Executive Summary The theme for the PLP 2016-17 is Accelerating the pace of capital formation in agriculture and allied sector The geographical area of the district is 12846 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 35.12 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 2014-15 was 91.83% and the credit flow under priority sector was ` 2945.05 crore as against the target of ` 3892 crore. Credit flow under crop loans was `1795.97 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 2014-15, deposits increased by 13.72% over the previous years. The loan outstanding as on 31.03.2015 increased by 13.61% as compared to the previous year. The overall CD ratio during 2014 15 stood at 91.71%. PLP Projections 2016-17 As per the realizable potentials estimated under PLP, the exploitable potential under all the sub sectors contained in the priority sector for the year 2016-17 works out to `7183.74 crore. It consists of `3261.48 crore crop loans, `1424.12 crore of term loans for agricultural and allied activities, `180.81 crore for Agricultural Infrastructure, `83.19 crore for Ancillary activities, `1070.08 crore under MSME, `398.75 crore for education, `438.60 crore for housing, `3.83 crore for renewable energy, `16.73 crore for social infrastructure and `306.14 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
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 2016-17 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 `536.17 crores respectively covering 1515 projects. The number of projects completed as on date was 926 and the potential created under micro irrigation was 39354 2
ha & irrigation potential created to an extent of 28824 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
Appenndix A to Annexure I Broad Sector wise PLP projections - 2016-17 (` lakh) Sr No. Particulars PLP Projections 2016-17 A Farm Credit 1 Crop Production Maintenance and Marketing 326148.00 2 Term Loan for agriculture and allied activities 142411.73 Sub total 468559.73 B Agriculture Infastructure 18081.12 C Ancillary actvities 8319.40 I Credit Potential for agriculture (A+B+C) 494960.25 II Micro Small and Medium Enterprises 107008.43 III Export credit 0.00 IV Education 39875.00 V Housing 43860.00 VI Renewable Energy 383.13 VII Others 30614.00 VIII Social Infrastructure involving bank credit 1673.30 Total Priority Sector (I to VIII) 718374.12 4
Appendix B to Annexure I Summary of Sector / Sub-sector wise PLP Projections -2016-17 (` lakh) PLP Pojections Sr. No Particulars 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 326148.00 ii Water Resources 11639.75 iii Farm Mechanisation 22274.32 iv Plantation and Horticulture (including sericulture) 16640.39 v Forestry and wasteland development 1715.63 vi Animal Husbandry - Dairy 32230.60 vii Animal Husbandry - Poultry 8218.75 viii Animal Husbandry - Sheep, Goat, Piggery 17754.00 ix Fisheries (inland) 607.68 x Others - Bullock Bullock carts,atl SHG etc. 31330.62 Sub total 468559.74 B Agriculture Infrastructure i Construction of storage facilities( Warehouses, Market yards, godowns, Silos, cold storage units/ cold storage chains) 8115.00 ii Land development, soil conservation, Watershed development 3520.00 Others ( Tissue culture, Agri Bio technology, seed production, Biopesticides/ fertilizers, vermicomposting iii 6446.12 Sub total 18081.12 C Ancillary activities i Food and Agro processing 8319.40 Sub total 8319.40 II Total Agriculture 494960.26 i MSME - Working Capital 15998.18 ii MSME Investment Credit 91010.25 Total MSME 107008.43 III Export Credit@ IV Education 39875.00 V Housing 43860.00 VI Renewable Energy 383.13 VII Others ( to SHGs/ JLGs, to distressed persons, to prepay non institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) 30614.00 VIII Social Infrastructure involving bank credit 1673.30 Total Priority Sector 718374.12 @ credit dispensed at port centre 5
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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 36 265 99 55 111 267 Regional Rural Bank 1 70 39 18 13 27 85 District Central Coop. Bank 1 19 10 6 3 90 Coop. Agr. & Rural Dev. Bank Primary Agr. Coop. Society Others 3 6 0 1 5 11 All Agencies 41 360 148 80 132 11 294 31 Mar 13 31 Mar 14 31 Mar 15 Growth(%) Share(%) 31 Mar 13 31 Mar 14 31 Mar 15 Growth(%) Share(%) Commercial Banks 2178600 2036780 2957539 45.21 63.30 83187400 76174100 99110900 30.11 92.10 Regional Rural Bank 542300 453363 1211629 167.25 25.95 6388200 5186500 6254600 20.59 5.81 Cooperative Banks 162200 454252 499675 10.00 10.70 1982200 6033400 2250500 62.60 2.09 Others 5 7 10 42.86 0.00 246 1520 1747 14.9.0016 All Agencies 2883105 1217332 1384402 13.72 100.00 91558046 87395520 107617747 23.14 100.00 31 Mar 13 31 Mar 14 31 Mar 15 Growth(%) Share(%) 31 Mar 13 31 Mar 14 31 Mar 15 Growth(%) Share(%) Commercial Banks 918792 945480 543191-42.55 67.49 72340000 75098300 85233014 13.50 85.58 Regional Rural Bank 82140 145392 122191-15.96 15.18 4215700 7897300 9742000 23.36 9.78 Cooperative Banks 216400 293530 139140-52.60 17.29 2773900 3878200 3804836-1.89 3.82 Others 319 0.04 696300 796000 818542 2.83 0.82 All Agencies 1217332 1384402 804841-41.86 100.00 80025900 87669800 99598392 13.61 100.00 CD Ratio During 2014-15 Cumulative 31 Mar 13 31 Mar 14 31 Mar 15 Deposit Credit Deposit Credit Commercial Banks 86.20 98.59 85.99 Commercial Banks Regional Rural Bank 66.00 152.27 155.76 Regional Rural Bank Cooperative Banks 222.82 64.28 169.06 Cooperative Banks Others - 46.85 Others All Agencies 93.30 87.40 91.71 All Agencies Commercial Banks 58439487 58.67% 35183448 35.32% 9592512 9.63% 15980 0.02% 5214826 5.23% Regional Rural Bank 7793600 80.00% 6883100 6.91% 28540 0.02% 25440 0.02% Cooperative Banks 3465415 97.07% 2947613 0.29% 3179424.00 3.19% 136749 0.14% Others 818542 100.00% All Agencies 70517044 70.91% 45014161 39.05% 12800476 12.80% 15980 0.02% 5377015 5.39% Commercial Banks 22583000 20420910 90.43 26840000 25944740 96.66 29842400 21158700 70.90 86.00 Regional Rural Bank 3287000 2755100 83.82 4150000 4212500 101.51 4889000 3702400 75.73 87.02 Cooperative Banks 2092000 2866290 137.01 2720000 434260 15.97 3251600 4458243 137.11 96.70 Others 838000 235820 28.14 890000 668700 75.13 937000 131135 14.00 39.09 All Agencies 28800000 26278120 91.24 34600000 31260200 90.35 38920000 29450478 75.67 85.75 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 2012-13 2013-14 2014-15 Average Achievement Ach[%] in last 3 years 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS of Deposit of loan 2012-13 2013-14 2014-15 Average Achievement Ach[%] in last 3 years Crop Loan 13450000 12858240 95.60 18000000 16654600 92.53 21000000 17959753 85.52 91.21 Term Loan (Agr) 1900000 1615020 85.00 4900000 6004800 122.55 5420000 5174197 95.46 132.48 Total Agri. Credit 2750000 1980030 72.00 22900000 22659400 98.95 26420000 23133950 87.56 65.02 Non-Farm Sector 3100000 1869310 60.30 3320000 5771700 173.85 3500000 3421362 97.75 110.60 Other Priority Sector 7600000 7955520 104.68 8380000 2829100 33.76 9000000 2895166 32.17 56.86 Total Priority Sector 28800000 26278120 91.24 34600000 31260200 90.35 38920000 29450478 75.67 85.75 Source : Lead Bank Office, Warangal & SLBC 8