Karimganj District, Assam

8/3/2019 Karimganj District, Assam

1/87

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]

PLP 2006-07 Karimganj, Assam


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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

PLP 2

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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


15


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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


16


19/87

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.


17


20/87

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.


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


19


22/87

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.


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.


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.



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


21


24/87

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.


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.


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),


22


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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.


24


27/87

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.


25


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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.


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.


26


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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.



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


27


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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.


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.


28


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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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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



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.


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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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



Purpose-wise credit flow in the district is not available due to non-stabilisation of SAMIS.

Hence no trend analysis could be established.


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.



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.


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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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

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