MR Sharma by pengxuebo


									Extension and Credit in

     Prof. M.R. Sharma
       Krishi Bhawan
         New Delhi
       Extension and Credit in
     Extension and credit are too main
components which can play very important role in
the developmental activities of horticulture sector.
Credit is available with banks. NABARD, bank an
apex bank in the country to provides credit in the
field of agriculture and rural based cottage
industry. In the field of horticulture NABARD,
has disbursed a cumulative amount of 3,303.21
crore of refinance since its inception up to 31st
March 2005. The projection a for refinance under
horticulture for 2005-2006 is Rs. 354.28 crores.

National Bank has estimated the potential for 2006-
2007 Rs. 4494.44 crores in the basis of potential
linked plans proposed for all the state. Under NHM
activities the major emphasis has been given for
plantation infrastructure and development which
includes production of establishing the model
nurseries, rehabilitation of Tissue Culture Labs,
establishment of new gardens
   Creation of Water storage structure,
protective cultivation, promotion of INM/IPM
and Post Harvest management, processing and
value addition with special reference to Pack
houses,     Market      intelligence,  Mobile
processing units etc. Most of these activities
are project based. The private entrepreneur
should provide the bankable projects with back
ended subsidy provision.
The credit requirement under this
sector during the X Plan period has
been assessed as Rs. 18,420 crores.
The credit requirements for 2006-07
has been estimated Rs.4494.44
     Retrospect and Prospects of
         Horticulture Sector
Institutional finance has a prominent role to play
to meet the fund requirement for strengthening
the supply base of horticulture and plantation
sector. The task Force on Agriculture Credit had
estimated that during the X Plan period, a
physical programme of 13.16 lakh hectares would
be covered under plantation and horticulture (6.64
lakh ha under fruit and vegetables, 6.08 lakh ha
under plantation crops and 0.44 lakh ha under
crops) through credit support.
The business operations in horticulture sector
 are discussed in the following sections with
                  respect to
   Ground level Credit (GLC)
   Refinance support
   Co financing
   RIDF projects
   Capital investment subsidy schemes of Gol
   Centrally sponsored schemes and
   Externally aided project
       Ground level credit flow
Year                          GLC (Rs in crore)

2001-01                        755
2001-02                        765
2002-03                       1195
2003-04                       1436
Annual Compound Growth         18.4 %
Rate (1999-2000 to 2003-04)
         Policy Initiatives
In order to augment the reach of bank
credit and increase the production of
commercial crops as also for creation of
marketing avenues for the farmers, all
contract farming arrangements (within and
out side AEZs) are made eligible for
availing special refinance package from
NABARD.       The     various   initiatives
undertaken by NABARD in this direction
are :
        Financial Interventions
(i) Special Refinance package for financing
   farmers for contract farming in AEZS
 100% refinance to disbursements made by
   CBs, SCBs, RRBs and select SCARDBSs
   (having net NPA less then 5%) and softer
   interest rates on refinance.
 For NE states, ROI is 5.50% irrespective of
   the loan quantum
 Term facility for repayments (3 years)
(ii) Fixation of higher scale of finance for
crops     under       contract     farming.

(iii) Extension of refinance scheme for
financing farmers for contract farming in
AEZs to contract farming outside AEZs and
includes medicinal and aromatic plants.

(iv) Extension of refinance scheme for
contract farming under Automatic Refinance
(v). For loan to finance processing industries
under investment credit, refinance is now
available for term loan up to Rs. 50 crore and
on case by case for amount more than Rs.50
Crore . ROI for refinance is 7%.

(vi) Financing State Govt. Infrastructure
Development under RIDF.
vii Preparation of banking plan for financing
DG sets to Gherkin farmers in Karnataka with
TFO – 1.71crore

viii Area Development project for grapes in
Maharashtra with TFO- 402crore.

ix   Risk sharing with banks – Co- financing
      Developmental Interventions
   Conducting workshop and exposure visits
    for better interface among farmers and
    entrepreneurs and popularization of
    contract farming concept.
   Conducting crop specific studies in
    Gherkins, Grapes and Mango understand
    the gamut of contractual arrangements.
   Sensitization of stake holders through State
    and Dist. Level meet and consultations.
   Sensitisation of Bankers through tailor-
    made training programme at Bankers
    Institute for Rural Development (BIRD)
   Follow-up with National Agriculture
    Insurance Corporation for insurance of
    crop grown under contractual
    arrangements in AEZs.
   Initiatives for expansion of scope of contract
    farming for medicinal plants through
    corporate initiatives- Reliance life line.
Key Potential Areas to increase the
production and productivity of
Horticulture crops
 Higher returns per unit area through production
 scheduling, proper post harvest management,
 strategic marketing, processing and export are the
 major thrust areas in horticulture sector. The
 emerging opportunities for this sector in global
 trade is placed at higher peaks. Market oriented
 production systems, value addition and bulk
 reduction are the key issues to be addressed for
 the commercialization of India horticulture sector.
 In this respect, focused interventions are as under.
   Production of genuine quality planting
   Area specific package of practices for
    optimization of productivity.
   Promoting dry land and wasteland
    development through horticulture.
   Stress on water management of horticultural
    crops with micro irrigation technologies like
    drip and sprinkler systems.

   Developing captive farms to the advantage of
    producers, processors and exporters.
   Contract farming as a tool for
    commercialization of horticulture sector.
   Promoting organic production systems with
    focus on export.

   Market oriented/ demand driven/ export
    oriented production systems.
   Integrated value chain
   Supply chain management
   Orienting the production and post harvest
    handling towards future market.
   Integrated development of horticulture
    including storage and on farm preservation
    facilities, processing, marketing and export.
   Modernisation of processing machineries for
    better quality, saving in processing cost and
    more efficient production.
   Developing horti business opportunities
    through linkage models for integrating Indian
    farm gates with international food plates.

   Strengthening the back ward and
    forward linkages.
   Private participation in infrastructure
    development, productions and agro
    processing sectors.
   Involvement of NGOs, SHGs and
    Krishi Vigyan Kendra (KVK) in the
    development of Horticulture in the

   Creations of the funds i.e. Market
    Development Fund (MDF) and Agro
    Processing Infrastructure Development
    Fund (AIDF) to promote the agro-
    processing in a big way.

   National Commitment.

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