EXECUTIVE SUMMARY. Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under:

Transcription

1 A. Introduction EXECUTIVE SUMMARY Banaskantha is primarily an agricultural district with Bajra and Potato as the predominant crops. The other major crops cultivated are Mustard, Castor, Cumin, Seasamum, etc. About 52% of land holdings are with small and marginal farmers and the average size of the holdings is 2.67 Ha. The Potential Linked Credit Plan (PLP) for has been prepared aligning with the revised RBI guidelines on Priority Sector Lending. It estimates credit flow of Rs lakh, of which, Crop Production sector has a major share of % at Rs lakh. Term loan under agriculture is assessed at Rs lakh accounting for about 31.91%. Under MSME, Rs lakh has been assessed as potential forming 2.70 % and balance at Rs lakh has been estimated for other sectors like Exports, Education, Housing, etc. The activity-wise and block-wise assessment of potential is presented in Annexure I. The PLP projection for is higher by Rs lakh when compared to the PLP for the year representing an increase of %. Further, the PLP projection is higher by Rs lakh when compared to the ACP target for the year Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under: B. Sector-wise comments on major sectors 1. Crop Production, Maintenance and Marketing Agriculture is the main source of livelihood for the rural people of Banaskantha district. The major obstacles affecting the progress and productivity of the district are depleting soil fertility, salinity and sodicity in Vav, Tharad, Bhabbar and Deodar talukas, Inadequate availability of quality seeds, difficulty in timely operations due to shortage of agriculture labour and lack of training and marketing. Adoption of advanced technologies for the restoration of soil health, mechanization, and cultivation of suitable remunerative crops, effective pest and disease management are essential to step up the agricultural production. Modern methods of cultivation like Precision farming for Vegetables, Sprinkler irrigation for pulses etc. need to be adopted for increasing production and productivity. Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes. 2. Water Resources and Land Development As monsoon continues to be erratic, need for greater focus lies in water resource management. The irrigation utilisation in the District on an average is 50% of potential created. The major reasons for under-utilisation are (i) Low water yield in the reservoir, (ii) Irrigating higher percentage of crops that require more water, (iii) Poor maintenance of the infrastructure due to financial constraint. Farmers need to be incentivized to save water by adopting suitable cropping pattern on their farms. There is a need for conserving soil moisture security so that more crop per drop can be achieved. 3. Farm Mechanisation Farm Mechanization has a very important place among farm sector activities in the district. Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. Banks may increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment. 4. Plantation and Horticulture Agro-climatic conditions, soil, and water availability, marketing opportunities make it suitable for development of horticulture sector in the district. Horticulture crops could be encouraged as an alternative to the traditional cropping pattern in the district. Vegetables and Floriculture may be encouraged under modern methods like Green house/controlled conditions with bank credit. The Departments of Horticulture and Agriculture may popularize suitable horticulture crops for development in cultivable wastelands and saline/alkaline areas. Standard seed production of potato 1

2 needs to be encouraged in the district. 5. Animal husbandry Dairy farming is the most important subsidiary occupation in the district as it provides gainful employment throughout the year to the rural folks. As dairy offers quick returns and near stable prices, banks may finance liberally ensuring tie-up arrangements with Dairy farms/societies. Banks may also encourage farmers to take up calf rearing and fodder cultivation, as viable activities with financial assistance. Poultry farming has not created desired impact in the district due to higher feed cost, poor management and economies of scale. Setting up of wool procurement and processing centre can give a boost to the sheep, goat and piggery sector. C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc. NABARD through its various developmental initiatives like watershed development in Wav and Tharad talukas, promotion of farmers clubs in the entire district, monitoring of credit flow under various sectors have been making coordinated efforts at enhancing capital formation in agriculture so as to attain sustainable agricultural growth. NABARD has also been formulating banking plans and Area Based Schemes in coordination with Lead Bank, other banks, line departments and other important stake holders to give thrust to the identified sector/activity by enhancing term loan disbursements. GoI has established the National Adaptation Fund on Climate Change (NAFCC) with a budget provision of Rs.350 crores for the year and NABARD has been appointed as National Implementing Entity (NIE) responsible for implementation of adaptation projects under the Fund. D. Thrust areas for : The PLP through its various initiatives aims to give a major impetus to the inclusive economic and social upliftment of rural poor i.e. landless and tenant farmers and particularly women through the SHG and JLG mode. Further, to cater to the food security need of the country, major emphasis has been given to the creation of storage infrastructure both dry as well as cold in rural and semi urban areas. Similarly to prevent waste-age of perishable commodities, postharvest infrastructure through various entities particularly Producers Organization is the need of the hour which has been highlighted in the relevant sections. E. Conclusion The major driver of private sector capital formation is investment credit. Immediate thrust is required to raise its share in the total agriculture credit. The document, has therefore, been prepared with emphasis on accelerating the pace of capital formation in agriculture and allied sectors. This goal can be achieved with the coordinated efforts of all the stakeholders. 2

3 BROAD SECTOR-WISE PLP PROJECTIONS Appendix A to Annexure 1 (Rs. Lakh) Sr.No. Particulars PLP Projections A Farm Credit I Crop Production, Maintenance and Marketing (Crop Loan) Ii Term Investment for Agriculture and Allied Activities (Agri. Term Loan) Total (i + ii) B Agriculture Infrastructure C Ancillary Activities I Credit Potential For Agriculture (A+B+C) II Micro, Small and Medium Enterprises III Export Credit IV Education 1134 V Housing VI Renewable Energy 3580 VII Others 1430 VIII Social Infrastructure involving Bank Credit 3581 Total Priority Sector (I to VIII)

4 Appendix B to Annexure 1 Summary of Sector / Sub-sector wise PLP projections (Rs. lakh) S.No. PARTICULARS Projection I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing ii Water Resources iii Farm Mechanization iv Plantation and Horticulture 8019 v Forestry and Waste Land Development 434 vi Animal Husbandry Dairy Development vii Animal Husbandry Poultry Development 189 viii Animal Husbandry Sheep, Goat and Piggery Development 167 ix Fisheries Development 24 x Others - Bullock, Bullock cart etc 2280 SUB TOTAL B Agriculture Infrastructure i Storage Facilities ii Land Development, Soil Conservation, Wasteland Development iii Others - Tissue culture, Agri bio-technology, Bio pesticides/fertilizers, vermin composting 234 SUB TOTAL C Ancillary Activities i Food and Agro Processing ii Others -Loans to Coop Societies, Agri Clinic/Agri Business Centres, Loans to PACS/LAMPS/MFI 9296 SUB TOTAL TOTAL AGRICULTURE II Micro, Small and Medium Enterprises i MSME - Investment Credit 9647 ii MSME - Working Capital 7963 TOTAL MSME III Export Credit IV Education 1134 V Housing VI Renewable Energy 3580 VII Others - Loans to SHG, JLG, PMJDY etc 1430 VIII Social Infrastructure involving Bank Credit 3581 TOTAL PRIORITY SECTOR

5 DISTRICT PROFILE Unique features of the district The Banaskantha district is the third largest district of Gujarat situated in the North of the State between 23.49' & 24.42' North latitude and between 71.01' & 73.0' East Longitude with geographical area of Sq.km. It is situated at meter above sea level and in the North it is bounded by Marwar and Sirohi area of the Rajasthan, in the South by parts of Mehsana & Patan districts, in the East by Sabarkantha and Kutch district in the West, which forms frontier with Pakistan. The major rivers in the district are the Banas, Saraswati and Sepo. As per 2011 census the district population was 3.11 million and the sex ratio stands at 936 females per 1000 males. The district is prone to successive droughts, which is detrimental to the development of agriculture, horticulture and allied activities in the district. The economy of the district is based on agro & food Processing, tourism, textile and mineral based industries (ceramics). The food Processing industry in the district has attracted 57% of the total investment in the district over the last two decades. The district ranks first in the state in the production of vegetables contributing nearly 17.67% to the total vegetable production of Gujarat. It is the largest producer of potatoes in the state and also leading producer of castor. It is one of the leading producers of Isabgul (Psyllium husk) in the country. It is also the 3rd largest producer of oil seeds in the state after Junagadh district and Jamnagar district. The district has rich mineral reserves including limestone, marble, granite, building stone and china clay. It accounts for almost the entire marble reserves (99.3%) of Gujarat and contributes about 15% to the total production of limestone in the state. The district is covered under NREGP, National Agriculture Development Programme (NADP), National Horticulture Mission, ATMA, National Food Security Mission and Border Area Development Programme (BADP). "Jyoti Gram" Yojana of GoG for providing round the clock threephase electricity to villages is also under implementation in the district. Predominant Activities prevalent in the district (i) Agriculture and Allied Activities (ii) Non-farm activities: Handloom, Ceramic, marble, Agro- processing etc. Major food/ commercial and plantation/ horticulture crops Potato, Cotton, Jowar, Bajra, Pulses, Groundnut, Sesamum, Castor, Mustard etc. are the main crops of Banaskantha District. Pomegranate, Papaya, Citrus, Ber, Date palm etc. are the horticulture crops. The agriculture inputs are easily available through traders, PACS and agri- business centers of GAIC. The KVK at Deesa carries out extension activities. These activities include Farmers Camps, FLDs, block demonstrations, crop-protection measures, use of improved implements, water/moisture retention measures, etc. Soil testing, farm planning and farm trials are also carried out. The S D Agriculture University, Dantiwada, provides the R&D support for the crop. A good number of godowns and cold storages are available for farmers. There are several regulated markets for marketing of the produce in the district. NABARD through its various initiatives like preparation of PLP and interventions in areas such as Farmers club, SHGs, JLGs, Watershed, RIDF, capacity building of bankers and Government officials etc has been, in the forefront leading other stake holders in the overall development of the district. 5

6 6 PLP Banaskantha

7 7 PLP Banaskantha

8 10 PLP Banaskantha