karimganj district, assam
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laHkkO;rk;q _.k ;kstuklaHkkO;rk;q _.k ;kstuklaHkkO;rk;q _.k ;kstuklaHkkO;rk;q _.k ;kstukPOTENTIAL LINKED CREDIT PLAN
(2006-2007)
ftyk %ftyk %ftyk %ftyk % djhdjhdjhdjheeeexxxxat]at]at]at] vlevlevlevleDISTRICT : KARIMGANJ, ASSAM
jk"Vh; d`f"k vkSj xzkeh.k fodkl cSadjk"Vh; d`f"k vkSj xzkeh.k fodkl cSadjk"Vh; d`f"k vkSj xzkeh.k fodkl cSadjk"Vh; d`f"k vkSj xzkeh.k fodkl cSadvle {ks=h; dk;kZy;vle {ks=h; dk;kZy;vle {ks=h; dk;kZy;vle {ks=h; dk;kZy;
y{eh Hkou] ikucktkj] xqokgkVh & 781001y{eh Hkou] ikucktkj] xqokgkVh & 781001y{eh Hkou] ikucktkj] xqokgkVh & 781001y{eh Hkou] ikucktkj] xqokgkVh & 781001National Bank for Agriculture and Rural Development
Assam Regional Office
Laxmi Bhavan, Panbazar, Guwahati - 781 001
Tel: 2540873, 2540875, 2523872, 2519247 Fax: 2541131
e-mail : [email protected]
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C O N T E N T S
Initiatives taken by NABARD for development of the districts.
Information on the selected commodity of the districtAnnexure VIII
Model Schemes relevant for the DistrictAnnexure VII
Unit cost for NFS activities finalised at District LevelAnnexure VI
Unit Cost CommitteeAnnexure V
Scales of Finance for different crops as approved by DLTCAnnexure IV
Sector wise Ground Level Credit Flow under Agri. and Allied activitiesAnnexure III
An Overview of Ground Level Credit Flow - Agency wiseAnnexure II
Activity wise / Block wise Potential Linked physical and financial estimatesAnnexure I
83Response from the farmersChapter VIII
75Policy initiatives of GoI/State Govt./RBI/NABARD and other agenciesChapter VII
71Performance of Credit agenciesChapter VI
67Role of Informal Credit Delivery SystemChapter V
63Support requirement for Government Sponsored ProgrammesChapter IV
56Infrastructure SupportChapter III
54IV. Other Priority Sectors
46III. Non-farm Sector Activities
4513. Other Allied Activities (Bullock/Bullock carts, etc.)
4312. Renewable sources of energy and waste utilisation
4211. Storage/Godowns and Market yard
3910. Fisheries
379. Sheep, Goat and Piggery
358. Poultry
337. Dairy Development
B. Investment Credit for Allied Activities
296. Forestry and Wasteland Development, Biodiesel & jatropha and Bamboo
Plantation & development
275. Plantation & Horticulture, MAPs & Sericulture
254. Farm Mechanization
213. Land Development
192. Minor Irrigation
A. Investment Credit for Agriculture
II. Investment Credit for Agriculture and Allied Activities
151. Crop loan
I. Sectoral Review and Potential projectionsChapter II
12IntroductionChapter I
11Summary of Detailed Sector-wise PLP Projections
10Summary of Broad Sector-wise PLP Projections
6District Profile
1Executive Summary
Page NoItemsChapter
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EXECUTIVE SUMMARY
The economy of the district is predominantly agrarian in nature engaging about 80% of the rural
work force. About 35.77% of the geographical area is under agriculture and the district is self
sufficient in major food crops, growing sufficient quantities of paddy besides, tropical fruits and
horticultural fruits like coconut, arecanut, banana, etc. However, further economic development
of the district needs creation of additional infrastructure in these sectors besides development of
agro-based industries and other support system with credit intervention.
The potential of credit flow for the year 2006-07 for Karimganj district has been estimated at
Rs.4611 lakh. Out of the total credit projection, Rs.416.00 lakh has been projected for seasonal
agricultural operations, Rs.317.20 lakh for term loan under agriculture and allied activities,
Rs.713.80 lakh for NFS and Rs. 3164.00 for other Priority Sector advances. Disbursements made by
banks under Priority Sector during last three years i.e. 2002-03, 2003-04 and 2004-05 were Rs.
878.76 lakh, Rs. 1739.73 lakh and Rs. 3519.32 lakh respectively. Improvement in Infrastructural
support, recovery percentage, development of entrepreneurial skills and strengthening of
cooperatives may boost up the credit flow in the district.
1. Short term Crop Loan
Karimganj district has some natural factors which contribute to maximum production of crops.
These are (a) fertile alluvial soil (b) high average rainfall with better distribution (c) low
evaporation and high residual moisture (d) Irrigation facilities with the installation of LLPs by
the irrigation department. Cooperative credit structure in the district is very weak to cater the
credit requirement of the farmers. Commercial Banks and RRB may come forward for financing
the short term credit requirement in the district. The potential that can be exploited during
2006-07 has been estimated at Rs. 416.00 lakh.
2. Minor Irrigation :
Due to low ground water table, STWs are not feasible in most parts of the district. The high cost of
digging DTWs discourage the farmers to go for such structures. Keeping in view the national
priority and availability of surface water in the district, 140 numbers of LLPs with the bank loan
of Rs.17.00 lakh have been assessed as potential for the year 2006-07. The district has a network of
rivers most of which are perennial and flow across all the blocks.
3. Dairy :
Although there are 8 milk cooperative societies but most of them are defunct. No milk route has beenidentified so far and no chilling plant has been set up in the district. To encourage the milk
production, existing milk cooperative societies need to be revitalised and new societies need to be
formed and milk routes identified.There is no demand for indigenous cow in the district due to low
milk yield. Though there is good demand for buffaloes but due to non availability of quality animals
in the district, farmers are not keen to buy buffaloes at very high price from other districts. Potential
that can be exploited during 2006-07 has been estimated at Rs. 32.55 lakh.
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4. Poultry :
Though there is good demand for eggs in the district, layer units set up by the farmers have not
been successful at all. The cost of the eggs produced locally is higher than the cost of eggs imported from other states, particularly Andhra Pradesh. The potential that can be exploited during
2006-07 has been estimated at Rs. 56.60 lakh.
5. Sheep/Goat/Piggery :
As there is no demand for sheep meat in the district, there is no scope for sheep rearing in the
district. The scope for piggery in the district seems to be negligible owing to religious factor.
The sector has to depend on neighbouring states of Mizoram, Manipur for market. There is no
organised market for piggery products within the district.However,the potential of Rs. 14.00
lakh has been estimated for goat rearing and piggery during 2006-07.
6. Inland Fishery :
The district Karimganj is endowed with enormous potential for development of Inland
Fishery in rivers (5500 ha), beels (8240 ha), ponds and tanks (3247 ha). The climatic condition
of the district is conducive for the fish farming. Almost 95% population in the district are fish
eaters and there are about 40,000 fishermen in the district who depend on this activity for
their livelihood. The district is self sufficient in terms of fish seed production. There are
regular fish seed markets at Nilam Bazar and other adjoining areas which supply fish seeds
to other district / states. Marketing of fish is not facing any problem due to heavy domestic
demand in the district itself. FFDA sponsors loan cases to banks for credit and also provides
subsidy to the fish farmers. The potential that can be exploited during 2006-07 has been
estimated at Rs. 57.65 lakh.
7. Plantation & Horticulture :
Considering physical features and agro-climatic conditions of the district, there is wide scope
for development of horticultural crops like Banana and Citrus and Arecanut, Coconut, Rubber
and Tea in plantation sector in the district utilising uplands, small hillock and wasteland. The
present area under horticulture crops is about 8938 ha. out of which Arecanut, Potato and
Banana accounts for 2345 ha., 1658 ha. and 1325 ha. respectively. The district has 27 Tea
gardens covering an area of about 800 ha. One cold storage unit with 6200 MT capacity has
been set up in the district. At least one more cold storage may be set up with 5000 MT capacity
in the district for storage of potatoes and other horticultural crops. The potential that can beexploited during 2006-07 has been estimated at Rs.44.37 lakh.
8. Medicinal & Aromatic Crops (MACs) :
There is not much scope for cultivation of MACs in the district. As per records available, till date
no farmers have approached for credit. However, DAO opined that Citronella can be grown if
farmers come forward. To make a beginning in the district, a small projection of Rs. 1.58 lakh has
been estimated in the updated PLP for 2006-07.
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9. Forestry :
Social Forestry Division supplies saplings to the farmers at subsidised rate for social forestry.
During 2004-05 they have supplied 145475 seedlings and propose to distribute 159800 free of cost
during 2006-07. Besides, seedlings are also sold to the public as per Govt. Policy of Rs. 2 per
seedlings.The Division proposes to raise 1500 ha. of Jatropha plantation during 2006-07.Cachar
Paper Mill, Panchgram has of late started promoting farm forestry in the private land in Barak
Valley Region by distributing bamboo seedlings from its own nursery as also through NGOs at
subsidised rate of Rupee one per seedlings. NABARD has formulated banking plan after
discussions with the officials of Cachar Paper Mill, bankers, NGOs and prospective farmers of
Barak Valley over an area of 2500 acre phased in three years starting from 2005-06. There is a
tie-up arrangement with Cachar Paper Mill for purchase of the bamboo from the farmers for their
consumption. The scheme did not perform well as mortality rate of the bamboo seedlings were as
high as 80 %. The Cachar Paper Mill proposes to encourage the farmers to undertake plantation
with rhizomes. Looking into the thrust given by the Govt. for cultivation of bamboo and jatropha,
potential of Rs. 37.30 lakh has been assessed for 2006-07.
10. Bio-Gas :
Bio-gas is one of the renewable and non-conventional sources of energy which helps reducing
dependence on firewood, commercial fuel, chemical fertilizer, etc. However installation of biogas
plants in the district has almost stopped as the implementing agency ( i.e.. DRDA) could not
release the subsidy amount for want of funds. The State Government may take initiatives in this
regard so that biogas plants are installed in rural areas.
11. Non Farm Sector (NFS) :
Various agencies like DIC, DRDA, KVIC, KVIB, Handloom and textiles, Artfed, Sericulture
Department are in the field of promotion of NFS activities through rural artisans, handloom
weavers and various small scale industries (SSIs) and Cottage and Tiny Village Industries
(CTVIs) in the district. Thrust must be given by all agencies for cluster approach. Motivation and
training for certain basic skills must be provided to the young prospective entrepreneurs through
EDPs for setting up their micro enterprises. The potential that can be exploited during 2006-07 has
been estimated at Rs. 373.80 lakh.
12. Government Sponsored Programmes
The position of implementation of SGSY and Margin Money Scheme of KVIC was satisfactory
whereas disbursement effected under PMRY is quite low. Proper identification of beneficiaries
and regular activity for right beneficiaries are desirable. Constant monitoring and supervision of
schemes including end-use of credit should be done. Emphasis may be given for promotion of rural
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micro enterprises on the basis of locally available raw materials and skills etc. Strategy should be
adopted for area based projects and group activities both under farm and non-farm activities.
Effective strategies for improving recovery performance of bank loans should be chalked out in
consultation with the banks and administrative machinery of the district.
13. Banking Profile
The district has 7 CBs (27 branches), 1 RRB (17 branches), 1 Apex Bank (3 branches), 1 SCARDB
(2 branches) and 1 PCARDB (1 branch). 34 branches are in Rural areas, 2 branches are in Semi
urban areas and 17 branches are in Urban areas. Total deposits with the banks and advances
outstanding in the district as on 31.3.2005 were Rs. 44900.29 lakh and Rs. 13610.45 lakh
respectively. C.D. ratio as on 31 March 2005 was 30.31%.
14. Infrastructure for support under RIDF :
As emerged during the course of pre PLP discussions with the District Administration and
concerned departments regarding development of infrastructure projects with assistance from
Rural Infrastructure Development Fund, it was suggested that around 530 km of rural roads
covering all the seven blocks of the district need to be constructed and 75 bridges need to be
replaced/reconstructed. Most of the SPT bridges are in deplorable condition and they need
replacement. Adequate no. of DTWs/ Community irrigation structures need to be constructed to
bring more areas under irrigation for better productivity. Karimganj district as a whole is flood
prone and various flood control measures are required to be taken up in the district. Four anti
erosion/flood protection embankments need to be constructed.
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District Map
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D - I
District Profile at a Glance- (As on 31 March 2005)
Name of the District : Karimganj
(1) Geographical Area (Sq. Km.) : 1809
No. of Blocks : 7
No. of Villages (inhabited) : 893
No. of Villages electrified : 745 (as per 1991 census)
No. of Villages connected
by all weather road (Km) : 331.25No. of Villages having
supply of potable water : 141
(2) Rainfall (mm) Normal Actual
3902 2003 2004
3670.1 3724.1
(3) Agro-Climatic Region & Zone :Barak Valley
(4) Population (in 000) (2001 Census)
(a) Male : 527
(b) Female : 498
(c) Total : 1025
(d) Population density /sq. km : 567
(e) Population below poverty line : 62%
(5) Classification of workers ( as per 1991census)
(a) Cultivators : 96051
(b) Of (a) Small & Marginal Farmers : 16381
(c) Agricultural labourers : 37036
(d) Artisans : 4152
(e) House-hold Cottage industries : 16859
(f) Allied Agro-activities : 20234
(g) Other workers : 25715
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(6) Land Utilisation (Area in ha.)
(a) Geographical area : 180900
(b) Net sown area : 64594(c) Forest : 54504
(d) Fallow land : 9513
(e) Land not available for cultivation : 39079
(f) Cropping intensity : 140.00 %
(g) The area brought under High
Yielding Variety of seeds :39515
(7) Size of holdings No. (%) Area (ha) (%)
Less than 1 ha. 15259 34.42 8965 9.28
Between 1 ha. & 2 ha. 15808 35.66 22889 23.69Above 2 ha. 13264 29.92 64764 67.03
Total 44331 100.00 96618 100.00
( Provisional figure as per 100%. Village survey conducted during 1995-96 )
(8) Irrigation (in ha.)
a. Net irrigated area : 7256
By Channels : 180
By Wells : 2551
By other sources (DTWs, etc.) : 4525
(9) Consumption of organic and chemical fertilisersand pesticides (Kg / ha.) : 17.33
(10) Agriculture Support facilities
Seed / fertilisers / pesticides depots : NA
Rural Markets / Mandis
No. Total Capacity
Rural Godowns :Nil Nil
Cold Storages :1 6200 MT
(11) Animal Husbandry (1997 Census)
a Plough animals : 1,03,253b Dairy animals
Cattle crossbred : 6476
Buffaloes : 20579
Indigenous cattle : 84747
c Sheep/Goat/Pigs
Sheep : 4711
Goat (above 1 year) : 61381
d Poultry
Hen : 266910
Ducks : 982548
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(12) Predominant economic activities of the district
Agriculture is the predominant economic activities of the district. Paddy is the major crop
of the district and covers 75 % of the total gross cropped area. Present average productionof rice is near about 1.54 MT per hectare. Agro - climatic condition of the district is
conducive for agriculture but agriculture practices followed are only traditional. There is
enough scope for modernisation and commercialisation of agriculture.
(13) Major food : Rice, Wheat and Peas
Commercial crops : Mustard, Potato, Ginger, Turmeric
Plantation crops : Tea
Horticulture crops : Coconut, Arecanut, Banana, Pineapple, Mango, Papaya, Lemon
(14) Special/additional/other features of the district relevant to credit estimates
of updated year.
Nil
(15) Other factors affecting the district rural economy and development of
various sectors viz. flood, drought, pest attack, hailstorms etc.
Recurrence of flood is the major factor affecting the crop production during kharif
season.
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D - II
Economic Indicators of the Credit Delivery System - Key Banking Statistics
(As on 31 March 2005)
37.65NANANANANANet NPA to total assets (%)19
691.4550.26104.33--36.81Overdue position18
37.6533.3263.25--0.3030 June 2005
36.230.4059.50-1.8030 June 2004
31.324.1060.60--2.7030 June 2003
DCB Position % of recovery as on17
22.2521.7124.94--25.22CD Ratio16
5.465.185.39--12.81% of Agrl. advances to
total advances
15
176.77266.978.78--97.67Loan outstanding perbranch14
2.693.241.26--NALoan outstanding per
account
13
53.9954.363.52--2.78b) 2005 over 2004 (%)
27.0122.3568.32-7.34a) 2004 over 2003 (%)
% increase in outstanding12
13,601.4511119.382189.89--301.18Total Loans o/s as on
31.3.2005
11
13.0312.1322.27-NA-3.99b) 2005 over 2004 (%)
9.497.8419.83-NA13.69a) 2004 over 2003 (%)
Growth in deposits10
8981378.51386.2--371.66Average deposits per
branch
9
44,900.2937219.866565.44--1,114.99Total depositsas on
31.3.2005
8
183353-298298Average No.of villages
covered per branch
7
20,0743717359040-501,839334,559Average population per
branch
6
668263--NANo.of loan accounts per
branch
5
3,2842,2201,064--NANo.of loan accounts (under
riority sector)
4NANANA-NANANo. of Staff per branch3
502717123Total
1793122c) Urban
21---1b) Semi Urban
311714---a) Rural
Branch Net work
502717123No.of Branches2
1171111No. of Banks1
TotalCom.
Banks
RRBPCARDBSCARD
B
Apex
Bank
ParticularsSl.
No.
* NA - Not available
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SUMMARY OF BROAD SECTOR WISE PLP PROJECTIONS 2006-07
DISTRICT : KARIMGANJ
STATE : ASSAM
(Rs. Lakh)
4611.00TOTAL PRIORITY SECTOR ( 3+4+5 )
3164.00OTHER PRIORITY SECTOR5
713.80NON FARM SECTOR AND WORKING CAPITAL4
733.20TOTAL PRODUCTION AND INVESTMENT CREDIT UNDER
AGRICULTURE AND ALLIED ACTIVITIES (1+2 )3
317.20TERM INVESTMENT FOR AGRICULTURE AND ALLIED
ACTIVITIES2
416.00CROP PRODUCTION1
Financial
ProjectionsSECTOR
Sl.
No.
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SUMMARY OF DETAILED SECTOR WISE PLP PROJECTIONS 2006 - 07
District : Karimgang
Name of the State : Assam
(Rs. Lakh)
17.00
1.45
19.70
45.9537.30
32.55
56.60
14.00
57.70
35.00
Nil
Nil
317.20
416.00
733.20
713.80
3164.00
4611.00
Minor Irrigation
Land Development
Farm Mechanisation
Plantation and HorticultureForestry and Wasteland
Dairy
Poultry
Sheep/Goat/Piggery
Fisheries
Storage/Godown
Biogas
Other (Agriculture)
Total Term Loan
Crop Loan
Total Agriculture Credit
Non-Farm Sector
Other Priority Sector
Grand Total (Priority Sector)
1.
2.
3.
4.5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
PLP ProjectionSectorSr. No.
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CHAPTER - I
Introduction
Credit Planning in India received focussed attention in development planning after
introduction of the scheme of Social Control over banks in 1967 and nationalisation of
14 major commercial banks in 1969. Adoption of area approach and introduction of
Lead Bank Scheme in the beginning of Seventies was the first attempt towards
decentralised credit planning with district as a unit of planning. Districts were
allocated to individual commercial banks which were to act as pace setters in the
designated districts in providing integrated banking facilities. Under the Lead Bank
Scheme, the designated bank was to prepare District Credit Plans (DCPs) in
consultation and coordination with other banks and Government functionaries
operating in the respective districts. Although the District Credit Plans (DCPs)
underwent several changes over the period, these plans, however, did not focus on the
potential existing at the ground level and the absorption capacity.
In the year 1988-89, NABARD took the initiative to prepare district-wise credit plan
exhibiting sector wise potential for agriculture and rural sector with a view to make
further improvement in district credit planning. These were named as Potential Linked
Credit Plans (PLPs). The basic objective of the PLP is to map the existing potentials for
development and evolve an appropriate mechanism through which such potentials could be
harnessed over a specified time frame. The PLP document attempts at making projections
of the credit requirements for different sectors in a district taking into account the existing
physical potential, availability of infrastructure, marketing support, absorption capacity
and other strengths & weaknesses of the rural credit delivery system. These plans aim at
reflecting, in a more realistic way, the micro or local needs, potentials and linkages
associated with various development agencies operating in the district. PLP, thus, depicts
the potential for harnessing human and natural resource endowments both over a short
and long term period and attempts to facilitate improving capital efficiency while
providing meaningful directions to the flow of ground level credit.
The broad strategy for formulation of PLPs envisages estimation of long term potentials (in
terms of physical units) duly phased out over annual duration in each sub sector of
agriculture and rural development taking into account the natural and human resource
endowments. The approach adopted for preparation of PLPs focuses on bottom-up
planning process. The potentials are first estimated block-wise and then aggregated to form
the PLP for the district as a whole. For the purpose of translating the potentials into credit
plans, the infrastructure requirements are identified and compared with the currently
available infrastructure. The requirement of infrastructure support is also assessed on the
basis of various developmental schemes / programmes being run or proposed by Central
Government / State Government / Local Bodies, etc. in the districts. The past trends of
investment made in district, Sub-Sectors, their relative growth rates, capabilities andconstraints in implementation, etc. were also kept in view while phasing the identified
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potentials. NABARD has been constantly endeavouring to introduce refinement in the
methodology of preparing PLPs and making improvement in its contents so that the
PLP could be used as an essential support / reference document to the District Credit
Plans. For the purpose, the process has been made more consultative and broad based for
better feedback. Pre -PLP discussions are held with the nodal departments, Govt. officials,
Bankers, Non Governmental Agencies/VAs, development agencies and all concerned. The
policies, priorities and thrust areas declared by the Govt. of India and the State Govt.
are also taken into consideration.
In the Base PLPs detailed potential analysis is done once in every five years
co-terminating with the National Five Year Plans and thereafter refinements are made
every year. Base PLP projections are updated annually under Annual PLPs to bring out
the required revisions /modifications in tune with the changing times and necessities.In the Base PLPs, first of all sector wise Long Term Potential is assessed and then
compared with the existing infrastructure to arrive at the Exploitable Potential in the
next five years. Keeping in view the availability and gaps in infrastructure and support
services, annual phasing of exploitable potential is attempted.
RBI, in its mid-term review of annual policy statement for the year 2004-05, has
dispensed with the restrictive provision of Service Area Approach (SAA) scheme.
However, the positive feature of SAA such as credit planning and monitoring of the
credit purveyance has been retained. accordingly, the allocation of villages among the
rural and semi-urban branches of banks shall not be applicable for lending, exceptunder Government sponsored schemes. The commercial banks and RRBs are free to lend
in any rural and semi-urban area, the borrowers have the choice of approaching any
branch for their credit requirements. The requirement of obtaining 'no due certificate' from
the service branch for lending by non-service area branch has been dispensed with.
Further, the Annual Credit Plan/District Credit Plan will be based on the Potential Linked
Plans (PLPs) prepared by NABARD.
Taking into consideration the revised guidelines issued by RBI, NABARD also changed its
methodology for preparation of PLPs. The NABARD discussed the modalities for preparing
the credit plans with select Commercial Banks to make the planning exercise moreparticipative ensuring active involvement of Branch Managers, Controlling Offices and
Government Departments at the district level. Taking into account the views that emerged
during the consultation, pre-PLP meetings are to be convened by LDMs during
August/September to be attended by the banks, Government agencies etc. to reflect their
views and concerns regarding credit potential (sector/activity-wise) and deliberate on
major financial and socio-economic developments in the district in the last one year and
priorities to be set out for inclusion in the PLP. PLPs, containing block-wise/activity-wise
potential, are be placed before a Special meeting of the District Consultative Committee
(DCC) for detailed discussion prior to finalizing an implementable District Credit Plan. The
Controlling Offices of Commercial Banks and Head Office of RRB and DCCB/LDB have
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been advised to circulate the accepted block-wise/activity-wise potential to all their
branches for preparing their Branch Credit Plans. The branch Credit Plans are required to
be discussed and aggregated to form the Block Credit Plan in the Special Block Level
Bankers Committee (BLBC) meetings. The Block Credit Plans would be further aggregated
by the Lead District Manager to form the District Credit Plan. AAP/DCP is to be launched
by 01 April after final acceptance/approval by DCC.
With the liberalisation and globalisation of Indian Economy in general and agriculture
sector in particular, the agricultural sector needs to be more responsive and competitive to
face the external challenges. This would necessitate huge investments in infrastructure,
technology, post harvest management, research and development, extension services, etc.
Credit planning will therefore continue to play a significant role in ensuring prioritization
and making available adequate credit to various sectors of rural economy. Towards thisend, the present PLP document for the year 2006-07 will prove to be useful to all agencies
and functionaries associated with the rural development especially to the bankers in
preparing District Credit Plans by duly recognising the potentials available in each sector
of the district economy.
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CHAPTER II
SECTORAL REVIEW AND POTENTIALS PROJECTIONS
I. ST Production and Marketing Credit
2.1. CROP LOAN
2.1.1. Introduction
Agriculture is the predominant economic activity of the district and more than 80% of the
population earn livelihood from agriculture. The district is endowed with various natural
resources which are highly suitable for improvement of general agriculture scenario. The major
factor that influence the agriculture situation is availability of water. The district has a network
of rivers most of which are perennial and flow across all the blocks. The soil is also suitable for
most of the crops. The major crops grown are paddy, sugarcane, potato, mustard and pulses and
rice. The climate and soil structure in the district is suitable for growing plantation crops like
Tea, Rubber, Cashew, Coconut, Arecanut etc. And some important horticultural crops such as
Pineapple, Banana, Orange, Papaya, Citrus species Turmeric, Chilies, Ginger etc. are also
suitable for cultivation. Oilseed is also cultivated in a very small scale. Major factor that is
affecting the crop production during Wharf season is recurrence of flood.
The land use pattern (as on 1999-00) of the district is given in the table below:
2,710Pasture land11
8,400Land under misc. Trees, groves etc.10
2,100Cultivable waste land9
9,513Fallow land8
24,487Land put to non-agriculture7
54,504Forest6
14,592Barren & uncultivable land5
33,009Area sown more than once464,594Net sown area3
97,603Gross cropped area2
180,900Geographical area1
Area (ha.)ParticularsSl. No.
2.1.2. Availability and gaps in Infrastructure & Support Services
Irrigation is the critical input for increasing production and productivity of crops.Irrigation potential created through Govt. Scheme as on 31 March 2004 was 2123 hectares.
The total irrigated area under various crops is about 7256 ha. constituting only 7.39 per cent
of total cropped area. Agriculture is by and large rainfed. Farm mechanisation by use of
tractor, power tiller etc. is also very limited. Agro Industries Corporation arranges for
supply of farm machinery including tractors and power tillers. The use of High Yielding
Variety of seeds have shown substantial growth over the years. The total area under HYV
of paddy is about 39515 ha. Assam Seed Corporation is the major agency supplying HYV
seeds to farmers.
District Agriculture Department usually provides the extension services to the farmers in
the district. The department also arranges for demonstration of inter-cropping and
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multiple cropping and distributing improved seeds under programme like NWDPRA and
ARIASP.
The Indian Council of Agricultural Research (ICAR) has recently given approval for settingup seven Krishi Vigyan Kendras in Assam. One KVK has been established in Akborpur.
Quality seeds of specific crop varieties are considered as the most important input, for
agriculture. The major problems that have come to light are :
The potato seeds which have maximum demand are in short supply.
The seeds that are not in demand sometimes arrive in large quantity whereas seeds
with demand may be in short supply or arrive very late.
Such irregularities in the supply of seeds are mainly due to dependence on outside sourcesand transportation problems particularly in rainy seasons when both roads and railway
communications are cut off.
To increase utilisation of HYV seeds of other crops, the capacity of various seed farms in
the district and Barak Valley Zone needs to be increased. Also new flood resistant seed
variety which are found suitable for the region need to be procured and supplied in time.
Despite a good network of fertiliser supply agencies, timely availability of fertiliser
continues to be a weak link in the sector. The Primary Agriculture Cooperative Societies
(GPSS) in the district are in bad shape and as such not purveying to the credit needs of thefarmers. There are 33 GPSS in the district of which two societies are carrying out
agricultural business. There are about 982 FMCs in the district, out of which 321 are active.
In view of the weak cooperative credit structure in the state as a whole, utilisation of FMCs
as a means of channeling agricultural inputs is being explored.
KCC : During the year 2004-05, the target fixed for the issue of KCC was 8500 cards against
which 2443 cards have been issued with financial assistance of Rs. 237.33 Lakh.
2.1.3. Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07Keeping in view the decision of Government of India for doubling of credit flow to
agriculture in next three years (from 2004-05 to 2006-07) and the infrastructure available and
present state of development of the sector, the base PLP projection for the year 2006-07 has
been revised and details are given next page :
(Rs. lakh)
48.3032.202000.16146.9346.933110.151HaSummer rice
141.60230.1013000.177432.17432.1728820.151HaWinter rice
113.4037.802000.18992.0392.035650.163HaAutumn rice
Bank
Loan
Fin.
Outlay
Phy.
UnitsSoF
Bank
Loan
Fin
Outlay
Phy.
UnitsSoFUnit
Updated PLPBase PLP
Activity
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416.00416.002600651.04651.04Total
7.565.00100.5002.072.07110.180HaGinger
12.0012.00500.6062.892.89190.150HaTurmeric
0.361.68140.1200.290.2920.120HaOnion
1.2017.401450.1201.041.0490.120HaChilly
53.6421.90490.44748.7348.731200.407HaPotato25.455.09100.50913.1313.13450.293HaSugarcane
1.441.4460.2401.281.2850.240HaJute
3.8426.882800.0963.863.86400.096HaRape /
Mustard
0.213.85550.0700.200.2030.070HaLinseed
0.006.501000.0650.080.0810.065HaSeasum
4.508.251100.0754.434.43590.075HaOther Pulses
0.902.25300.0750.780.78120.065HaPea
0.300.3050.0600.250.2540.060HaBlack gram
0.000.0000.0600.020.0200.060HaGram
0.300.3660.0600.240.2440.060HaTur1.003.00300.1000.620.6260.100HaMaize
Bank
Loan
Fin.
Outlay
Phy.
UnitsSoF
Bank
Loan
Fin
Outlay
Phy.
UnitsSoFUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projection is given in the Annexure-I.
2.1.4. Review of Ground Level Credit
Despite having been endowed with favourable agro-climatic condition, credit flow for
agriculture has been very low. The ground level credit for last three years is given below
(Rs.lakh)
99.00%333.882004-2005
502.69%168.092003-2004
51.00%27.892002-2003
GrowthAmountYear
From the above trend it can be said that the flow of credit under the sector is slowly picking
up. During the year 2002-2003, the crop loan of Rs.27.89 lakh was disbursed through 3654
KCCs against a target of 21000 KCCs. The target fixed for the issue of KCC for the year
2003-2004 was 8500 cards against which 2240 cards have been issued. During the year2004-05, the target fixed for the issue of KCC was 8500 cards against which 2443 cards have
been issued with financial assistance of Rs. 237.33 Lakh. In view of implementation of Kisan
Credit Card scheme by the Commercial Banks and RRB in the district and relief measures
taken by some of the Commercial Banks it is likely thatthe flow of credit to Agriculture &
allied activities during the coming years will further get a boost.
2.1.5. Suggested Action Points
Department
The cooperative credit structure may be revamped.
Existing lift irrigation points of minor irrigation may be repaired and made
functional.
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Adequate and timely availability of inputs like HYV seeds, fertilizer, pesticides etc.
may be ensured.
Banks
All banks operating in the district to adopt a proactive role to increase the credit
flow under the sector, particularly commercial banks and RRB to take
responsibility as the health of cooperatives is very weak.
Banks may take initiative to implement the On Farm Water Management Scheme, a
subsidy oriented centrally sponsored programme to exploit the ground water
potential and thereby increase the crop production.
Kisan Credit Cards may be issued to all the eligible farmers in order to improve the
credit flow to this sector.
2.1.6. Other Issues
KCC and RKBY :
Given the enormity of the credit requirements on one hand and the vagaries of nature on
the other, financing for agriculture has been a gigantic task for banks in India. Ensuring
timeliness and adequacy of Credit to farmers, the scheme of Kisan Credit Cards has been
introduced. During the year 2004-05, the target fixed for the issue of KCC was 8500 cards
against which 2443 cards have been issued with financial assistance of Rs. 237.33 Lakh. This
card also provides insurance to the holders.
National Agriculture Insurance Scheme implemented by GoI covers all the crops grown in
the district. Accordingly. All farmers who avail crop loans from financial institutions are
compulsorily covered and is optional for non loanee farmers. The scheme provides
comprehensive risk insurance against yield losses due to natural calamities like floods,
droughts, hailstorm, hurricane, etc. The sum insured extends to the value of the threshold
yield of crop, with an option to cover up 150 % of the crop on payment of extra premium.
This scheme is expected to be critical instrument of development in the field of crop
production by providing financial support to the farmers in the event of crop failure and
help maintaining flow of agricultural credit.
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(II) Investment Credit for Agriculture and Allied Sector
(A) Investment Credit for Agriculture
2.2. Minor Irrigation
2.2.1. Introduction
The Karimganj district experiences fairly heavy rainfall i.e. 3910 mm every year. About
95% is recieved between April and October and remaining 5 months are very dry. More
than 50% of rainfall occurs between June and August resulting in large scale flooding of
cropped area. In the chronically flood affected area, the Wharf crop is totally damaged
almost every year. Thus farmers in these areas are compelled to go for alternate crops
during Rabi seasons. Irrigation facilities for cultivation during flood free period attain
paramount importance. Irrigation is also felt necessary during occasional dry spell ofshort duration in kharif season. The main rivers that flow through the district are Barak,
Kushiara, Longai and Singla. Fifteen (15) lift irrigation projects were planned from rivers
Kushiara, Longai and Singla.Of these, six LIS with irrigation potential of 45 ha were
completed up to March 2005. Under ARIASP scheme, 142 STWs were installed by the
department. Under World Bank funded MI project, 243 STWs were installed. The details of
Land use pattern of the district is given under Crop Loan Chapter.
2.2.2. Availability and gaps in Infrastructure & support services
There are three implementing agencies for irrigation projects in the district viz: IrrigationDepartment, which takes up exclusively Government Schemes, Agricultural Engineering
Wing of Agriculture Department that takes up some key projects like STWs, CIP etc., and
ASMIDC which was created for taking up credit linked irrigation projects. However,
ASMIDC became sick and is not taking up any programme. Most of the minor irrigation
projects that are being implemented in the district are funded by World Bank under
ARIASP with 50% subsidy and no bank loan is involved. As a result, credit to the sector is
meagre. The Irrigation Department may be provided with adequate funds to complete the
incomplete/on-going projects. Banks may finance minor irrigation projects under On
Farm Water Management Scheme which is centrally sponsored programme for
increasing crop production in the Eastern India. Under the scheme the beneficiaries are
eligible for 30% subsidy and 50% bank loan and 20% margin has to be brought in by the
beneficiaries. The subsidy is administered by NABARD under the scheme.
2.2.3. Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
As per information furnished by Central Ground Water Board (CGWB), Guwahati, 70 nos.
Of STWs have been installed in the district by Agriculture department. Further Ground
Water data reveals that feasible number of STW in the district is 13722 nos. However,
during the visit to the district and after detailed discussion with the DAO, Agriculture
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Engineering dept. and LDM, it could be gathered that, STWs are not feasible in the district.
DTWs are feasible but the cost involved is so high that neither the farmers opt for it nor are
the bankers willing to provide credit. Keeping in view the national priority and changes
taken place in the infrastructure in the district, the potential projected in the base PLP for
the 2006-07 has been revised. The details of physical and financial outlay is given in the
following table:
(Rs. lakh)
17.0022.6855.65075.24Total
---------d)Pumpset17.0022.681400.16212.15014.641200.122No.c)LLPs
----9.0009.0024.500No.b)DTWs
----34.50051.603000.172No.a)STWs
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the projections is given in Annexure-I.
2.2.4. Review of Ground Level Credit
The data on sectorwise ground level credit flow was not available due to non-stabilisation
of SAMIS in the district. However, it was revealed during the course of discussion with
LDM that there was very little credit flow under the sector during last several years.
2.2.5. Suggested Action Points
Department
To provide infrastructure and extension services relating to effective water
utilisation, conveyance methods and intensive crop cultivation methods.
To provide data on block-wise ground water potential and give recommendations
for cost effective design specification for ground water irrigation structures.
To identify rivers, nullahs and streams for harvesting surface water for irrigation
and formulate schemes to be implemented through bank loan.
Banks
To finance extensively for Minor Irrigation projects under On Farm Water
Management Scheme.
To provide loan facility to farmers for purchase of tractors/power tillers etc.
To issue crop loan to farmers.
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2.3. Land Development
2.3.1. Introduction
The detailed soil and land use survey which provides the background material for analysis of
potential for land development is not available for the district. There are two distinct regions
formed by hillocks in the district. They are (i) Duhalia originating from Mizoram towards
South extended upto Ratabari in South-North direction and (ii) Patharia which lies towards
South-West direction. Most parts of the district have flat valley land or marshy lands.
2.3.2. Availability and gaps in Infrastructure and Support Services
The major implementing agency for land development in the district is the Soil Conservation
Department. The Agriculture Engineering Wing of Agriculture Department mainly executes
drainage and reclamation works. The work related to diversion channel, etc. is attended by
Soil Conservation Department as well as Agriculture Engineering Wing. Therefore, there is
urgent need for institutionalisation of such linkages and promotion of an exclusive agency
for development of the sector. The demand of High Yielding Variety (HYV) of seeds have
shown substantial growth over the years. Total area under HYV of paddy is about 39515 ha.
Assam Seeds Corporation is the major agency supplying HYV seeds to farmers. District
Agriculture Department usually provides the extension services to farmers in the district.
The department also arranges for demonstration of double and multiple cropping and
distribution of improved seeds under programmes like NWDPRA & ARIASP.
The department has created only 5 Farm Ponds of size 20mx20mx3m.
2.3.3. Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-2007
The potential projected in the base PLP for the year 2006-2007 has been revised as there is
no improvement in the infrastructural facilities. The details of updated PLP are given as
follows:
(Rs. lakh)
1.451.93100.1933.815.08400.127UnitFarm Ponds
20mX20mX3m
0.000.00Nil0.342
/2 ha5.857.80600.130ha
OFD with LLP (1-2%
slope) (0.342/2 ha)
0.000.00Nil0.3527.8410.45500.209haBench Terracing (10-20%
slope)
0.000.00Nil0.2856.388.50500.170haBench Terracing (6-10%
slope
0.000.00Nil0.25253.4071.204000.178haLand Dev. for Paddy
Cultivation
Bank
Loan
Fin.
Outla
y
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
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1.451.9310174.47232.631200Total
0.000.00Nil0.28897.20129.606000.216haReclamation of water
logged area
Bank
Loan
Fin.
Outla
y
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projection is given in the Annexure-I.
2.3.4. Review of Ground Level Credit
The credit flow under the sector is not available due to non-stabilisation of SAMIS. However,
it is revealed that credit flow for Land Development was very low during past years.
2.3.5. Suggested Action Points
Department :
Strong extension support should be provided for on site technical inputs by the
Govt.
The Govt. should also reconsider the provision of 100% subsidy for various land
development works and come forward for linkage of subsidy with institutional
credit keeping the total volume of subsidy same so as to increase the coverage of
area under land treatment.
The soil conservation dept. may help bankers in financing agriculture and allied
activities in the watershed development project through village watershed
committee.
Banks :
To overcome the credit gap, awareness of the programme may be created among the
farmers
2.3.6. Other Issues
i. National Watershed Development Project for Rainfed Areas (NWDPRA)
Watershed approach offers the solution for the development of rainfed agriculture as it
includes the development of all areas such as agriculture, livestock, pasture development
etc. on watershed basis. Realising the importance of watershed, the Centrally sponsored
National Watershed Development Project for Rainfed Areas (NWDPRA) has been
implemented in the State. The salient feature of NWDPRA is given below:
Department of Agriculture is the nodal agency both at the district and State level.
Project Implementing Agency is line department of the state government
(agriculture, soil and water conservation, forest, watershed development),
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Non-government organisation, Panchayat Raj Institution, research and training
institution etc., are the facilitator in implementation of the project.
Watershed Committees at the village level is responsible for planning,implementation and monitoring of watershed activities.
Area of each watershed is 500 ha.
Each watershed having areas up to 8% land slope is given an amount of Rs. 22.50
lakh @ Rs 4500/- per ha and for those having more than 8% land slope will be given
Rs 30.00 lakh @ of Rs 6000/- per ha .
Period of implementation is 5 years.
203 watersheds were identified in the state for the development during Xth plan period and
as such are being under implementation since April, 2002. Under National Watershed
Development Programme for Rainfed Areas (NWDPRA), 8 watershed development projectshave been taken up in the district covering 500 ha each with 100% subsidy. The cost of the
projects will be Rs.22.5 lakh each. The projects are to be completed during the 10th five year
plan period through NGOs. However, the district Agriculture Office will be the principal
implementing agency. 8 NGOs have already been selected and provided training for two
days for proper implementation of the projects. Moreover, Deptt. of Soil Conservation and
District Agriculture Office, being Principal Implementing Agencies, have been
implementing one project each under Integrated Wasteland Development Project for
development of 8000 ha. of wasteland/degraded land in the district. The details of these
watersheds are given below
VISIO NGOPatarkandiAndheribil8
Navajyoti ClubR.K.NagarDalugang Balicherra7
United MP Soc.PatarkandiDohalia-Borcherra6
ROWANDunavcherraKamunaicherra5
Karimganj GreenLowaipoaMakunda4
SworvayatBadarpurBoruncherra3
RGOIS.KarimganjAnduachera2
Nabarun SanhaN.KarimganjBaghacherra1
Project Implementing
Agency
Name of the BlockName of the watershedSr.No
As both land based (gully control measure, bunding etc.,) and non-based activities (
Duckery, Poultry etc.) are being taken up in a phased manner over the project
implementation with peoples participation, the demand for agricultural credit increases in
the watershed areas. The eight watershed projects taken up under National Watershed
Development Programme for Rainfed Areas (NWDPRA) for implementation in the district
during the Xth plan period, on completion would PROVIDE 4000 ha of barren and
uncultivable land that would be suitable for cultivation which may help to increase
demand for OFD works and crop loans. Further, if the Integrated Wasteland Development
Projects are successfully implemented, 8000 ha. of waste and degraded land shall also be
available for cultivation of crops and plantation/ horticulture activities.
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ii. Organic Manure and Bio-degradable organic wastes
Indiscriminate and unscientific pattern of use of chemical fertilizers had resulted in fast
depletion of soil fertility thereby making them unfit for cultivation in the long run and fallin productivity of soils. In order to attain sustainability in production, there is a need to
increase the usage of organic manure, FYM etc., to rejuvenate the soils and bring them
back to their natural health. In view of this there is an urgent need to enhance the
production and supply of organic manures and compost through NADEP method of
composting and vermiculture etc. The Bio- degradable waste from agriculture sector and
Municipalities can be used for producing manure. The Agro and Municipal waste from
vegetable and fruit markets will be available for converting the same into organic manure.
A people-driven programme aiming at encouraging segregation of organic and inorganic
garbage at source level itself is to be launched in the district. The segregated garbage is to
be brought to NADEP and vermi compost units where organic garbage would be recycledand manure obtained thereof could be sold.
iii. Vermi Culture
Production of vermi casting through scientific rearing of earth worm is to be encouraged. The
vermi casting is found to be a good source for sustainable agriculture. Due to its unique
characteristics of supplementing humus, plant nutrients, vitamins, enzymes, antibiotic and
plant growth hormones, vermi castings have the potential of becoming an effective and
commercial bio-fertilizer. The important benefits of using vermi castings in the field is for
better crop yield, effective environment protection, optimum use of bio-degradable wastes,
reduction in the cost of farm inputs such as water, fertilizers, pesticides etc.
iv. Compost making
The compost making units under NADEP system, which is cost effective, employment
generating, pollution free and involving very simple technology, may also be encouraged in
the district. It works on aerobic bio-degradation process which requires 100 to 120 days for
compost making. The efficient use of dung and agro-wastes in this process makes it possible
to produce 20 kgs of enriched compost from one kg of dung. The department has established
5 nos. Of Vermi Compost units in the district.
v. Capital investment subsidy scheme for commercial production units of organic
inputs under National Project on Organic Farming
The scheme objective is to promote organic farming by making available organic inputs
such as biofertilisers, vermicompost and fruit and vegetable waste compost. Assistance is
provided to the units in the form of credit linked and back ended capital investment
subsidy. The subsidy for biofertilisers unit is 25% of total project cost or Rs. 20 lakh per
unit whichever is less. For Vermiculture Hatcheries it is 25% of total project cost or Rs. 1.50
lakh per unit whichever is less. For Fruit and Vegetable Waste Compost unit subsidy per
unit is 25% of total project cost or Rs. 40 lakh whichever is less.
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2.4. Farm Mechanisation
2.4.1. Introduction
Farm mechanization is an important activity as it leads to increase in production and
productivity, better utilisation of irrigation potential, adoption of new cropping pattern
etc. Farm mechanization helps in minimising the cost of cultivation, increasing income,
reducing drudgery in operations and increasing cropping intensity. Post harvest
machinery helps in value addition and is a source of employment. Farm mechanization
has not made much progress in the district due to fragmentation of land holdings in a
large scale.
The agricultural practices in the district are predominantly traditional and mechanisation
has not yet developed. The main reasons for the poor development is the lack of irrigation
facilities and small land holding pattern. However, farm mechanisation has its importance
in reduction of operational costs of cultivation and increasing efficiency and effectiveness
of farm operations. This fact is slowly being realised by the farmers.
2.4.2 Availability and gaps in Infrastructure and Support Services
The Engineering Wing of District Agriculture Department is the nodal agency for
implementation of Farm Mechanisation programme in the district. Agro-Industries
Corporation supplies implements and after sale services to the farmers. Tractors and
power tillers are also available in Silchar as well as in Karimganj. Hence constraints in
supply of machinery as such is not visualized. A number of servicing centres are available
in the district and spare parts are available in Karimganj and Silchar. Diesel availability is
not posing any problem in the district so far. However, to support the projection more
number of diesel outlets / servicing units are required to be set up.
2.4.3 Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year2006-07
Keeping the infrastructure available in mind, the potential projected in the base PLP for
the year 2006-07 has been revised as shown below :
(Rs. lakh)
19.7026.2521401.68535.58322Total
19.7026.25211.25302.32403.102901.39No.Power
Tiller
----99.36132.48324.14No.Tractor
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projection is given in Annexure-I.
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2.4.4 Review of Ground Level Credit
As sectorwise ground level credit flow data for the district is not available due to
non-stabilisation of SAMIS, analysis of trend in credit flow under the sector could not bedone.
2.4.5. Suggested Action Points
Department
Steps may be initiated for community farming through SHGs with the help of the
NGOs for introducing the mechanization. Similarly, FMCs can be actively
encouraged to adopt farm mechanization.
Banks
Credit facilities may be extended for purchase of tractors under group loan scheme .
Individuals preferably unemployed educated youth may be financed to set up
service units .
Steps may be taken to popularise the subsidy linked On Farm Water Management
programme to bring more areas under assured irrigation to popularise mechanised
farming practice in the district.
2.4.6. Other Issues
Agriculture Department, Govt. of Assam is providing tractors and power tillers to thefarmers under ARIASP with a subsidy of 50% of the project cost. State Govt. is providing
subsidy of Rs. 30000/- and Rs. 48000/- for power tiller under Macro Management, and
Technology Mission, respectively. DRDA is also providing power tillers and tractors to
the farmers under SGSY groups.
The Department has already distributed 15 Tractors and 43 Power Tiller with subsidy
under ARIASP. The Department has also distributed 16 Power Tiller under Macro
Management and 7 Power Tillers under Self Employment scheme. Department is likely to
distribute 10 Tractors with 50 % subsidy under State Priority Scheme.
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2.5. Plantation and Horticulture
2.5.1. Introduction
Horticulture sector not only helps in creating additional job opportunity for the
educated unemployed youth but also useful from the point of view of value addition to
the food and fruit processing units. To increase and stabilize the agricultural income, it
becomes essential to switch over to cultivation of perennial fruit crops. Considering
physical features and agro-climatic conditions there is wide scope for development of
horticultural crops like Banana and Citrus and Arecanut, Coconut, Rubber and Tea in
plantation sector in the district utilising uplands, small hillock and wasteland. The
present area under horticulture crops is about 8938 ha. out of which Arecanut, Potato
and Banana accounts for 2345 ha., 1658 ha. and 1325 ha. respectively. In terms of area
coverage, Potato and Banana rank 2nd and 3rd among horticulture crops. Apart from
these the district has 27 Tea gardens covering an area of about 800 ha.
2.5.2 Availability and gapin Infrastructure and Support Services
The development of Plantation and Horticulture is at present being looked after by District
Agriculture Office. There is no separate Directorate of Horticulture. Supply of planting
materials is mainly done by the department. During 2005-06, Department supplied planting
materials of Black pepper, Lemon and Banana to the tune of 40725, 28125 and 3000 nos.
Respectively and 13000 Banana saplings were supplied by the Private nurseries. More
private nurseries may be encouraged. Field level training has been conducted by the
department. Department proposes to provide Institutional training shortly. There are only
two fruit processing units at Ramkrishna Nagar and Karimganj and as such post harvest
loss is high. One cold storage unit with 6200 MT capacity has been set up in the district. At
least one more cold storage may be set up with 5000 MT capacity in the district for storage
of potatoes and other horticultural crops. There is no soil testing laboratory in the district.
Fertiliser/pesticides etc. are available in the district.
2.5.3. Medicinal & Aromatic Crops (MACs) :
There is not much scope for cultivation of MACs in the district. During the discussion with
DAO and LDM, it could be learnt that till date no farmers have approached for credit. DAO
opined that Citronella can be grown if farmers come forward. To make a beginning in the
district, a small projection has been in the updated PLP.
2.5.4 Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
As there is hardly any development in the infrastructure since the base PLP is
prepared, the projection made in the base PLP for the year 2006-07 has been revised as
shown in the next page
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(Rs. lakh)
45.9561.3011075.85101.13152Total
10.1013.4552.6910.0913.4552.69haSericulture
Muga
0.000.00-0.170.640.8550.17haMushroom0.000.00-0.411.542.0550.41haTube Rose
1.582.1070.301.351.8060.30haAromatic
Plant
0.000.00-0.406.008.00200.40haGuava
9.0012.00400.302.253.00100.30haCitrus
19.3525.80430.602.253.0050.60haPineapple
0.000.00-0.477.059.40200.47haRubber
0.000.00-0.534.055.40100.54haCoconut
6.007.95150.530.400.5310.53haBetelvine
0.000.00-0.6524.3832.50500.65haArecanut
0.000.00-1.4115.8621.15151.41haTea
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Updated PLPBase PLPActivity
Block-wise allocation of the above projections is given in Annexure-I.
2.5.5 Review of Ground Level Credit
Due to non-stabilisation of SAMIS, sub-sector wise disbursement data is not available in
the district and as such ground level credit flow for the sector is not available.
2.5.6 Suggested Action Points
Department
Motivating the small farmers who are engaged in producing the field crops to go in
for the horticulture crops.
Ensuring the supply of quality seedlings /saplings from government farms / private
sources.
Strengthening extension machinery to provide adequate guidance and technical
inputs to the farmers.
Exploring the possibility of location specific projects and forward to banks for
extending credit facilities for development.
Banks
Banks to take proactive role to finance horticulture projects.
Banks may in consultation with Horticulture Department, at present with DAO,
prepare area based schemes and implement them taking advantage of Refinance
assistance from NABARD.
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2.6. Forestry and Waste Land Development
2.6.1. Introduction
The cultivable waste and other fallow lands which are not suitable for arable farming could
be developed for cultivation of tree crops through package of treatment which includes soil
erosion control measures, improvement in water availability and best suitable cropping
systems. There is good scope for reclamation of these lands with institutional finance if the
State Government identifies the specific areas and prepares schemes in association with
financial institutions. Government of India had recommended adoption of watershed
approach for wasteland development. Watershed approach emphasizes development of
land on the basis of its capability. The district is vulnerable to floods leading to soil erosion
and other damages. Aforestation in the district would lead to converting fallow lands to
produce valuable timber and fuel wood. The climate of the district is suitable for a variety
of forest species of commercial importance including timber, bamboo, Jatropha etc..
The forestry sector holds enormous potential for development in the district due to
presence of (i) Cachar Paper Mill located in adjacent Hailakandi district uses Bamboo as
major raw material. (ii) 120 nos. of registered forest based units in Karimganj, (iii) Large
demand of wood for Tea industry for tea chest making. Apart from above a large number of
cane and bamboo artisans located in the district depend for supply of raw material solely
on existing forest.
Cane and Bamboo Technology Centre (CBTC) has sent varieties of bamboo species
available in India to Chinese Institutes for test. Preliminary test conducted by the two
Chinese institutes have found that Indian bamboo is considerably superior and has
necessary attributes for industrial application. National Mission on Bamboo Technology
and Trade has earmarked 2 Million hectares of Bamboo plantation in Forest and non-forest
land during the X Plan Period. This is also one of the thrust areas of the United Nations
Industrial Development Organisation (UNIDO) project. The CBTC has been given overall
responsibility for implementing a $1.4 million scheme for upgradation of cane and bamboo
in Northeast.
2.6.2. Availability and gap in Infrastructure and support Services
The development of forestry is being looked after by Department of Forest and Social
Forestry Division. Recently, NAEB, Ministry of Forests & Environment, GoI has
sanctioned a project namely National Afforestation Programme in Karimganj district.
The department has already raised 1000 ha. of plantation and 2143 km of village road under
this scheme on its second year i.e. 2004-05 covering 12 JFMCs. Another 6 JFMCs are to be
covered during 2005-06. The Division proposes to raise 1500 ha. of Jatropha plantation
during 2006-07. Social Forestry Division supplies saplings to the farmers at subsidised rate
for social forestry. During 2004-05 they have supplied 145475 seedlings and propose to
distribute 159800 free of cost during 2006-07. Besides, seedlings are also sold to the public as
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per Govt. Policy of Rs. 2 per seedlings. They also have their own nurseries over an area of
3.5 ha. and intend to have nursery over 4 ha. Of land during 2006-07 . The
commercialisation of forestry is yet to pick up in the district. Awareness about bankable
scheme under Forestry is lacking. Bankers may formulate bankable schemes in
consultation with the Forest Department and create awareness about the scheme amongst
farmers. The Department of Forest may arrange to supply supplings to farmers at a
nominal rate to take up commercial production of wood / timber / bamboos/Jatropha.
Private nurseries may be encouraged under forestry.
2.6.3. Bamboo Plantation & Development
Bamboos being the versatile perennial grass species are distributed in a wide range of
agro-climatic and soil conditions. Bamboos, due to their faster growth and horizontal root
and rhizome network conserve the top soil and moisture and considered as the efficient soil
binder. With increasing wastelands in forests and non forest areas, bamboos have been
considered as the effective tool to cover the wastelands under vegetation cover. There are
more than 1500 recorded uses of bamboos and it support the rural and urban economy and
ecology to a great extent. Apart from these industrial and utilitarian values, they support
the agriculture, fisheries, sericulture, animal husbandry and other allied sectors.
Meanwhile they are well acceptable by the society because of their multifarious uses and
knowledge of the their propagation and regeneration. The Bamboos therefore considered
by GOI as a developmental tool and a National Mission on Bamboo Technology and
Trade has been launched with the aim to generate employment and income opportunities
and to ensure ecological security. GOI has envisaged to cover 2 million hectares of Bamboo
plantation in forest and non-forest areas in X five year plan and to expand it in future also.
To augment the financial resource for such a programme, it is therefore necessary to
develop a Public Private Partnership (PPP) and provide the credit support for Bamboo
plantations. The plantation models may be developed as farm forestry, agro-forestry,
boundary plantation and strip plantation. As the Bamboo nurseries will be necessary to
feed the plantations they may also be supported through credit support individually and as
group activities as well.
Cachar Paper Mill, Panchgram has of late started promoting farm forestry in the private
land in Barak Valley Region by distributing bamboo seedlings from its own nursery as also
through NGOs at subsidised rate of Rupee one per seedlings. NABARD has formulated
banking plan after discussions with the officials of Cachar Paper Mill, bankers, NGOs and
prospective farmers of Barak Valley over an area of 2500 acre phased in three years starting
from 2005-06. There is a tie-up arrangement with Cachar Paper Mill for purchase of the
bamboo from the farmers for their consumption. The scheme did not perform well as
mortality rate of the bamboo seedlings were as high as 80 %. The Cachar Paper Mill
proposes to encourage the farmers to undertake plantation with rhizomes in 2005-06.
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2.6.4. Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
Keeping in view, the banking plan of Bamboo, the projection made in the base PLP for the
year 2006-07 has been revised as under :
(Rs. lakh)
37.3049.6414413.4617.95Total
0.480.6440.1604.465.95350.17haNurseries
18.4124.50700.350----haJatropha
18.4124.50700.3509.0012.00600.20haBamboo
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projection is given in Annexure-I.
2.6.5. Review of Ground Level Credit
No trend analysis of credit flow under the sector could be established due to
non-availability of ground level data. However, it is understood that no credit flow has
taken place under the sector for last few years. However, in view of priority given to
Bamboo & Jatropha by GoI, the credit flow under this sector is likely to increase.
2.6.6. Suggested Action Points
Departments
The Agriculture Department, in co-ordination with Agricultural Engineering
Department and other line departments, may identify compact areas and prepare
location specific schemes with suitable tree species. While intensifying the
extension activities to educate and motivate the farmers to undertake forestry
programmes, they may also formulate model schemes for development with bank
credit.
Community participation and Involvement of good SHGs in promoting farm
forestry will pay good dividends.
Banks
The banks have to come forward to encourage the farmers through timely credit for
undertaking wasteland development programmes. They may also formulate model
schemes in consultation with NABARD. Bankers may work in close coordination
with forest department and get bankable scheme formulated under farm forestry.
NGOs / VAs may also be involved in the process to augment the credit flow under
the sector.
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2.6.7. Other Issues
2.6.7.1. Jatropha ( Family : Euphorbiaceae) :
Jatropha curcas is a wild growing hardy plant well suited for cultivation in harsh climate
including wasteland. It can be easily propagated from seeds as well as through vegetative
propagation. Jatropha can also be profitably grown as a perennial non-edible oil crop on
irrigated and partially irrigated lands. The rate of success of plantation is much better with
polypot seedlings than direct sowing or cuttings. For procuring polypot seedlings either a
nursery may be established or seedlings may be obtained from nursery raised by Forest
Department/Forest Development Corporation or kissan nurseries. It is desirable to obtain
clonally propagated planting stocks, if available. A spacing of 2mx2m will enable better
growth of the canopy to produce more seeds. Application of FYM & some doses of fertiliser
will boost the growth of the plants particularly in wastelands where soil nutrients are
almost in depleting state. The main objective of Jatropha plantation is to produce seeds,
and therefore, artificial irrigation during dry period as well as flowering and fruiting time,
upto 6th year will undoubtedly boost the growth of the plants and seed production as well.
Around 200 liters of bio-diesel can be procured from 10 quintal of Jatropha seeds.
Cost of cultivation upto 6th year is around Rs.39,000/- based on a labour rate of Rs.56/- per
manday. The returns are expected to start from 2nd year onwards stabilising by 7th year at
Rs.24,000/- per hectare. A flexible repayment schedule shows that by 11th year entire bank
loan with interest can be repaid with half of income generated, although the plantation will
generate sufficient income till 30 years. IRR of such partially irrigated Jatropha plantations
is 30.39%. These parameters have indicated beyond doubt that, the Jatropha plantations
are both technically feasible and financially viable and bankable too.
A few companies viz. Godrej and Hindusthan Levers have shown interest to purchase the
seeds. Besides, the Indian Railway has guaranteed to procure any quantum of Jatropha oil
for their own use. GoI is giving due importance to Jatropha cultivation in a big way
especially to counter the steep hike in petrol and diesel prices. The non-edible oil is in fact a
substitute to diesel and a few companies have initiated trial plantations including setting
up of extraction and emulsification of Jatropha oil for bio-diesel production.
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(B) Investment Credit for Allied Activities
Animal Husbandry
2.7. Dairy Development
2.7.1. Introduction
A large part of our wastelands are unfit for crop production and can be best utilised for
rearing animals. They convert crop residues into precious food for human being. The
bovines produce enormous quantities of organic manure vital for soil health and its
productivity. Dairy farming is being practiced by most of the small and marginal farmers
and landless labourers and to them this activity provides economic security by serving as a
hedge against crop failure. The economy of the Karimganj district is basically agrarian and
as such the economic development of the district is highly dependable on agriculture and
allied activities. Dairy farming is an important subsidiary occupation in the district next
to agriculture. But the commercialisation of the activity has not yet taken place. From the
analysis of demand and supply of milk in the district vis-a-vis total population, it is
observed that there is a vast scope for financing of crossbred cows in the district.
2.7.2. Availability and gap in Infrastructure and support
The total number of cross bred cows, Indigenous Cow and buffaloes are 13285, 315986 and
60321 respectively as per 17th livestock census 2003. Health care of the cattle is being looked
after by one Veterinary Hospital, 12 dispensaries and 15 Sub-Centres. However, at least 80
veterinary institutions are required as per Govt. of India norms. The concentrated feed is
available in the market. However, no feed plant is available. Green and dry fodder is
available in the tea gardens and forest area but no commercial production of green fodder
is attempted. Breeding facilities available in the district are 11 AI centres with frozen
semen as against the requirement of 44 AI units. The frozen semen and liquid nitrogen is
being supplied to these AI Centres from ICDP, Ghungoor, Silchar. During the last three
years, artificial insemination was done in 6890 animals. Although there are 8 milk
cooperative societies but most of them are defunct. No milk route has been identified so far
and no chilling plant has been set up in the district. To encourage the milk production,
existing milk cooperative societies are to be revitalised, more societies are to be formed and
milk route to be identified.
Out of 4 EOs (Veterinary); 11 Veterinary Asst. Surgeons and 64 Veterinary Field Assistants;
4 EOs, 8 VAS and 58 Field Asst. are engaged in rural areas. Though all the blocks have VAS
and Field Assistants, there is no VAS in Lowairpoa Block.
Two training programmes were conducted involving 32 beneficiary during 2003-04 and
thereafter no training programme was held.
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2.7.3. Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
There is no demand for indigenous cow in the district due to low milk yield. Though thereis good demand for buffaloes but due to non availability of quality animals in the district,
farmers are not keen to buy buffaloes at very high price from other districts. Keeping in
view the decision of doubling the credit flow in three years and the infrastructure available
and gap as discussed above, the potential could be exploited during 2006-07 is given below :
(Rs. lakh)
32.5543.40156.04208.05Total
---(1+1)67.0389.383250.275(1+1)Baffaloes
---(1+1)40.8454.454500.121(1+1)Ind. Cow
32.5543.401400.310(1+1)48.1764.221750.367(1+1)CB Cow
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
CostUnit
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
CostUnit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projection is given in Annexure-I.
2.7.4. Review of Ground Level Credit
Purpose-wise credit flow in the district is not available due to non-stabilisation of SAMIS.
Hence no trend analysis could be established.
2.7.5. Suggested Action Points
Department
District Animal HusbandryDepartment may be further strengthened.
More veterinary centres / AI centres may be established for effective
management of cattle health and breeding.
Govt. May ensure the supply of quality frozen semen and liquid nitrogen in
the district.
More milk cooperative societies may be formed to tap the potential.
Milk routes may be identified to cover all the blocks of the district.
Banks
Bankers may encourage commercial Dairy unit besides Govt. Sponsored
Dairy scheme.
2.7.6. Venture Capital Fund :
With a view to provide interest free loan / interest subsidy on bank loan to small Milk
Producer / entrepreneur & Poultry grower / entrepreneurs, Govt. of India has announced
the scheme for creation of a fund for "Venture Capital for Dairy and Poultry Sector". The
scheme was introduced in the DCC meeting held on 21 June 2005. The District Vety. Officer
has been advised by the Deputy Commissioner to initiate necessary field survey so that the
scheme can be implemented in the district at the earliest.
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2.8. Poultry and Duckery
2.8.1 Introduction
Poultry eggs and meat are the important sources of high quality proteins to balance the diet
of common people. Poultry farming, especially Broiler farming, can provide gainful
employment if done on a commercial scale, to harness the tremendous market potential in
the district. The district has a conducive climate for commercial broilers, and the activity
has made fairly good progress, despite the lack of assured marketing supply. The district
has vast potential for poultry and duckery as almost 90 % population is non vegetarian.
Though there is good demand for eggs in the district, layer units set up by the farmers have
not been successful at all. During the course of discussion with District Veterinary Officer,
LDM and farmers, it could be learnt that, the eggs which comes from Andhra Pradesh are
cheaper than the eggs produced locally.
2.8.2 Availability and gap in Infrastructure and supportServices
The detailed infrastructural linkages pertaining to veterinary facilities have been
discussed in the Dairy Development Chapter. It can been seen that there is a need for
strengthening of the existing facilities as well as establishment of new facilities like
hatchery unit for supply of DOCs, feed mixing plants for feeds. etc.
2.8.3 Assessment and Phasing of the potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
Keeping in view the infrastructure available and present state of development, the
potential projected in the base PLP has been revised for the year 2006-07 as under:
(Rs. lakh)
56.6075.45176.0058.8478.45407Total
53.5571.401050.68
030.3840.50450.900500 Birds
Broiler
Poultry
3.054.05710.05
714.9619.953500.05728+4 BirdsLayer
Duckery
----13.5018.00121.500500 BirdsLayer
Poultry
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Updated PLPBase PLP
Activity
Block-wise allocation of the above projections is given in Annexure-I.
2.8.4 Review of Ground Level Credit
No credit flow data under the sector for the district is available due to non-stabilisation of
SAMIS. However, it is observed from the discussion with LDM and bankers that very little
bank credit was given to the sector in the last few years.
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2.8.5. Suggested Action Points
Department
District Animal Husbandry Department may be further strengthened. A nodal
officer may be appointed exclusively for development of poultry farming.
Private enterprises in the fields of hatchery and feed milling need to be encouraged.
Banks
Bankers may work in close association with the veterinary department in
identifying the prospective farmers and preparation of bankable scheme.
Banks may conduct workshop inviting officials from line department, NGO, farmers
to make the farmers aware of the latest schemes, to educate and motivate the
farmers to take up the activity under this sector.
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2.9. Sheep / Goat / Piggery
2.9.1 Introduction
Abundance of pasture & grazing land provide ample scope for development of goatery in
the district. The hilly