POTENTIAL LINKED CREDIT PLAN , BEED DISTRICT EXECUTIVE SUMMARY

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1 POTENTIAL LINKED CREDIT PLAN , BEED DISTRICT General EXECUTIVE SUMMARY NABARD has been preparing Potential Linked Credit Plan (PLP) for the district annually which forms the basis of the Annual Credit Plan for the banks operating in the district. The Potential Linked Credit Plan (PLP) of the district assesses in financial terms, taking into account the present and emerging potentials for various activities in Priority Sector, infrastructure facilities and other support services existing/ planned, both by Government and Non-Government agencies. Developments in the area of Credit Planning The credit projections are made by identifying long term potentials for each activity/ sub sector and arriving at the exploitable potential. In this respect, PLP is dovetailed with District Credit Plan (DCP), Comprehensive District Agriculture Plan (CDAP) and Integrated District Plan. The PLP exercise gives insight into the thrust areas/ sectors in district and also focus on what the PLP envisages to achieve in the plan for the year , like increased credit flow, development of desired sectors/ activities, greater outreach of SHG/ JLG, Financial inclusion programmes, etc. As per the Reserve Bank of India (RBI) guidelines, the PLP would form the basis of the Annual Credit Plan (ACP) for the banks operating in the district. Beed district Total geographical area of the district is lakh Ha, of which Gross Cropped Area (GCA) is around 8.07 lakh Ha. Net Sown Area (NSA) is 7.43 lakh Ha. Cropping intensity is 109 %. The average land holding is 1.58 Ha. The gross irrigated area is 2.35 lakh Ha (29.1 % of GCA) and net irrigated area is around 1.71 lakh Ha (23.01 % of NSA). The last five years average GCA under Kharif is 5.52 lakh Ha (66.74 %), area under Rabi is 3.79 lakh Ha (45.84 %) and area under summer crop is 3200 Ha (0.39 %). Jowar, Bajra, Soyabean, Tur, Cotton and Sugarcane are main crops in the district. Rabi crops are mainly Jowar, Wheat, Gram, Oilseeds, etc. Agro Processing activities consist of sugar mills, oil mills, dal mills, Cotton Spinning & Ginning Mills, etc. Gross Per Capita District Income during was Rs as against Gross Per Capita state Income of Rs for the State of Maharashtra. The proportion of Primary sector comprising of Agriculture, Forestry and Fisheries; is 25.7%, Secondary sector activities 15.7% and Tertiary Sector i.e Service and Business activities is 58.6 % in the total income of the district. The low per capita income when compared with State indicates low standard of living of masses in the district. The proportion of primary sector (agriculture and allied activities) and secondary sector (industry and non farm sector) explains scope for development of these sectors. This can be corrected by preventiing scale migration of nearly 4 lakh people from the district as cane harvesting labourers to neighboring districts/ States. Potential for bank credit An aggregate potential of Rs crore has been projected for the district for the year , registering a growth of 43% over that of the previous year. Comments on major sectors are brought out in the following paragraphs: 7

2 Crop Loan: Credit potential for crop loan which includes crop husbandry, Post harvest/ household/ Consumption requirements and Repairs and maintenance expenses of farm assets has been assessed at Rs crore (55.7% of total PLP projections) Loan for crop cultivation is estimated at Rs crore of which loan for growing food crops i.e. cereals, Pulses & oilseeds has been assessed taking into consideration to changing cropping pattern and availability of irrigation. Considering the past trend, credit projection of Rs crore has been made for cotton, soybean and sugarcane crops. Out of 5.50 lakh land holders, banks have covered about 4.18 lakh by issuing KCCs. In view of large number of farmers seeking bank loan and comparatively poor staff strength of rural branches, Joint Liability Group Mechanism may be adopted for financing crop loans to farmers groups. There is a need for giving boost to Capital investment in agriculture and allied sector activities. The potential for Term Finance to agriculture from banks in various sub -sectors has been assessed for Rs crore for the year , which is 10.60% of total PLP projection. Water resources: There are two major irrigation projects viz Jaikwadi (Majalgaon) and Manjara (Dhanegaon), 7 medium, 252 minor irrigation projects and 79 storage tanks in the district having total command area of Ha. Out of existing wells in the district, 4879 wells are in command of irrigation projects where as balance wells in non command area and therefore need recharging. The potential for private investments through bank finance for dug wells/ Bore wells and water lifting and water conservation/distribution systems i.e. pumpsets, pipeline and drip/ sprinklers, has been assessed at Rs crore for the year , which is the major component of PLP projection under agriculture term finance.. Land Development : Bankers in watershed areas to reassess the potential activities in the post watershed development period and frame suitable composite product covering production and investment credit needs of farmers on the lines of revised KCC guidelines. In view of drought like situation prevailing in the district, the activities like farm ponds, graded bunding/ farm bunding, etc are being planned by Government under various watershed development and EGS programmes. Organic agriculture gives option of developing viable and sustainable agro-ecosystem farming through use of farm inputs and outputs. Organic farming need to be promoted in respect of export oriented crops like vegetable, fruits, etc. A certifying laboratory need be set up in PPP model. Farm Mechanisation : The level of farm mechanization is low in the district. There is a great scope for mechanisation in the district, especially in case of crops like cotton, sugarcane, soyabean and horticultural crops like citrus, etc. Credit potential has been assessed for tractors, harvestor combine, etc. Tools, implements and machineries would improve efficiency and reduce drudgery of agricultural labour. Second hand tractors may be financed as per requirement. Plantation & Horticulture: Area under fruit crops is about Ha, vegetable crops ha and floriculture and other crops 700 ha. There exists vast scope for Dry land Horticulture, nursery raising and post harvest infrastructure like Pack house, pre cooling, cold storages, ripening chambers, etc. Potential has been assessed for strengthening of infrastructure for post harvest handling of produce, transportation and marketing through bank credit/ subsidy linked credit schemes. Sericulture : Climatic conditions are favourable for mulberry plantation in all the Talukas of and there is a wide scope to develop this activity. Recently the first State Government approved cocoon market was inaugurated at Neknoor in the Beed district which would give boost to this sector. About 1000 families are engaged in this 8

3 activity. Bank finance is intended for increasing area of mulberry based silkworm rearing under bivoltine hybrids so as to increase production and productivity. Forestry and Wasteland Developemnt: Total forest area is only sq.km. which was around 2.20 % of the total geographical area of the district. There is Ha cultivable wasteland and ha fallow land besides permenant pasture/ grazing land of Ha. With the coordinated efforts of Forest Deptt, Social Forestry Dept, NGOs, Panchayat and farmers, the tree cover on this land can be increased. Keeping in view the environmental and commercial benefits of forestry schemes, banks need to support viable schemes like nursery raising, integrated agro-forestry on farm land. Formulating scheme for developing forest of commercially significant trees on community land can be explored. Animal Husbandry: Dairy is main supplementary activity for the farming community from the view point of agricultural sustainability and nutrition security. Banks should encourage entrepreneurs to set up units under the Dairy Entrepreneurship Development Scheme (DEDS)/AMIGS of GoI and innovative schemes of State Government. Under Poultry Sector, commercial layer and broiler units in coordination with hatcheries/contract farming agencies and infrastructure for processing, marketing, sale of poultry products can be promoted with bank finance and support under Venture Capital Fund scheme (VCF) and innovative schemes of State Government. Poultry breeding farms with LIT birds can be promoted as an income generation activity through SHGs in coordination with banks. Extension services as regard to health care techniques, management of poultry units, etc,. are required. Sheep/Goat/Pig rearing activity is pursued all over the district. Commercial goatary under semi-intensive system i.e. Stall Fed or Semi Stall Fed goat rearing / breeding offers good scope in the district. This activity can be promoted with bank finance under contract farming mode and these units can act as backward linkage for supplying stock of quality animals. Extension machinery of AH Deptt should arrange training of shepherds in scientific management of sheep on an extensive scale. The projection of bank credit for various activities under AH sector comprising of Dairy, Poultry and Sheep/Goat rearing is made for crore, which constitutes 26% of Agriculture Term Loan projection for the year Fisheries: Fishing activity is being pursued by rural community in many parts of the district. An estimated total water spread area of Ha has been brought under this activity. Pond culture in marginal areas of the reserviour and cage culture within the reserviours can be tried with bank finance. Suitable training may be imparted to the farmers to maintain and use farm ponds for fish culture. Storage Godown and Market Yard: Storage and Market Yard facilities would ensure remunerative prices to producers of agricultural and allied products. Govt has been emphsizing the need for creation of additional rural godown capacity. Agriculture department should make Taluka wise scientific assessment of storage capacities required in the district for creation of additional storage capacity. Grain godowns at village level would avoid distress sale by farmer and also enable farmers to take pledge loan from the banking system. Considering the response for Credit Linked Subsidy Scheme (CLSS) of GoI for Rural Godown and Marketing Infrastructure (ISAM), credit potential has been assessed at Rs crore, which constitutes 20% of Agriculture Term Loan projection for the year MSME Investment (incl working capital): Development of this sector is affected due to non -availability of infrastructure like rail and road connectivity, power supply etc. About a half of the SSI units are sick. New MIDC in Majalgaon, Textile Park in Majalgaon, ITI in Dharur, three clusters viz Wadwani Textile cluster, Oil mill cluster Beed and Cotton cluster Georai-Beed are positive developments. Banks may enhance credit flow to micro enterprises under Govt sponsored programmes. The projection of bank 9

4 credit for various activities under MSME sector, including investment credit and working capital is made for Rs crore. Food and Agro Processing: The district is lacking in post harvest handling and marketing infrastructure like grading, pre-cooling, packing and cold storage facilities for fruits and vegetables. However due to the large scale production of the pulses, soybean and cotton, vast potential is available for setting up of dal mills,oil/mills, cotton ginning factories and jaggary making units. Suitable training prorammes for prospective entrepreneurs on preservation techniques, product diversification, packaging and labeling norms, etc. need be arranged. The projection of bank credit for various activities under Food and Agro Processing both for investment credit and working capital is made for Rs crore. Other Priority Sector: OPS Activities include Export credit, Infrastructure, housing, education, transport operators, professionals and self-employed, etc. Suitable bank finance schemes to support improving Human Development Index (HDI) values viz education, health, etc may be introduced. The projection of bank credit for various activities under the sector is made for Rs crores. 10

5 APPENDIX I DISTRICT MAP 11

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