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RABI CAMPAIGN 2015

NABARD

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SEQUENCE OF PRESENTATION

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AGRARIAN CRISIS - Issues

• Climate Change• Declining share of agriculture in GDP :55% population still

depending on agriculture • Large proportion of small / marginal holdings • Limited access to irrigation• Higher indebtedness of farmers as compared to their annual

income • Limited Accessibility to institutional credit

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SOLUTIONS – Role of GOI/SG

• Diversification of livelihood activities – Crop/ Animal Husbandry + NFS

• Drought proofing through Watershed• Shift in focus from production to post-harvest management –

increasing share of farmers in the consumer rupee; • Increasing Warehousing/Cold Storage facilities• Upscaling agri-business and agri-clinic activities• Risk Mitigation through Insurance.

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Credit flow to agriculture

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AGRICULTURE CREDIT – COVERAGE OF SF/MF & TF/OL/SC

ISSUES:•Low coverage of SF/MF by institutional credit- about 44% against 52% for all farming households (NSSO 70th Round)•Lack of access to credit by Tenant Farmers/Oral Lessees/Share Croppers remains challenge

SUGESTIONS – Role of S. Govt.•Formalization of oral leasing , e.g. AP•Promotion of JLGs•Digitisation of land records – access to bankers

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AGGREGATION OF SF/MF & RUPAY KCC

ISSUES:•Increasing marginalization of holdings (average size down from 1.33 ha in 00-01 to 1.15 ha in 10-11)•Rupay KCC – low coverage•Aggregation and marketing of produce of SF/MF

SUGGESTIONS - Role of State Govt.•Promoting POs - 1091 FPOs sanctioned & 563 formed by NABARD •Accelerate issue of Rupay Kisan Credit Card – Cooperatives

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Capital Formation in Agr Falling Trend in Agri Term Loans

(% in overall agricultural credit)

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CAPITAL FORMATION IN AGRICULTURE

ISSUES:•Stagnating trend in capital formation in agriculture •Low share of public sector investment in capital formation (15%)•Infrastructure gaps hinder capital formation and Long Term credit flow

SUGESTIONS – Role of S Govt.•Increasing public investments through RIDF•Focus on Irrigation & Recharging Ground Water•Automated Weather Stations•Policy interventions for stepping up agricultural term loans, High Tech Agr

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Initiatives of NABARD

• 1.47 lakh Farmers’ Clubs promoted with around 22 lakh farmers – Extension agents of State Govts.

• 1,835 Watersheds with 18.98 lakh ha covering farmers in 18 States

• 575 Tribal Development projects with 4.47 lakh acres covering 27 states

• 7.33 lakh rural youth covered under SKILL BUILDING programmes

• Promoting Producers Organization

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Risk Mitigation - CROP INSURANCE - Issues

• Low coverage under crop insurance – under 20%

• Notification of crops – not done by all State Govts.

• High Insurance premiums

• Technology - Delay & authenticity of data through Crop Cutting Exp.

• Temporal variation – insurance phases not aligned with various crop growth

stages - GOI

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• Group insurance scheme for farmers

• Subsidization of premium

• Estimation of crop yield by using Geo informatics technology

• Quick Payout of Compensation & Claims

• Accreditation of Automated WS

Risk Mitigation - CROP INSURANCE -

Suggestions

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THANK YOU

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Sectoral share under RIDF disbursements

29%

30%

15%

14% 12%

Total RIDF disbursements:₹1,66,489 Cr. as on Mar 2015

(₹crore)

Irrigation

Rural Roads

Social Sect.

Agri relatedRural

Bridges

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Spurring Rural Growth - Infrastructure Development

Rural Infrastructure Development Fund (RIDF)•258 lakh ha under assured irrigation

•3.96 lakh km of rural roads (No. of roads:1,08,996)

•9.61 lakh meters of rural bridges (No. of bridges: 18,910)

•Godowns with 8.13 MMT capacity (No. of godowns:1,883)

Warehousing Infrastructure Fund (WIF) 2013-14• 3,523 dry and wet storage units of 9.81 MMT capacity funded

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Spurring Rural Growth - Infrastructure Development

Cumulative Economic and Social Benefits (on 31 March 2015)

Particulars Benefits

•Gross Domestic Product (` cr) 47,843

•Employment (No. of jobs) 179 lakh

Non Recurring Employment• Irrigation (lakh man days) 34,174

• Others (lakh man days) 28,530

• Rural Roads and Rural Bridges

(lakh man days) 50,450

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States implementing Watershed Projects Andhra Pradesh Haryana Uttar PradeshBihar Himachal UttarakhandChhattisgarh MP West Bengal Kerala MaharashtraGujarat OrissaJharkhand KarnatakaRajasthan Tamil Nadu Jammu & Kashmir Telangana

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States implementing Tribal Dev.Projects S.No State S.No State

1 Andaman and Nicobar 14 Maharashtra2 Andhra Pradesh 15 Manipur3 Arunachal pradesh 16 Meghalaya4 Assam 17 Mizoram5 Bihar 18 Nagaland6 Chhattisgarh 19 Odisha7 Gujarat 20 Rajasthan8 Himachal Pradesh 21 Sikkim9 Jammu & Kashmir 22 Tamil Nadu

10 Jharkhand 23 Telengana11 Karnataka 24 Tripura12 Kerala 25 Uttar Pradesh13 Madhya Pradesh 26 Uttarakhand

27 West Bengal