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  • pg 1
									                                                                       PLP 2006-07 - Nagaon, Assam

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 this
end, 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.

                                           [ 17 ]
                                                                             PLP 2006-07 - Nagaon, Assam

                                                CHAPTER- II

2.1      Crop Loan
2.1.1 Introduction
Agriculture is the backbone of the district’s economy and is the main occupation providing
livelihood to about 78% of the total population. Rice is the staple food of the inhabitants and
paddy is the principal crop grown in the district. Other crops grown on commercial scale
are potato, sugarcane, wheat, mustard, jute, vegetables etc.

Out of total geographical area of 383100 ha, the gross cropped area, net cropped area and the
cropping intensity in the district was 417218 ha, 217805 ha and 192% respectively (as per
2003-04). In 2004-05, the district of Nagaon witnessed unprecedented floods in two occasions
in July and October 2004 resulting reduction in crop areas of sali paddy. The loss of crop
areas was compensated by bringing additional areas under summer paddy. Thus, in
2004-05, the gross cropped areas, net cropped areas and the cropping intensity have been
worked       out        at   405908 ha., 217298 ha. and 187%   respectively. The average fertilizer
consumption is at 57.2 kg per ha. 90% land holdings are small and marginal farmers.

Average production of major crops for the last three years 2001-2002, 2002-2003 and
2003-2004 is given below :
                                                                               (Production kg/ha)
      Crop                           2001-2002              2002-2003            2003-2004
 1. Paddy                                1594                   1721                  1773
 2. Sugarcane                           36622                  35445                 35626
 3. Wheat                                 961                    896                   942
 4. Mustard                               615                    658                   490
 5. Pulses                                585                    615                   473
 6. Vegetables                          14740                  11870                 10752
 7. Potato                              10065                  11248                 10461
2.1.2    Availability and gaps in Infrastructure & Support Services:

The cultivators in the district are enterprising and raising commercial crops. To increase
the rice production, cultivators in a big way have started cultivation of boro/summer
paddy as the irrigation facility is now available to their fields through installation of
Shallow Tube-Wells provided by the Agrl. Dept. under ARIASP and                   NABARD         RIDF
Scheme. Cultivators are aware of the prevailing cropping pattern in the district.

The following special production programmes are in operation in the district to increase
production and productivity of agricultural crops.

(i) Special Food grains Production Programme (SFPP) (ii) National Oilseeds Development
Programme (NODP) (iii) Oilseeds Production Programme (OPP) and (iv) Integrated Cereals
Development Programme (ICDP).

                                                   [ 18 ]
                                                                       PLP 2006-07 - Nagaon, Assam

It is, however, felt that in order to get the remunerative prices of the products by the
farmers, diversifying of agricultural products is necessary. In this context, attention
has to be paid for raising of commercial crops like pulses, oilseeds.

The Department of Agriculture provides extension services to the farmers through 32 AEO
Circles with 219 VLEW elakas in all the 18 Block         Agriculture Offices. The following
infrastructure/ non-credit inputs are available in the district.

(i) GPSS - 61 (ii) Agricultural Growth Centre -2 (iii) Focal Point GPSS -4 (iv) Agro-Service
Centres -10 (v ) Private Dealers for Seeds - 345 & Fertilizer/Pesticide - 1371 (vi) Wholesale
Agro. input Dealer - 20 (vii) Principal Input Agencies -8 (viii) Training Institution - 4
(Extension Training Centre,Naltoli; Kishan Vidyapath, Silongoni; Kishan Vidyapath,
Borpukhuri and Farm Machineries Training Centre, Kaliabor) (ix)             Total number of
Tractors -366 (x) Total number of Power Tillers - 932 (xi) No. of sprayers -6742 (xii) No. of
power pumps - 37652 and (xiii) No.of Regd. Pathar Parichalana Samities (PPS) - 1935.

Most of the Primary Agricultural Crop. Societies (GPSSs) are engaged in PDS business only.
In view of the target given by the Govt. of India for doubling the ground level agriculture
credit in 3 years, it is necessary to involve good GPSSs for disbursement of agricultural
loans to the farmers. Keeping this view in mind, the RCS, Govt. of Assam had selected 10
(ten) GPSSs of Nagaon district for disbursement of agrl. loans to the farmers from 2004-05
onwards. However, there was no progress in this regard. It is time now to start the
process of disbursing agrl. loans through good GPSSs. Further, PPSs have to be involved
for assisting bank branches for identification of farmers for issue of all types of agrl.
loans and also for recovery of loans.

Regular occurrence of flood is another          problem being faced by the district for
maintaining/expansion of the cropped area. Infact, the net cropped are has come down
during the last three years due to floods. As mentioned above, there was unprecedented
floods in the district in 2004 causing extensive damage of seedlings and livestock and loss of
crop areas. However, this year till writing of the PLP, the district is experiencing low
rainfall and there has been delay in ploughing as well as sowing of sali paddy seedlings.

The following are the major constraints for production of various crops through bank finance.

(i) Huge overdues of the societies to banks (ii) Most of the societies are defunct due to
erosion in share capital (iii) Slow progress in enrollment of new members in the societies
(iv) Non-preparation of credit limit statements for the non-defaulting members.

2.1.3   Assessment and Phasing of the Potential in Base PLP and Rephasing of
        Potential on account of infrastructure changes for the year 2006-07:
A lot of thrust has been given by the       Govt. of   India for doubling   the ground level
agriculture credit in three years, the potentials as estimated in the Base PLP have been
revised upward to make it realistic with addition of vegetable cultivation and some
modifications due to revision in scales of finance. Further, upward revision of Base

                                            [ 19 ]
                                                                       PLP 2006-07 - Nagaon, Assam

PLP projections was necessitated as the ground level credit flow for short term crops
during last two years had increased manifolds and was higher than the original Base
PLP Projections. The revised Updated PLP Projections for 2006-07 are given below:
                                                                                      (Rs. lakh)
    Activity               Base PLP                         Updated PLP
                      Unit      Bank          Phy.         Scale of    Fin.           Bank
                      (ha)      Loan           (ha)      finance/ha   Outlay           Loan
 Paddy - Sali          1900     396.29         2,000        0.185      380.00           380.00
 Paddy - Boro                                  2,700        0.240      648.00           648.00
 Potato                  150       56.25         500        0.470      235.00           235.00
 Sugarcane               250       94.25         400        0.410      164.00           164.00
 Wheat                   180       28.89         400        0.155       64.00            64.00
 Mustard                 400       49.60         700        0.125       91.00            91.00
 Jute                    300       45.00         600        0.150       90.00            90.00
 Veg- Tomato         -----        ------         100        0.305       31.00            31.00
  ’’-Cauliflower     -----        ------         125        0.420       52.50            52.50
  ’’-Cabbage          ----         ----          125        0.380       47.50            47.50
  “- Brinjal          ----         ----          125        0.170       21.25            21.25
       Total         3,180       670.28       7,775                  1824.25          1824.25
NB:- As the crop loans are to be disbursed under KCC scheme, no margin money has
been proposed and the entire financial outlay has been kept as bank loan. Block-wise
and activity-wise credit projections for the year 2006-07 are shown in Annexure-I.

2.1.4 Review of Ground Level Credit :
Achievement made during last 3 years under production credit against DCP target is given
                                                                                (Rs. lakh)
      Year                        Target                            Achievement
                        Phy.           Bank Loan               Phy.         Bank Loan
    2002-2003            1,752           253.80               5,763           314.17
    2003-2004           18,000           343.40               6,721           625.09
    2004-2005           18,000           575.45               7,745           933.07
It may be seen from the above particulars that the amount of crop loans have gone up to
Rs.933.07 lakhs in 2004-05 from Rs.625.09 lakhs in 2003-04, registering the growth rate of 62%
and this has been possible as there has been demand for production credit by the farmers
as they are now doing multiple crops due to installation of STWs. Bank branches in the
district had financed crop loans in a big way by issuing KCCs to the farmers.

Agency-wise performance under Kisan Credit Card Scheme:
The Kisan Credit Card Scheme has been introduced from 1998-1999 with a view to making
available timely and adequate credit to the farmers for their cultivation needs including
purchase of inputs in a flexible and cost effective manner.

In Nagaon district, 11 Commercial Banks, 1 SCB and 1 RRB are functioning and their
branches are issuing KCCs to the farmers and total KCCs issued by various banks as on
31.03.2005 reached at 21683 as may be seen from the following table.

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