plains), sub-tropical and temperate (Kodaikanal and Sirumalai) climate accommodating almost all kinds of Horticulture crops. Dindigul is one of the major producer of horticulture crops viz. fruits and vegetables in the State. e) Owing to the poor water availability and unsustainable agricultural income, farmers have taken up animal husbandry, mainly dairy activities for supplementing their income. It is pertinent to add that farmers are able to face acute drought conditions mainly because of supplementary income from dairy activities. Spinning mills (85) located in the district provides employed to rural people. f) The district has good banking network with 480 branches which includes 197 PACS operating in the district. All the banks have been providing credit for priority sector. The flow of credit for priority sector in the district has been showing a health trend for all the sectors of the economy as may be observed from the following data on ground level credit for the last 3 years : i

2 Purpose Agriculture Achievement during the last 3 years (`. in lakh) for crop loan term loan Total agriculture MSME sector Other Priority Sector Grand Total Sl. No g) Banking highlights: The Lead Bank of the district is Canara Bank. Banking and financial services are provided by 29 commercial banks, Dindigul DCCB (with 31 branches) & 197 PACS and Pandian Grama Bank (with 10 branches). The CD ratio in the district has always been more than 100% for the last 3 years and its was 142% during , indicating the need for initiating steps for mobilization of more deposits by banks. Under Financial Inclusion, 306 Panchayat villages were served by 286 bank branches and 248 BCs as on 31 March h) The Potential Linked Credit Plan for the year envisages a total credit outlay of ` crore for the priority sector keeping in view the past trend of ground level credit and potential available in the district. The projections for agricultural term lending has been estimated at ` crore out of the total agricultural credit at ` crore, keeping the theme of PLP for accelerating the pace of capital formation in agriculture and allied sector. The summary of the projections are furnished below : (`. in lakh) A Farm Credit Sector PLP Projections I Crop Production, Maintenance and Marketing 231, II B Term loans - Water Resources, Farm Mechanisation, Plantation & Horticulture, Forestry &Wasteland Development, Animal Husbandry (Dairy, Poultry, Sheep, Goat, Piggery, etc.), Fisheries Development, Others - Bullock, Bullock cart, etc.) Agriculture Infrastructure - Construction of storage facilities (Warehouses, Market Yards, Godowns,etc) - Land Development, Soil conservation, watershed development - Others (Tissue culture, Agri bio-technology, seed production, bio-pesticides/fertilizers, etc 134, C Ancillary activities - Food and Agro processing - Others ( to Agri-clinics / Agri-business Centres, to mfis for onlending, etc) Total Agriculture 438, ii

3 Sl. No II Sector Micro, Small and Medium Enterprises - Term Loan - Working Capital PLP Projections III Export Credit IV Education V Housing VI Renewable Energy VII Others ( to SHGs/JLGs, PMJDY, etc.) VIII Social Infrastructure involving bank credit Total Priority Sector 620, i) Dindigul is a drought prone district and therefore emphasis on lending for micro irrigation systems, animal husbandry to sustain the income of farmers and for creation of storage capacity has been provided for in the PLP for Further, the agroclimatic conditions are more suitable for horticulture crops and substantial area of the district is under tree crops, emphasis has also been laid on cold storage and processing of horticulture produce for better price realisation. Sector-wise comments on important sectors (a) Crop Production A variety of field crops, seasonal and perennial fruit crops, flowers, vegetable crops, plantation and spice crops are being grown in an area of 2.5 lakh ha. during the year The production credit (crop loan) requirement for these crops is estimated at ` lakh. The production credit forms 53 per cent of total agricultural sector projections for the year Banks may provide pledge loans against agricultural produce to farmers to get better prices. (b) Water Resources Ground water resources of the district have been exploited beyond sustainable levels. However, lending for micro irrigation systems and new pump sets would help efficient management of available water resources. The estimated credit potential for Minor Irrigation is ` lakh. (c) Plantation & Horticulture The district offers immense potential for horticulture crops viz. fruits, vegetables, flowers, spices. A few medicinal and aromatic plants can be commercially grown in the district. The district is included in the Agriculture Export Zone for mango. Processing of organically grown mangoes and other fruits and vegetables has been identified as having good potential as an EOU for fruit and vegetable processing has come up at Nilakottai industrial estate in the district. Floriculture also offers good potential in the plains where fragrance extraction units are established by private sector. Potential for extending institutional credit to the tune of ` lakh for development of the horticultural sector has been identified. iii

4 (d) Animal Husbandry The district is in the forefront of dairy development and in production of dairy products. The potential for rearing of livestock has been estimated at ` lakh. Similarly, poultry development in the district is gaining momentum. The total credit potential for the activity has been estimated at `.3570 lakh. The potential for bank credit for Sheep/goat/pig rearing activities assessed at `.5022 lakh. (e) MSME Sector Manufacturing activities undertaken by the SMEs deserve priority for credit as it is a thrust area for the development of the district. A number of EOUs and agro processing units that have come up in the district and the proposed establishment of a food park by SIPCOT at Nilakottai industrial estate augurs well for the agro and food processing industry. The credit needs has been assessed at ` lakh. II. Area Development Scheme a) Animal Husbandry mainly dairy sector has been providing livelihood and supplementary income to farmers in the district. In order to increase the income of the farmers it is proposed to implement Area Development Scheme in 3 blocks viz. Athoor, Batlagundu and Oddanchatram with the banking plan of ` lakh. UPNRM projects are also being implemented in these blocks based on dairy development sector. b) In order to meet the credit requirements of oral lessees / and tenent farmers, the concept of Joint Liability Groups have been introduced and is picking up in the district. Banks have come forward to finance JLGs for crop loan and the PACS / DCCB are in the forefront and during the year , 1167 JLGs with a bank loan of ` lakh have been promoted and financed by various banks. It is proposed to take up promotion of 2000 JLGs with ` lakh is proposed to be covered during the year III. Conclusion In order to achieve the theme of accelerating the pace of capital formation in agriculture and allied sector during the year , co-ordinated efforts from banks, Government Departments in disbursement of subsidies and concerted efforts of all the stake holders are required. Continuous monitoring of the progress of banking sector through SAMIS, regular review in Block Level Bankers Committee Meeting and District Level Bankers Meeting are of paramount importance. Further, the critical infrastructure required for the district mainly relating to strengthening the water bodies for utilising the rain water, increasing the recharge of ground water, recycling of water and reduce ground water pollution on account of discharge from leather tanneries need urgent attention. Creation of adequate storage capacity for getting better remunerative prices by farmers and for reducing the post-harvest losses need the support of bankers in the district. In order to achieve the goal of financial inclusion mission Pradhan Mantri Jan Dhan Yojana, banks may utilize the banking correspondence effectively for providing banking services to the customers at their door steps in unbanked areas. Banks may also enroll all the account holders under the Social Security Schemes of Govt. of India i.e. (i) Pradhan Mandri Bheema Suresksha Yojana, (ii) Pradhan Mantri Jeevan Jyoti Bheema Yojana and (iii) Atal Pension Yojana. iv

5 BROAD SECTORWISE PLP PROJECTIONS District Dindigul State Tamil Nadu (`. lakh) Sl. No A Farm Credit Sector PLP Projections i Crop Production, Maintenance and Marketing 231, ii Term loans - Water Resources, Farm Mechanisation, Plantation & Horticulture, Forestry &Wasteland Development, Animal Husbandry (Dairy, Poultry, Sheep, Goat, Piggery, etc.), Fisheries Development, Others - Bullock, Bullock cart, etc.) 134, Sub Total B Agriculture Infrastructure - Construction of storage facilities (Warehouses, Market Yards, Godowns,etc) - Land Development, Soil conservation, watershed development - Others (Tissue culture, Agri biotechnology, seed production, bio-pesticides/fertilizers, etc C Ancillary activities - Food and Agro processing - Others ( to Agri-clinics / Agri-business Centres, to mfis for on-lending, etc.) II Micro, Small and Medium Enterprises - Term Loan - Working Capital III Export Credit IV Education V Housing VI Renewable Energy VII Others ( to SHGs/JLGs, PMJDY, etc.) VIII Social Infrastructure involving bank credit Total Priority Sector 620, v

6 District Profile District - Dindigul State - Tamilnadu Division PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) No. of Sub Divisions No. of Blocks No. of Villages (Inhabited) No. of Village Panchayats Agro-climatic Zone Climate Soil Type Region IV - South Plateau and Hills Semi Arid Tropic Red soil 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported Normal Actual Forest Land Rainfall [in mm] Area Not Available for Cultivation Variation from Normal Permanent Pasture and Grazing Land 6946 Availability of Ground Water Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 7955 [Ham] Cultivable Wasteland Current Fallow Classification of Holding 5. DISTRIBUTION OF LAND HOLDING Holding Area Other Fallow Nos. % to Total Ha. % to Total Net Sown Area <= 1 Ha Total or Gross Cropped Area >1 to <=2 Ha Area Cultivated More than Once 3403 >2 Ha Cropping Inensity [GCA/NSA] 1.59 Total WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 165 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 150 Population Agricultural Labourers 467 Scheduled Caste Workers engaged in Household Industries 31 Scheduled Tribe Workers engaged in Allied Agro-activities Literate Other workers 442 BPL 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 561 Having brick/stone/concrete houses Having electricity supply 117 Rural Households 337 Having source of drinking water 117 Having independent toilets BPL Households 224 Having access to banking services Having radio/tv sets 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified Villages having Agriculture Power Supply Anganwadis Primary Health Centres Dispensaries 58 Hospitals 55 Villages having Post Offices Primary Health Sub-Centres 311 Hospital Beds Villages having Banking Facilities 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 290 Fertiliser/Seed/Pesticide Outlets [Nos] Agriculture Pumpsets[Nos] Villages having Primary Health Centres 302 Total N/P/K Consumption [MT] Pumpsets Energised [Nos] Villages having Potable Water Supply Certified Seeds Supplied [qtl] Agro Service Centres [Nos] Villages connected with Paved Approach Roads 340 Pesticides Consumed [lts] 3154 Soil Testing Centres [Nos] 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 1952 Plantation nurseries [Nos] Total Area Available for Irrigation (NIA + Fallow) Irrigation Potential Created Power Tillers [Nos] Threshers/Cutters [Nos] Farmers' Clubs [Nos] Krishi Vigyan Kendras[Nos] Net Irrigated Area(Total area irrigated at least once) INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 2345 Rural/Urban Mandi/Haat [Nos] 25 Wholesale Market [Nos] 8 Area irrigated by Wells Length of Pucca Road [Km] Godown [Nos] 214 Area irrigated by Tanks 6906 Length of Railway Line [Km] 270 Godown Capacity[MT] Area irrigated by Other Sources 952 Public Transport Vehicle [Nos] 450 Cold Storage [Nos] 8 Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] 1540 Cold Store Capacity[MT] Type of Processing Activity 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Food (Rice/Flour/Dal/Oil/Tea/Coffee) Sugarcane (Gur/Khandsari/Sugar) Fruit (Pulp/Juice/Fruit drink) Spices (Masala Powders/Pastes) Dry-fruit (Cashew/Almond/Raisins) Cotton (Ginnining/Spinning/Weaving) Milk (Chilling/Cooling/Processing) Meat (Chicken/Motton/Pork/Dryfish) Animal feed (Cattle/Poultry/Fishmeal) ANIMAL POPULATION AS PER CENSUS 2010 tentative [in '000] No of units Cap.[MT] Avg. Yield Crop 138 Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] 45 Paddy Millets Pulses Groundnut Gingilee Sugarcane (in canes) Vegetables Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India) 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of animal Total Male Female Cattle - Cross bred Veterinary Hospitals/Dispensaries [Nos] Disease Diagnostic Centres [Nos] Animal Markets [Nos] 5 82 Milk Collection Centres [Nos] Cattle - Indigenous Artificial Insemination Centers [Nos] Fishermen Societies [Nos] 5 Buffaloes Animal Breeding Farms [Nos] Fish seed farms [Nos] 1 Sheep - Cross bred Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos] 5 Sheep - Indigenous Dairy Cooperative Societies [Nos] 148 Poultry hatcheries [Nos] 10 Goat Improved Fodder Farms [Nos] Slaughter houses [Nos] 10 Pig - Cross bred 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous 1 2 Fish Production [MT] ( ) Per cap avail. [gm/day] 72 Horse/Donkey/Camel 5 6 Egg Production [Lakh Nos] Per cap avail. [nos/p.a.] Poultry - Cross bred Milk Production [lakh lts] 6 Per cap avail. [ml/day] Poultry - Indigenous Meat Production [MT] Per cap avail. [gm/day] Sources (if not mentioned against the respective item): Item Nos. 1, 6, 7, 9 & 10 - Latest Census ; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Survey ; Item No District Ind Centre/Dir. of Eco. & Stat.; Item No DACNET; Item No AH Census ; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. of Eco. & Stat.

7 Banking Profile Appendix - 2 Dindigul Tamil Nadu Lead Bank - Canara Bank District State - 1. NETWORK & OUTREACH (As on 31/03/2012) Total Rural Semi-urban Urban mfis/mfos SHGs/JLGs BCs/BFs Villages Households Commercial Banks Regional Rural Bank District Central Coop. Bank Coop. Agr. & Rural Dev. Bank Primary Agr. Coop. Society Others All Agencies No. of Banks/Soc. No. of accounts No. of Branches No. of non-formal agencies assoiated Per Branch Outreach 2. DEPOSITS OUTSTANDING Amount of Deposit 31-Mar Mar Mar-15 Growth(%) Share(%) 31-Mar Mar Mar-15 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [Rs. 31-Mar Mar Mar-15 Growth(%) Share(%) 31-Mar Mar Mar-15 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During Cumulative 31-Mar Mar Mar-15 Deposit Credit Deposit Credit Commercial Banks 128% 154% 140% Commercial Banks Regional Rural Bank 284% 297% 192% Regional Rural Bank Cooperative Banks 163% 160% 156% Cooperative Banks Others 74% 191% 193% Others All Agencies % All Agencies PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector to Agr. Sector to Weaker Sections under DRI Scheme to Women Amount Amount [ Amount Amount Amount Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Ach[%] in last 3 years Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Broad Sector Average Ach[%] in last 3 years Crop Loan Term Loan (Agr) Total Agri. Credit MSME SECTOR Other Priority Sector Total Priority Sector RECOVERY POSITION Demand [Rs. Recovery [Rs. Recovery [%] Demand [Rs Recovery [Rs. Recovery [%] Demand [Rs. Recovery [Rs. Recovery [%] Average Rec. [%] in last 3 years Commercial Banks Regional Rural Bank Cooperative Banks Others 0.00 All Agencies Sources : Lead Bank & SLBC