PLP Warangal. Executive Summary

Transcription

1 Executive Summary The theme for the PLP is Accelerating the pace of capital formation in agriculture and allied sector The geographical area of the district is sq. kms and it is divided into 5 revenue divisions viz., Warangal, Mulug, Jangoan, Mahabubabad and Narsampet. The population of the district as per the provisional figures of 2011 census is lakh, which is 2.76 lakh higher than the population of 2001 census that constitutes a decadal growth of 8.52% that is below the State's decadal growth of 11.10%. The district comes under Central Telangana Zone with 51 mandals. The average annual rainfall of the district is 994 mm. The major soil types are Red soils, black soils and loamy soils. 80% of the rainfall is received through South West Monsoon and remaining 20% through North East Monsoon. Agriculture is the main stay of the economy of Warangal district, with 85% of the farmers being small and marginal farmers. The main crops grown in the district are Rice, Maize, Cotton and chillies. Total Gross Cropped Area and Net Sown Area is 7.63 lakh ha and 5.69 lakh ha respectively. The major source of irrigation in the district is tube wells and dug wells which occupy 76.67% of the total irrigated area followed by tanks (20.13%). The overall performance of banks under District Credit Plan during was 91.83% and the credit flow under priority sector was ` crore as against the target of ` 3892 crore. Credit flow under crop loans was ` crore as against the target of ` 2100 crore. The flow of credit has shown an increasing trend in the last 3 years particularly in FM, P&H, Dairy, Poultry, SGP, fisheries, storage and market yards and credit is fluctuating in some sectors like Minor Irrigation, Land Development, Forestry, Food and Agro processing etc. The district has a network of 265 branches of Commercial Banks, 70 branches of A.P. GrameenaVikas Bank, 19 branches of Warangal District Central Cooperative Bank, one branch of APSFC and 69 Primary Agricultural Cooperative Societies. During , deposits increased by 13.72% over the previous years. The loan outstanding as on increased by 13.61% as compared to the previous year. The overall CD ratio during stood at 91.71%. PLP Projections As per the realizable potentials estimated under PLP, the exploitable potential under all the sub sectors contained in the priority sector for the year works out to ` crore. It consists of ` crore crop loans, ` crore of term loans for agricultural and allied activities, ` crore for Agricultural Infrastructure, `83.19 crore for Ancillary activities, ` crore under MSME, ` crore for education, ` crore for housing, `3.83 crore for renewable energy, `16.73 crore for social infrastructure and ` crore under others, including SHG, JLG, PMJDY, etc. Major constraints & Suggested action points Major constraints are low crop diversification, indiscriminate use of fertilisers& pesticides, low farm mechanisation, inadequate capital formation, poor recovery in Govt. sponsored programmes, availability of non adequategodown space (estimated storage gap of 1.87 lakh MT) & other marketing infrastructure etc. Availability of inputs & minimum support price to farmers Considering the land holding pattern and also the problem of fragmented holdings, banks may have to promote JLGs and extend credit facility to tenant farmers/sharecroppers and marginal farmers. Govt. may encourage organic farming practices so as to reduce the excess use of fertilizers and pesticides by farmers. 1

2 Technology innovations in crop production & management SRI paddy, drum seeder, etc. In view of depletion of groundwater, there is an imminent need to recharge the ground water, bring in proper legislation and usage of water saving devices. Scientific storage, supply chain management & market linkages Dairy loans to be encouraged on a large scale with tie-up arrangements with Milk Cooperative Societies. Credit flow for sheep farming is to be supported by a collective recovery effort by banks together with development agencies Establishment of storage facilities close to farm gate Post harvest credit facilitation by way of pledge finance against Negotiable Warehouse Receipts (NWRs). Use of non conventional energy sources particularly solar power & financing by banks for Solar Pumpsets for Irrigation. to MSME sector under CGTMSE and grant under technology upgradation scheme Formation of Farmers Producer Organisations Area based schemes Considering the large number of small and marginal farmers and people below poverty line and as also the extensiveness of agriculture and rural development there is a need for promoting single purpose small scheme on a cluster basis which was aggregated into area development scheme. Area development schemes on dairy, sheep & banana cultivation (Tissue culture) have been prepared in consultation with line departments & Banks. These schemes may be encouraged by banks in the identified clusters which would also facilitate planning and execution of infrastructure facilities viz., backward and forward linkages for full realization of the benefits of the scheme. Highlights of developments / initiatives having bearing on the credit flow NABARD has taken up many developmental initiatives viz., 28 watershed development programmes under distress district package, 11 IGWDP watershed projects & 3 TDF projects and banks are expected to meet the credit needs in treated watershed projects. Other initiatives including promotion of JLGs, godown accreditation and technology interventions etc., would have direct bearing on the credit flow. Under PODF scheme NABARD has taken initiative for developing PACS as a one stop shop unit for meeting all the needs of the farmers like providing agriculture implements on hire basis, enabling purchase of inputs, having good quality storage capacity as per Negotiable Warehouse Receipt system, marketing facilities, etc. NABARD/NABCONS accredited four PACS godowns and created awareness among farmers on NWR financing and scientific storage of commodities. Thrust Areas Thrust areas for such as JLG / SHG financing, financing of post harvest infrastructure, mini processing units, Producer Organizations, NWRs, area based schemes etc. Infrastructure - Government & Private investments Infrastructure development is a necessary pre-condition for integrated rural development in the district. Rural Infrastructure Development Fund (RIDF) serves as a supplement to the efforts being made by State Governments in this direction. The cumulative sanctions and disbursements under RIDF Tranche I to XX are `878.94crore and ` crores respectively covering 1515 projects. The number of projects completed as on date was 926 and the potential created under micro irrigation was

3 ha & irrigation potential created to an extent of ha through LIS/ Minor Irrigation & Medium Irrigation Projects. Nearly 70% of the RIDF projects were implemented towards development of irrigation, roads; Comprehensive Land Development Project works which would help for development of agriculture. The critical infrastructure required for the district are water harvesting structures, micro irrigation, custom hiring and agro service centers etc. Private investments are required in rural godowns, cold storages & seed processing industries and other post harvest infrastructure. These will be capable of creating wide and big impact leading to increased production and productivity, better price realization by farmers there by higher credit off take. Conclusion There is a need for a coordinated approach for enhancing capital formation, strengthening of SAMIS reporting system, better monitoring and review at JMLBC, DCC meetings, effective implementation of financial inclusion plans including coverage of Oral Lessees, Tenant Farmers into Joint Liability Groups. 3

4 Appenndix A to Annexure I Broad Sector wise PLP projections (` lakh) Sr No. Particulars PLP Projections A Farm Credit 1 Crop Production Maintenance and Marketing Term Loan for agriculture and allied activities Sub total B Agriculture Infastructure C Ancillary actvities I Credit Potential for agriculture (A+B+C) II Micro Small and Medium Enterprises III Export credit 0.00 IV Education V Housing VI Renewable Energy VII Others VIII Social Infrastructure involving bank credit Total Priority Sector (I to VIII)

5 Appendix B to Annexure I Summary of Sector / Sub-sector wise PLP Projections (` lakh) PLP Pojections Sr. No Particulars I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing ii Water Resources iii Farm Mechanisation iv Plantation and Horticulture (including sericulture) v Forestry and wasteland development vi Animal Husbandry - Dairy vii Animal Husbandry - Poultry viii Animal Husbandry - Sheep, Goat, Piggery ix Fisheries (inland) x Others - Bullock Bullock carts,atl SHG etc Sub total B Agriculture Infrastructure i Construction of storage facilities( Warehouses, Market yards, godowns, Silos, cold storage units/ cold storage chains) ii Land development, soil conservation, Watershed development Others ( Tissue culture, Agri Bio technology, seed production, Biopesticides/ fertilizers, vermicomposting iii Sub total C Ancillary activities i Food and Agro processing Sub total II Total Agriculture i MSME - Working Capital ii MSME Investment Credit Total MSME III Export Credit@ IV Education V Housing VI Renewable Energy VII Others ( to SHGs/ JLGs, 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 credit dispensed at port centre 5

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7 District - WARANGAL State - TELANGANA Lead Bank - STATE BANK OF INDIA No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Banks/Soc. 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 Mar Mar Mar 15 Growth(%) Share(%) 31 Mar Mar Mar 15 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies 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 During Cumulative 31 Mar Mar Mar 15 Deposit Credit Deposit Credit Commercial Banks Commercial Banks Regional Rural Bank Regional Rural Bank Cooperative Banks Cooperative Banks Others Others All Agencies All Agencies Commercial Banks % % % % % Regional Rural Bank % % % % Cooperative Banks % % % % Others % All Agencies % % % % % Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies Broad Sector Priority Sector to Agr. Sector to Weaker Sections under DRI Scheme to Women Target Target No. of accounts 3. LOANS & ADVANCES OUTSTANDING No. of accounts Banking Profile 1. NETWORK & OUTREACH (As on 31/03/2015) 2. DEPOSITS OUTSTANDING 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Achievement Ach[%] in last 3 years 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS of Deposit of loan Average Achievement Ach[%] in last 3 years Crop Loan Term Loan (Agr) Total Agri. Credit Non-Farm Sector Other Priority Sector Total Priority Sector Source : Lead Bank Office, Warangal & SLBC 8