PLP 2016-17 Champhai District

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EXECUTIVE SUMMARY

"Accelerating the pace of capital formation in agriculture and allied sector”

Champhai district has three revenue sub-divisions viz. Champhai, Ngopa and Khawzawl and 4 rural development blocks viz. Champhai, Khawzawl, Ngopa and Khawbung. The district is bounded on the north by Churachandpur district of Manipur, on the west by Aizawl and Serchhip districts, and on the south and east by Myanmar. The district occupies an area of 3185.83 sq. km. The district has the distinction of having few pockets of plain lands surrounded by hills with gentle slope. The district has 10 places of tourist attraction. Champhai is connected only by road with the State Head Quarter i.e. Aizawl. The district has total population of 125,745. The percentage of rural population is much higher than the urban population. The population density in the district is 39 per sq. km. Literacy rate of Champhai in 2011 was 95.91 compared to 91.15 in 2001. If things are looked out at gender wise, male and female literacy were 97.21 and 94.59 respectively. Agriculture is the major occupation of the people of this district. The main crop grown here is rice. Due to the cultivation of rice on large acres of lands and because of the maximum amount of rice production, this district is known as the ‘Rice Bowl of Mizoram’. The Agro-climatic conditions, fertile soil and abundant rainfall are favorable for horticultural fruits like oranges, banana, grapes, pineapple and crops like paddy and vegetables like cabbage, cauliflower, tomatoes, leafy vegetables, ginger etc. The diversification of crops would increase the production and income of the growers, which would in turn boost the economy of the district. The Champhai town also serves as a gateway of all business activities between the two nations – India and Myanmar. There are 18 bank branches in the district out of which SBI has 4 branches; HDFC, Canara Bank & MCAB have 1 each and MRB has 11 branches. The total deposit & loans and advances outstanding of the Commercial banks as on 31 March 2015 stood at Rs.8822.00 lakh & Rs.5260.00 lakh. The total deposits & loans and advances outstanding of MRB in Champhai district stood at Rs.7032.00 lakh & Rs.5446.00 lakh as on 31 March 2015. All the branches of the MRB have migrated to CBS platform. Mizoram Cooperative Apex Bank Ltd. (MCAB) has total deposit & loans and advances outstanding of Rs.3085.00 lakh & Rs.2482.00 lakh as on 31 March 2015. The CD ratio of the district is 69.63%. Institutional credit flow towards agriculture especially crop loan (KCC) issued of being 651 nos with a target of 920 nos. and overall sanctioned limit of Rs. 373.12 lakh. As against the target of Rs.2974 lakh under the Annual Credit Plan for the district, an amount of Rs. 2125.13 lakh was disbursed during the year 2014-15 for various sectors, recording an achievement of 71.46% only. Achievement under crop loan was to the tune of 22%, which was lower than previous achievement i.e. 2013-14 (39.56%) where as agriculture term loan was 72.70% much higher than previous year achievement of only 11.57% Agency-wise analysis of targets and achievements under ACP shows that MRB achieved the highest with 245.74% followed by Cooperative Banks of 31.57% and Commercial Banks 29.85% of the targets allocated to them. A base PLP for Champhai district for five year co-terminous with the XII Five Year Plan-(2012-2017) was prepared by NABARD and the base PLP projections made for the year 2016-17 are reviewed and updated taking into account the revisions in unit costs & scale of finance, existing infrastructure & support services, credit delivery network and the GLC flow during the past three years and other relevant factors. As per the realizable potentials estimated under PLP, credit potential for FY 2016-17 has been assessed and upwardly revised and the increase of 36 % from 2015-16 PLP projection has been considered in the estimated potential for FY 2016-17 which amounts to Rs.6461.71 lakh. A participatory approach has been followed by involving different agencies / departments and banks operating in rural areas. The Planned priorities of these agencies / departments have been dovetailed along with the planned priorities of the central and state governments to arrive at the Credit Potential of the District. The following paragraphs briefly outline the essential features of the Potential Linked Credit Plan for the year 2016-17. The estimated institutional credit potential in broad sector wise and sector wise are mentioned below:

PLP 2016-17 Champhai District

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Irrigation & land development are the essential activities in agriculture operations reflecting in agriculture crops production. Further, agriculture is the major occupation of the people of this district, particularly field crop like paddy are mostly cultivated in stretches of plain land utilizing surface irrigation in order to meet the challenges of sustaining the production & productivity thereby increasing the irrigable area and land development. Accordingly, a credit projection of Rs.70.74 lakh for minor irrigation and Rs.38.54 lakh for land development activities have been arrived at for the year 2016-17, also under Vermi-composting credit potential of Rs.2.14 lakh is projected. Mainly Tractors and power tillers are the components projected under Farm Mechanization (FM) to require a credit flow of Rs.106.49 lakh during 2016-17. Power Tillers are the appropriate FM devices in the district. Demand for tractors in the district is also gradually increasing in view of potential availability of WRC farmers having larger area in plain lands, physical targets under this is upwardly revised besides tractors can also be used for transportation purposes of agriculture produces etc. Increased area under irrigation, land development and farm mechanization activities may lead to higher crop loan off-take in the district. Accordingly, a credit projection of Rs.2413.98 lakh has been made under crop loan during 2016-17. Horticulture crop production is also very important agriculture activity in the district. The horticulture and plantation development in the district envisages a credit flow of Rs.654.59 lakh during 2016-17. Fruits crop like kiwi, plum, mango, strawberry, Assam lemon etc are gradually picking up in the district besides the other main fruit crops cultivated like orange, grape. Crops like ginger, turmeric are some of the important crops picking up increasingly in the district. The Animal Husbandry sector has immense importance in the district and there is a great demand for dairy, piggery & poultry farming. These sectors are picking up with the assistance of NLUP programme implementing in the district. Accordingly, the potential for credit flow during 2016-17 has been projected at Rs.215.46 lakh, Rs.221.49 lakh and Rs.344.83 lakh for dairy development, poultry and sheep/goat/piggery activities respectively. Fish Farming also supplements the income of the farmers. Fishery development in the district is becoming popular day by day & there is good scope for commercialization as many fish farmers & fish ponds/farms are coming up in the district. Besides, the WRC farmers who are doing integrating farming through paddy cum fish culture are getting income from both the activities. There is a good demand for fish in the district. Accordingly, an amount of Rs. 63.49 lakh has been projected for the year 2016-17. This year Ancillary activities being included is projected at Rs.12.00 lakh under loans to PACS/LAMPS. So, the total credit requirement for agriculture is projected at Rs.4143.75 lakh for the year 2016-17. Under MSME sector the projection is made at Rs.948.39 lakh where development is the necessity for employment generation. Industry serves as a support system to agriculture. People residing in the districts are also gradually picking up none farm based activities in retail business, artisans, handicraft, handloom, carpentry, transport operators etc. Under Credit Potential for Housing, Education and Others sector (Loans to SHGs/JLGs, loans to distressed persons PMJDY) the credit projections of Rs.162.00 lakh, Rs.701.57 lakh and Rs.506.00 lakh is made respectively for the year 2016-17. The development interventions in the district are aided by Capital Investment Subsidy Schemes of GoI in respect of Animal Husbandry Schemes, Rural Godowns, Organic Farming etc. Government Sponsored Programmes & schemes like PMEGP, IAY, KVIC, RKVY, NFSM etc., also helped development of rural and urban poor in the district. The development of women through the formation of SHGs and linkage with the banks is taken up by NGOs and SHPIs supported by NABARD. They are projected to be the ideal developmental tool to ensure access to banking services in the years to come, leading to socio–economic empowerment of the women and the resultant all round development of the district. Government of Mizoram has implemented an ambitious programme called New Land Use Policy (NLUP) in the State. The activities under NLUP are integrated development, wean away farmers from jhumming (shifting cultivation) practices to adopt sustainable on-farm and off-farm economic activities, introduction of commercial farming in place of subsistence farming/cultivation, improve income level of urban and rural poor through sustainable farming activities, micro enterprises, cottage industries, etc. to create food security for all and to restore

PLP 2016-17 Champhai District

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ecological balance through rejuvenation of forest, improvement of land and water management, introduction of new forest and land management systems. Infrastructure requirement: Marketing facilities are inadequate and there is no agro processing units located in the district. Lack of quality planting materials may also be another factor for insufficient production. Food processing units for plantation and horticulture products, Cold Storage, Zero Energy cold chamber, commercial nurseries and high-tech protected structures/green houses may be suggested for infrastructure development. As per estimated total potential for promotion and saving linkage of 1478 SHGs in the district, the credit projection for 2016-17 under SHGs is estimated at Rs.409.50 lakh considering 20% availability from the total estimated potential both for new groups & matured groups. So far, 693 nos of SHGs have been promoted in the district, thereby leaving a gap for promotion of further 785 SHGs. The JLG mode of financing serves as collateral substitute for loans provided to the small, marginal, tenant farmers, oral lessees, share croppers, etc. Hence, the banks in the district may increase their financing to the small, marginal, tenant farmers and oral lessees through JLG mode of financing. Considering more numbers of small and marginal farmers present in the district, there is potential for financing of 130 nos JLGs in the district during 2016-17. There is a need of bank branches to take active part in financing through this mode and promote more JLGs so as to enhance the credit flow to agriculture and allied sector. The GoI’s scheme promotes five lakh JLGs under “Bhoomi Heen Kisan” scheme to be implemented by the banking system to widen the access to credit. Area development scheme: The activity under Paddy cum Fish culture is projected as area development scheme, where there are enough stretches of plain land in the district, as well as most of the WRC farmers in the district are commonly practicing this method in their rice field. Fisheries with integrated paddy cum fish farming which are now popular activities in the district with immense potential for qualitative and quantitative growth are consider to be some of the area based activities/schemes. With upgradation and scientific technique and infrastructure facilities, famers would be able to increase more from the returns compare to their usual common practices. All this call for a coordinated approach amongst the different stakeholders for enhancing the capital formation, strengthening of the credit flow reporting system to Lead Bank, periodic review of the progress in the meetings of DCC, financial inclusion initiatives under the PMJDY, PMJJBY, PMSBY, APY & MUDRA Loan and giving thrust on activities that will ensure better access to credit facilities to the unreached segments.

PLP 2016-17 Champhai District

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Broad Sector-Wise PLP Projections -2016-17 (Rs.lakh)

Sr. No. Particulars PLP Projections 2016-17

A Farm Credit i Crop Production, Maintenance and Marketing 2413.98 ii Term Loan for agriculture and allied activities 1677.09

Sub Total 4091.07

B Agriculture Infrastructure 40.68 C Ancillary activities 12.00 I Credit Potential for Agriculture (A+B+C) 4143.75 II Micro, Small and Medium Enterprises 948.39 III Education 162.00 IV Housing 701.57 V Others 506.00

Total Priority Sector (I to V) 6461.71

PLP 2016-17 Champhai District

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Summary of Sector / Sub-sector wise PLP projections - 2016-17

(Rs.lakh) Sr. No. Particulars PLP Projections

2016-17 I Credit Potential for Agriculture

A Farm Credit i Crop Production, Maintenance and Marketing 2413.98

ii Water Resources 70.74 iii Farm Mechanisation 106.49 iv Plantation and Horticulture (including sericulture) 654.59 V Animal Husbandry – Dairy 215.46

Vi Animal Husbandry – Poultry 221.49 Vii Animal Husbandry – Sheep, Goat, Piggery, etc. 344.83

Viii Fisheries (Marine, Inland, Brackish water) 63.49 Sub Total 4091.07

B Agriculture Infrastructure I Land development, Soil conservation, Watershed

development 38.54

Ii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting)

2.14

Sub Total 40.68 C Ancillary activities

I Others (Loans to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending to agriculture)

12.00

Sub Total 12.00 Total Agriculture (A+B+C) 4143.75

II Micro, Small and Medium Enterprises i MSME – Investment Credit 792.87

ii MSME – Working Capital 155.52 Total MSME 948.39

III Education 162.00 IV Housing 701.57

V Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST)

506.00

Total Priority Sector (I to V) 6461.71

PLP 2016-17 Champhai District

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PLP 2016-17 Champhai District

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PLP 2016-17 Champhai District

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