State Focus Paper: 2016-17 Manipur State EXECUTIVE · PDF fileThe population of Manipur as per Census 2011 was 2855794 lakh comprising 1438586 lakh of males and ... State Focus Paper:

State Focus Paper: 2016-17 Manipur State

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EXECUTIVE SUMMARY

1. Introduction

The State Focus paper (SFP) 2016-17, essentially being an aggregation of PLPs, provides a

comprehensive overview of the development perspectives in the State with special emphasis

on“Accelerating the pace of capital formation in agriculture and allied sector”. The document has

brought out the action plan requiring attention of State Government Departments, bankers and other

stakeholders. In addition, it surveys the infrastructure gaps and elucidates the investments and

budgetary support required for infrastructure development.

NABARD closely aligns itself with Governments, banks and financial institutions to dovetail its

developmental agenda with the national strategy of inclusive growth. It also interacts with the rural

community through formal and informal forums. The domain knowledge thus gleaned over years is

articulated annually by NABARD through the State Focus Paper (SFP), prepared for each State by its

respective Regional Offices. This document serves two purposes: (i) it provides the analytical platform

for the banks to prepare their credit plans for the State for 2016-17 and (ii) it provides the state

government with the infrastructure requirements for realizing the credit potential.

2. State Profile

Manipur is one of the smaller States in the North-Eastern corner of India having a total geographical

area of 22,327sq.km, which is 0.7 percent of the total land surface of India. The State has two distinct

topographical zones namely hills and valley. Ninety per cent (20,089 sq. km) of the total geographical

area is covered by the hills and is divided into 05 districts. The central valley portion consisting of 2238

sq. km accounts for only one-tenth of the geographical area and is divided into 04 districts. The State

capital is Imphal. The State has 352 kms long international border with Myanmar (Burma) to the South-

East and 502 kms. long border with the adjacent states of Nagaland and Assam on the West and

Mizoram on the South and the South-West. The State has 60 Development Blocks with 2515 inhabited

villages.

The population of Manipur as per Census 2011 was 2855794 lakh comprising 1438586 lakh of males and

1417208 lakh of females. Density of Population was 128 persons per Sq Km. compared to all India

density of 368 per sq.km (Census 2011). There are 33 different tribes of different ethnic groups. The

valley is a thickly populated area with a density of 730 persons per sq. km as against 61 persons per sq.

km in the hills. Manipur falls under Eastern Himalayan agro climatic zone with two broad topographic

division, viz., planes and hills.

Agriculture continues to be the backbone of the State’s economy. It contributes a major share to the

State Domestic Product. 47.89 percent of the main workers in Manipur are engaged as cultivators and

agricultural labourers. Permanent cultivation is generally practised in the valley districts while terrace

cultivation is practiced in some pockets of the hills where jhuming or shifting cultivation is widely

adopted in most of the hills. The cropping pattern is dominated by rice with acreage of 172.83 thousand

hectares (65.20%) in 2011-12. Area under pulses was 15.97 thousand hectares (6.02%). The food grains

alone accounted for 73.43% of the sown area during 2011-12.


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3. Banking Profile

As on 31.03.2015, organizational structure of banking sector in the State comprised 21 Commercial

Banks, one RRB, one SCB and few other cooperative banks, with a branch network of 167 branches. The

per branch population is 17100 as against national average of 15000.

The aggregate deposits of the CBs, RRBs and Cooperative banks put together in the State as on 31st

March 2015 stood at ₹ 609056.38, whereas the aggregate loans outstanding as on 31st March 2015

stood at ₹ 235452.05 lakh. Credit-Deposit Ratio of the banks as on 31 March 2015 stood at 39% as on

March 2015.

Sectoral Trends in Ground Level Credit Flow years:

The trends of Ground Level Credit flow during the last three years in given below

(₹ in lakh)

Sl. No Particulars As on 3.03.2013 As on 31.03.2014 As on 31.03.2015

1 Crop Production 3565.60 3255.70 4468.02

2 Agriculture Term Loan

including allied activities

8075.60 7204.70 12144.76

3 Total agri advances 11641.00 10460.00 16612.78

4 Non Farm Sector 5064.80 16547.00 21175.36

5 Other Priority Sector 21565.00 18730.00 23148.15

6 Total – Pri Sec Advances 38271.00 45738.00 60936.29

7 % of growth over previous

year

77% 20% 33%

In order to accelerate the process of Financial Inclusion, a comprehensive plan has been prepared for

ensuring ICT based integration, appointment of SHG Leaders/Members as Bank Sakhi/Business

Correspondent (BC) & opening of Ultra Small Branches (USB) in villages etc. All the unbanked blocks

have been identified for opening brick and mortar bank branches as per decision taken in SLBC Meeting.

As on 31.03.2015, 12116 SHGs have been credit linked in the state and the loan availed is ₹ 6710.41

lakh. The Women SHG scheme of Government of India is being implemented in two districts viz.

Churachandur and Tamenglong. Three projects for formation of Joint Liability Groups are being

implemented. Manipur Rural Bank has started financing Joint Liability Groups.

4. NABARD’s perception on the development perspective of the State. In Manipur more than 52.20 of the total working population depends on agriculture & allied activities.

Advanced estimates indicate that at current prices in 2014-15, the Primary sector contributes 21.4% to

the Gross State Domestic Product (GSDP). The primary sector grew at an average rate of 6.20 per cent

between 2004-05 and 2014-15. The secondary sector grew at an average rate of 2.60 per cent during

the period between 2004-05 and 2014-15.

With a large capital stock an economy acquires the capacity to change, innovate and adjust to new ideas and technological advances. Recognizing the importance of capital formation NABARD has chosen the


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theme “Accelerating the Pace of Capital Formation in Agriculture and Allied Sector in Manipur” for State Focus Paper 2016-17 of Manipur. Vision for agriculture sector is to enhance farm production, productivity & income in rural areas through

i) increasing cropping intensity, ii) crop diversification, iii) crop–livestock integrated production system,

iv) cultivation of horticultural & vegetable crops and v) promoting value addition, agro processing and

post harvest management. The strategy for the XII plan period is identified as under:

(i) Enhancing farm production and productivity

Enhancing cropping intensity

Bringing more areas under cultivation

Enhancing use of Micro-irrigation systems

Adoption of appropriate Slope Area Cultivation techniques

Extension services to be strengthened for sensitizing and equipping farmers to take up

appropriate crops in Kharif & Rabi seasons.

Adoption of Systemic Rice Intensification (SRI) practice to be encouraged at suitable places

Adoption of crop livestock integrated production system.

Crop diversification & cultivation of vegetables and horticultural crops.

Organic farming.

(ii) Enhancing income of the farmers – Promoting value addition, agro processing & post harvest

management

(iii) Enhancing farm mechanisation, adopting modern methods of cultivation, latest technology and

technical implements.

Rice is the staple food of Manipur and is grown in both the hills and the plains. In 2013-14, total

production of paddy (rice) was 588,870 metric tonnes in the state. Rice and cash crops make up for the

main vegetation cover in the valley area of state.

The impact of climate change on agriculture could result in problems with food security and may

threaten the livelihood activities upon which much of the population depends. Climate change can

affect crop yields (both positively and negatively), as well as the types of crops that can be grown in

certain areas, by impacting agricultural inputs such as water for irrigation, amounts of solar radiation

that affect plant growth, as well as the prevalence of pests. National Bank for Agriculture and Rural

Development (NABARD) has been accredited as the first National Implementing Entity (NIE) of Green

Climate Fund (GCF) established under United Nations Framework Convention on Climate Change

(UNFCCC).

The state is predominantly rural and the holdings are very small. According to Agriculture Census 2010-

11, about 83.29 percent of operational holdings constituted Small and Marginal Farmers in Manipur.

Due to the problem of fragmentation of land holdings, there is consequential impact on farm viability

which is one of the important issues that need to be addressed through consolidation of land holdings,

innovative ways to stop further fragmentation of land holding through a suitable legal framework

containing incentives and disincentives, etc.


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Collectivizing farmers into Producer Organizations (POs) has been considered as one of the way to

overcome the challenges faced by the small and marginal farmers. Under the 12th Five Year Plan of the

Government of India, promotion and strengthening of FPOs has been one of the key strategies to

achieve inclusive agricultural growth.

The practices of Jhum cultivation could not be successfully addressed by any scheme sponsored by Government till date. As such, it may be conducive to introduce Slopping Agricultural Land Technology (SALT) in the area of Jhum or Shifting cultivation with adoption of improved agriculture tools.

5. Potential Credit Outlay for 2016-17

The State Focus Paper (SFP) presents a systematic assessment of potential for purveying credit in 09

districts of Manipur for 2016-17. The document also carries details (district-wise, sector-wise and

investment purpose-wise) for the year 2016-17 in Annexure I.

Potential priority sector credit for the State as a whole for 2016-17 has been at ₹ 1959 crore, which

is an increase of 11 percent over the PLP projections of ₹ 1758 crore for the previous year. Out of

the potential projections for 2016-17, 63 percent constitutes crdit potential in Agriculture Sectors-

farm credit, credit to Agriculture Infrastructure and Ancillary activities. The total agriculture These

projections were based on parameters such as technical feasibility, availability of infrastructure,

availability of exploitable resources, cropping pattern, agriculture practices and other developmental

indices such as access to markets, etc. The summary of sub sector is given below:

Sr. No Details of Sub-Sectors ↓ PLP Projections for 2016-17 (₹ in lakh)

I Credit Potential for Agriculture

A Farm Credit

i Crop Production, Maintenance and Marketing 99397.08

ii Water Resources 1181.56

iii Farm Mechanisation 3382.73

iv Plantation and Horticulture (including sericulture) 3282.92

v Forestry and Waste Land Development 462.38

vi Animal Husbandry – Dairy 3086.66

vii Animal Husbandry – Poultry 1558.22

viii Animal Husbandry – Sheep, Goat, Piggery, etc. 2292.25

ix Fisheries (Marine, Inland, Brackish water) 2951.39

x Others – Bullock, Bullock cart, etc. 154.47

Sub-Total 117749.66

B Agriculture Infrastructure

i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage chains)

1379.31

ii Land development, Soil conservation, Watershed development

370.39


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

83.62

Sub-Total 1833.32

C Ancillary activities

i Food and Agro processing 4449.17

ii 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)

43.83

Sub-Total 4403

Total Agriculture 123985.98

II Micro, Small and Medium Enterprises

i MSME – Working capital 11230.76

ii MSME – Investment credit 27397.96

Total MSME 38628.72

III Export Credit 1459.5

IV Education 8934.79

VI Housing 13996.5

VI Renewable Energy 474.2

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

7326.15

VIII Social Infrastructure involving Bank Credit 1096.85

TOTAL PRIORITY SECTORS 195902.69

Details of Sectoral Issues and Concerns, Action points are discussed in Chapter IV 6. Infrastructure Planning Infrastructure plays a pivotal role in harnessing the potential available in different sectors of the

economy. While suitable physical infrastructure fosters growth and development by enhancing the

productivity of factors engaged in production process, social infrastructure is important for improving

the efficiency of human capital. As such, availability of adequate and appropriate infrastructure can

catalyze the developmental process. Development and maintenance of sound physical and social

infrastructural facilities are essential for agriculture, industrial and over all development of an economy.

Rural Infrastructure Development Fund

An important developmental initiative of the State Government is investing in infrastructure and

providing different services related with it. Towards this task, the State Govt. has been augmenting its

budgetary resources from the Rural Infrastructure Development Fund (RIDF) operated by NABARD. Till

date (31 January 2016), 285.26 crore has been sanctioned to the Govt. of Manipur by NABARD for 417

projects and ₹ 176.33 crore has been disbursed so far. The maximum investment of ₹ 134.80 crore is


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under Flood Control sector, followed by Rural Connectivity at ₹ 48.79 crore, Health Sector at Rs 43.11

crore and Minor Irrigation at ₹ 38.60 crore. For investments ender Food Park and Fishery secor, the

amounts are ₹ 15.14 crore and ₹ 4.30 crore respectively.

The investments for Minor Irrigation from the RIDF have resulted in generating additional irrigation

potential for 8098 ha. of land The RIDF has also supported rural connectivity in the State, by financing

about 100 km of rural roads.

A detailed assessment of infrastructure gaps has been made in the State Focus Paper (SFP)

district-wise and sector wise, to enable the State Government to consider, while proposing projects for

support under RIDF for 2016-17.

Storage Godown / Marketing Infrastructure: There are no godowns available in the district head

quarters where the farmers can store their agricultural surpluses in order to avoid distress selling. There

is, therefore, a need for creation of godowns preferably in the range of 10-15 thousand metric tonnes

capacity in each district.

Marketing of agricultural produce in the State is unorganized with no regulated markets necessitating

the State to bring in enabling legislation for creation of APMC and also construction of market yards with

ancillary facilities. There is abundant scope for creation of storage and market yards in the districts of

Imphal East, Imphal West, Bishnupur, Thoubal and Churachandpur.

Rural Connectivity: There is a huge gap in the potential and actual road density in the State adversely

affecting the rural house hold income. The PWD is implementing various road projects under State Plan

and Centrally Assisted Programmes. The State can take advantage of loan under RIDF to develop

panchayat and block level roads to connect with State and National Highways.

Electricity: There is acute shortage of power supply in the whole State. Provision of adequate &

uninterrupted power supply is one of the thrust areas of the State Government. In this context, Micro

Hydel Power Projects have an advantage over Grid Electricity for its lower cost apart from

environmental issues. There are a number of rivers flowing in the state where Mini Hydel Projects could

be set up. The State Government may submit a comprehensive plan for electrification of rural areas

based on Hydel and non-conventional sources like solar to NABARD for consideration of financial

assistance under RIDF. All hill districts and Bishnupur district having Loktak Lake are ideal for

consideration of implementation of above mentioned projects.

Agro Processing: The State produces a variety of horticultural crops like Pineapple, Passion Fruits and

Citrus. The State has good potential for setting up of horticulture based processing units to provide

backward & forward linkages.

7. Area Based schemes Considering the large number of small and marginal farmers and people below the poverty line in the

country and also the extensiveness of agriculture and rural development, there is a need for promoting

single purpose small projects/schemes on a cluster basis. These cluster based single purpose small

projects taken together are nomenclatured as Area Development Projects/Schemes e.g. financing of


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dairy units, financing of dug wells/ pumpsets/ borewells/ shallow tube wells, financing of sericulture,

other horticulture crops, farm forestry projects etc. and sanctioned to a single bank or to a number of

banks. Besides the exigency of economic development of the people at large, it facilitates planning and

execution of infrastructure facility viz. backward and forward linkages for full realisation of the benefits

of the projects/schemes. Those backward and forward linkages also be planned and executed with

credit support. If the needs of inter-related activities are addressed in a focused manner, the overall

results will be self-sustaining.

Area based schemes which are pre-dominant activities in the districts have been identified and

incorporated in the PLPs for 2015-16. The focus is to give thrust to the identified sector/activity

by enhancing term loan disbursements through a banking plan.

Implementation of area based schemes is a coordinated effort of DDM, NABARD Lead Bank,

other Banks, line departments and other important stakeholders in respective district.

8. Policy Initiatives The Government of India, Reserve Bank of India, State Governments and NABARD have been taking a number of policy measures for the development of agriculture and rural sectors and accelerating credit flow. The important measures/initiatives/ innovations are given below. Policy Initiatives of GOI

Ministry of Agriculture renamed as Ministry of Agriculture and Farmers Welfare

Digitization of land resource inventorization for micro-level agricultural land use planning.

Project for hill agriculture under National Mission on Sustaining Himalayan Ecosystem (to applicable states)

Countrywide digital agricultural research database - Knowledge based Resource Information Systems Hub for Innovations (KRISHI) in agriculture.

Soil Health Cards (SHCs) to all 14 crore holdings in the country.

Groups of farmers to be motivated to take up organic farming under Paramparagat Krishi Vikas Yojna (PKVY). In three years 10,000 clusters to b e formed covering 5.0 lakh acre area under organic farming.

Launching of Swachh Bharat Mission

National Rural Drinking Water Programme (NRDWP) for the benefit of all segments of rural population.

Attracting and Retaining Youth in Agriculture (ARYA) towards agriculture and agriculture related income generating enterprises to check rural migration.

Student READY (Rural Entrepreneurship and Awareness Development Yojana) to promote professional skills, entrepreneurship, knowledge and marketing through hands-on experience.

Special scheme in North-Eastern Region for promotion of organic farming and export of organic produce.(To applicable states)

Pradhan Mantri Krishi Sinchai Yojana (PMKSY)-To ensure access to some means of protective Irrigation to all agricul tural farms to increase production and productivity and enhance farm Income (more crop per drop).

Promotion of National Market through Agri Tech Infrastructure Fund (ATIF) to provide e-marketing platform at the national level in 642 regulated markets across the country.


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Price Stabilisation Fund to support market interventions for price control of perishable agri-horticultural commodities.

Make in India –Facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure.

Announced an increase of 50% in the relief on input subsidy given to farmers and the threshold for eligibility has been reduced to 33% for farmers affected by hailstorms and unseasonal rains and other natural calamities.

Micro Units Development and Refinance Agency Ltd (MUDRA) launched to extend finance and credit support to Microfinance Institutions (MFI) and agencies that lend money to small businesses, retailers, self-help groups and individuals.

The schemes of Mega Food Parks, Cold Chain and Modernization of Abattoirs further up-scaled during the 12th Plan. 12 new Mega Food Park projects, 75 Cold Chain projects and 50 Abattoir projects has been approved for implementation during the 12th Plan.

Parity in Development to Eastern and North Eastern regions was also advocated. • Improve employability of rural youth under the Deen Dayal Upadhyay Gramin Kaushal Yojana. • Promotion of Solar Energy

Pradhan Mantri Suraksha Bima Yojna, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana launched

Pradhan Mantri Jan Dhan Yojana (PMJDY). NABARD’s efforts in this field include facilitation of financial literacy and supporting technological upgradation of cooperative banks and RRBs.

Policy Initiatives of Reserve Bank of India In terms of the Revised Priority Sector Guidelines:

Categories of the priority sector: Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector, in addition to the existing categories.

Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within agriculture, to be achieved in a phased manner i.e., 7 percent by March 2016 and 8 percent by March 2017.

Micro Enterprises: A target of 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises, to be achieved in a phased manner i.e. 7 percent by March 2016 and 7.5 percent by March 2017.

Bank loans to food and agro processing units will form part of Agriculture.

The loan limits for housing loans and MFI loans qualifying under priority sector have been revised.

Banks to ensure that their overall agriculture direct lending to non-corporate farmers does not fall below the system-wide average of the last three years achievements.

Banks to continue to maintain all efforts to reach the level of 13.5% direct agriculture lending to the beneficiaries who earlier constituted the direct agriculture sector.

Guidelines for relief measures by banks in areas affected by Natural Calamities have been revised.

Policy Initiatives of NABARD

Medium Term Refinance Product- The medium term refinance product will include all the investment credit activities eligible for getting long term refinance from NABARD.

Long Term Rural Credit Fund: An amount of ₹ 15000 crore has been allocated under LTRCF


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NBFC-Relaxation- Refinance to NBFCs and NBFC-MFIs registered and operating in the states in the Eastern region, North-Eastern region including Hilly states, Lakshadweep and Chhattisgarh with rating norms relaxed.

₹ 25,000 crore has been allocated under RIDF for 2015-16.

Following new activities have been included for financing under RIDF:-

a) Solid Waste Management and Infrastructure works related with sanitation in Rural areas b) Infrastructure works related with alternate sources of energy viz. Solar, wind, etc. and

Energy conservation c) Hydel projects upto 25MW ( from existing 10 mw) d) 5/10 mw Solar Photovoltaic Power Plant

Assistance to RRBs and Cooperative Banks for training the BCs/CSPs/BCAs/BFs engaged by them is available for capacity building in the areas of banking/financial products and services

A Special Fund with a corpus of ₹ 2000 crore was created in NABARD 2014-15 for making available affordable credit to agro-processing units in the Designated Food Parks (DFPs) and individual processing units set up in the DFPs.

Funding under NIDA to State Government and State owned institutions for development of infrastructure in rural areas.

Guidelines for relief measures by banks in areas affected by Natural Calamities have been revised.

NABARD has been accredited as National Implementing Entity of Green Climate Fund

The Green Climate Fund has been designated as an operating entity of the financial mechanism of the UNFCCC to promote a paradigm shift towards low emission and climate resilient development pathways.

Constituted National Advisory Committee on Produce Fund along with other officials from MoF, MoA, GoI, NDDB, SFAC etc., to review the critical issues relating to FPO sector.

NABKISAN Finance Ltd., a subsidiary of NABARD to provide financial support to eligible FPOs with refinance assistance and other support facilities from NABARD

A scheme has been introduced for promotion of Farmer Producer Organisations (FPOs) for implementation by partnering with technically competent agencies.

NABARD has started a Pilot programme for Digitization of SHGs


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MAP OF MANIPUR


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Documents

State Focus Paper: 2016-17 Manipur State EXECUTIVE · PDF fileThe population of Manipur as per Census 2011 was 2855794 lakh comprising 1438586 lakh of males and ... State Focus Paper: