Karimganj District, Assam

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POTENTIAL LINKED CREDIT PLAN

(2006-2007)
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DISTRICT : KARIMGANJ, ASSAM
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National Bank for Agriculture and Rural Development
Assam Regional Office
Laxmi Bhavan, Panbazar, Guwahati - 781 001
Tel: 2540873, 2540875, 2523872, 2519247 Fax: 2541131
e-mail : nabassam@dataone.in
PLP 2006-07 Karimganj, Assam
C O N T E N T S
Initiatives taken by NABARD for development of the districts.
Information on the selected commodity of the district Annexure VIII
Model Schemes relevant for the District Annexure VII
Unit cost for NFS activities finalised at District Level Annexure VI
Unit Cost Committee Annexure V
Scales of Finance for different crops as approved by DLTC
Annexure IV
Sector wise Ground Level Credit Flow under Agri. and Allied activities Annexure III
An Overview of Ground Level Credit Flow - Agency wise
Annexure II
Activity wise / Block wise Potential Linked physical and financial estimates
Annexure I
83 Response from the farmers Chapter VIII
75 Policy initiatives of GoI/State Govt./RBI/NABARD and other agencies Chapter VII
71 Performance of Credit agencies Chapter VI
67 Role of Informal Credit Delivery System Chapter V
63 Support requirement for Government Sponsored Programmes Chapter IV
56 Infrastructure Support Chapter III
54 IV. Other Priority Sectors
46 III. Non-farm Sector Activities
45 13. Other Allied Activities (Bullock/Bullock carts, etc.)
43 12. Renewable sources of energy and waste utilisation
42 11. Storage/Godowns and Market yard
39 10. Fisheries
37 9. Sheep, Goat and Piggery
35 8. Poultry
33 7. Dairy Development
B. Investment Credit for Allied Activities
29
6. Forestry and Wasteland Development, Biodiesel & jatropha and Bamboo
Plantation & development
27 5. Plantation & Horticulture, MAPs & Sericulture
25 4. Farm Mechanization
21 3. Land Development
19 2. Minor Irrigation
A. Investment Credit for Agriculture
II. Investment Credit for Agriculture and Allied Activities
15 1. Crop loan
I. Sectoral Review and Potential projections Chapter II
12 Introduction Chapter I
11 Summary of Detailed Sector-wise PLP Projections
10 Summary of Broad Sector-wise PLP Projections
6 District Profile
1 Executive Summary
Page No Items
Chapter
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 been
identified 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.
1
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 be
exploited 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.
2
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
3
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.
4
District Map
5
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) : 331.25
No. 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
6
(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 23.69
Above 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 fertilisers
and 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 : 1,03,253
b 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
7
(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 production
of 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.
8
D - II
Economic Indicators of the Credit Delivery System - Key Banking Statistics
(As on 31 March 2005)
37.65 NA NA NA NA NA Net NPA to total assets (%) 19
691.4 550.26 104.33 - - 36.81 Overdue position 18
37.65 33.32 63.25 - - 0.30 30 June 2005
36.2 30.40 59.50 - 1.80 30 June 2004
31.3 24.10 60.60 - - 2.70 30 June 2003
DCB Position % of recovery as on 17
22.25 21.71 24.94 - - 25.22 CD Ratio 16
5.46 5.18 5.39 - - 12.81 % of Agrl. advances to
total advances
15
176.77 266.9 78.78 - - 97.67 Loan outstanding per
branch
14
2.69 3.24 1.26 - - NA Loan outstanding per
account
13
53.99 54.3 63.52 - - 2.78 b) 2005 over 2004 (%)
27.01 22.35 68.32 - 7.34 a) 2004 over 2003 (%)
% increase in outstanding 12
13,601.45 11119.38 2189.89 - - 301.18 Total Loans o/s as on
31.3.2005
11
13.03 12.13 22.27 - NA -3.99 b) 2005 over 2004 (%)
9.49 7.84 19.83 - NA 13.69 a) 2004 over 2003 (%)
Growth in deposits 10
898 1378.51 386.2 - - 371.66 Average deposits per
branch
9
44,900.29 37219.86 6565.44 - - 1,114.99 Total deposits as on
31.3.2005
8
18 33 53 - 298 298 Average No.of villages
covered per branch
7
20,074 37173 59040 - 501,839 334,559 Average population per
branch
6
66 82 63 - - NA No.of loan accounts per
branch
5
3,284 2,220 1,064 - - NA No.of loan accounts (under
priority sector)
4
NA NA NA - NA NA No. of Staff per branch 3
50 27 17 1 2 3 Total
17 9 3 1 2 2 c) Urban
2 1 - - - 1 b) Semi Urban
31 17 14 - - - a) Rural
Branch Net work
50 27 17 1 2 3 No.of Branches 2
11 7 1 1 1 1 No. of Banks 1
Total Com.
Banks
RRB PCARDB SCARD
B
Apex
Bank
Particulars Sl.
No.
* NA - Not available
9
SUMMARY OF BROAD SECTOR WISE PLP PROJECTIONS 2006-07
DISTRICT : KARIMGANJ
STATE : ASSAM
(Rs. Lakh)
4611.00 TOTAL PRIORITY SECTOR ( 3+4+5 )
3164.00 OTHER PRIORITY SECTOR 5
713.80 NON FARM SECTOR AND WORKING CAPITAL 4
733.20
TOTAL PRODUCTION AND INVESTMENT CREDIT UNDER
AGRICULTURE AND ALLIED ACTIVITIES (1+2 )
3
317.20
TERM INVESTMENT FOR AGRICULTURE AND ALLIED
ACTIVITIES
2
416.00 CROP PRODUCTION 1
Financial
Projections
SECTOR
Sl.
No.
10
SUMMARY OF DETAILED SECTOR WISE PLP PROJECTIONS 2006 - 07
District : Karimgang
Name of the State : Assam
(Rs. Lakh)
17.00
1.45
19.70
45.95
37.30
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 Horticulture
Forestry 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 Projection Sector Sr. No.
11
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 and
constraints in implementation, etc. were also kept in view while phasing the identified
12
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, except
under 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 more
participative 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
13
been advised to circulate the accepted block-wise/activity-wise potential to all their
branches for preparing their Branch Credit Plans. The branch Credit Plans are required to
be discussed and aggregated to form the Block Credit Plan in the Special Block Level
Bankers Committee (BLBC) meetings. The Block Credit Plans would be further aggregated
by the Lead District Manager to form the District Credit Plan. AAP/DCP is to be launched
by 01 April after final acceptance/approval by DCC.
With the liberalisation and globalisation of Indian Economy in general and agriculture
sector in particular, the agricultural sector needs to be more responsive and competitive to
face the external challenges. This would necessitate huge investments in infrastructure,
technology, post harvest management, research and development, extension services, etc.
Credit planning will therefore continue to play a significant role in ensuring prioritization
and making available adequate credit to various sectors of rural economy. Towards this
end, the present PLP document for the year 2006-07 will prove to be useful to all agencies
and functionaries associated with the rural development especially to the bankers in
preparing District Credit Plans by duly recognising the potentials available in each sector
of the district economy.
14
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:
2,710 Pasture land 11
8,400 Land under misc. Trees, groves etc. 10
2,100 Cultivable waste land 9
9,513 Fallow land 8
24,487 Land put to non-agriculture 7
54,504 Forest 6
14,592 Barren & uncultivable land 5
33,009 Area sown more than once 4
64,594 Net sown area 3
97,603 Gross cropped area 2
180,900 Geographical area 1
Area (ha.) Particulars Sl. 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
multiple cropping and distributing improved seeds under programme like NWDPRA and
ARIASP.
The Indian Council of Agricultural Research (ICAR) has recently given approval for setting
up 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 sources
and 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 the
farmers. 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 2006-07
Keeping 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)
48.30 32.20 200 0.161 46.93 46.93 311 0.151 Ha Summer rice
141.60 230.10 1300 0.177 432.17 432.17 2882 0.151 Ha Winter rice
113.40 37.80 200 0.189 92.03 92.03 565 0.163 Ha Autumn rice
Bank
Loan
Fin.
Outlay
Phy.
Units
SoF
Bank
Loan
Fin
Outlay
Phy.
Units
SoF Unit
Updated PLP Base PLP
Activity
16
416.00 416.00 2600 651.04 651.04 Total
7.56 5.00 10 0.500 2.07 2.07 11 0.180 Ha Ginger
12.00 12.00 50 0.606 2.89 2.89 19 0.150 Ha Turmeric
0.36 1.68 14 0.120 0.29 0.29 2 0.120 Ha Onion
1.20 17.40 145 0.120 1.04 1.04 9 0.120 Ha Chilly
53.64 21.90 49 0.447 48.73 48.73 120 0.407 Ha Potato
25.45 5.09 10 0.509 13.13 13.13 45 0.293 Ha Sugarcane
1.44 1.44 6 0.240 1.28 1.28 5 0.240 Ha Jute
3.84 26.88 280 0.096 3.86 3.86 40 0.096 Ha
Rape /
Mustard
0.21 3.85 55 0.070 0.20 0.20 3 0.070 Ha Linseed
0.00 6.50 100 0.065 0.08 0.08 1 0.065 Ha Seasum
4.50 8.25 110 0.075 4.43 4.43 59 0.075 Ha Other Pulses
0.90 2.25 30 0.075 0.78 0.78 12 0.065 Ha Pea
0.30 0.30 5 0.060 0.25 0.25 4 0.060 Ha Black gram
0.00 0.00 0 0.060 0.02 0.02 0 0.060 Ha Gram
0.30 0.36 6 0.060 0.24 0.24 4 0.060 Ha Tur
1.00 3.00 30 0.100 0.62 0.62 6 0.100 Ha Maize
Bank
Loan
Fin.
Outlay
Phy.
Units
SoF
Bank
Loan
Fin
Outlay
Phy.
Units
SoF Unit
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% 333.88 2004-2005
502.69% 168.09 2003-2004
51.00% 27.89 2002-2003
Growth Amount Year
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 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. 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 that the 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
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.
18
(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 of
short 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: Irrigation
Department, 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.
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
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)
17.00 22.68 55.650 75.24 Total
- - - - - - - - - d)Pumpset
17.00 22.68 140 0.162 12.150 14.64 120 0.122 No. c)LLPs
- - - - 9.000 9.00 2 4.500 No. b)DTWs
- - - - 34.500 51.60 300 0.172 No. a)STWs
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Unit
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.
20
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)
1.45 1.93 10 0.193 3.81 5.08 40 0.127 Unit
Farm Ponds
20mX20mX3m
0.00 0.00 Nil
0.342
/2 ha
5.85 7.80 60 0.130 ha
OFD with LLP (1-2%
slope) (0.342/2 ha)
0.00 0.00 Nil 0.352 7.84 10.45 50 0.209 ha
Bench Terracing (10-20%
slope)
0.00 0.00 Nil 0.285 6.38 8.50 50 0.170 ha
Bench Terracing (6-10%
slope
0.00 0.00 Nil 0.252 53.40 71.20 400 0.178 ha
Land Dev. for Paddy
Cultivation
Bank
Loan
Fin.
Outla
y
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
21
1.45 1.93 10 174.47 232.63 1200 Total
0.00 0.00 Nil 0.288 97.20 129.60 600 0.216 ha
Reclamation of water
logged area
Bank
Loan
Fin.
Outla
y
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
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
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 X
th
plan period and
as such are being under implementation since April, 2002. Under National Watershed
Development Programme for Rainfed Areas (NWDPRA), 8 watershed development projects
have 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 NGO Patarkandi Andheribil 8
Navajyoti Club R.K.Nagar Dalugang Balicherra 7
United MP Soc. Patarkandi Dohalia-Borcherra 6
ROWAN Dunavcherra Kamunaicherra 5
Karimganj Green Lowaipoa Makunda 4
Sworvayat Badarpur Boruncherra 3
RGOI S.Karimganj Anduachera 2
Nabarun Sanha N.Karimganj Baghacherra 1
Project Implementing
Agency
Name of the Block Name of the watershed Sr.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.
23
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 fall
in 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 recycled
and 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
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
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)
19.70 26.25 21 401.68 535.58 322 Total
19.70 26.25 21 1.25 302.32 403.10 290 1.39 No.
Power
Tiller
- - - - 99.36 132.48 32 4.14 No. Tractor
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
Block-wise allocation of the above projection is given in Annexure-I.
25
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 be
done.
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 the
farmers 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
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 gap in 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
(Rs. lakh)
45.95 61.30 110 75.85 101.13 152 Total
10.10 13.45 5 2.69 10.09 13.45 5 2.69 ha
Sericulture
Muga
0.00 0.00 - 0.17 0.64 0.85 5 0.17 ha Mushroom
0.00 0.00 - 0.41 1.54 2.05 5 0.41 ha Tube Rose
1.58 2.10 7 0.30 1.35 1.80 6 0.30 ha
Aromatic
Plant
0.00 0.00 - 0.40 6.00 8.00 20 0.40 ha Guava
9.00 12.00 40 0.30 2.25 3.00 10 0.30 ha Citrus
19.35 25.80 43 0.60 2.25 3.00 5 0.60 ha Pineapple
0.00 0.00 - 0.47 7.05 9.40 20 0.47 ha Rubber
0.00 0.00 - 0.53 4.05 5.40 10 0.54 ha Coconut
6.00 7.95 15 0.53 0.40 0.53 1 0.53 ha Betelvine
0.00 0.00 - 0.65 24.38 32.50 50 0.65 ha Arecanut
0.00 0.00 - 1.41 15.86 21.15 15 1.41 ha Tea
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Updated PLP Base PLP Activity
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
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
29
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.
30
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)
37.30 49.64 144 13.46 17.95 Total
0.48 0.64 4 0.160 4.46 5.95 35 0.17 ha Nurseries
18.41 24.50 70 0.350 - - - - ha Jatropha
18.41 24.50 70 0.350 9.00 12.00 60 0.20 ha Bamboo
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Unit
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.
31
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.
32
(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.
33
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. 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)
32.55 43.40 156.04 208.05 Total
- - - (1+1) 67.03 89.38 325 0.275 (1+1) Baffaloes
- - - (1+1) 40.84 54.45 450 0.121 (1+1) Ind. Cow
32.55 43.40 140 0.310 (1+1) 48.17 64.22 175 0.367 (1+1) CB Cow
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
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 Husbandry Department 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.
34
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 support Services
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)
56.60 75.45 176.00 58.84 78.45 407 Total
53.55 71.40 105
0.68
0
30.38 40.50 45 0.900 500 Birds
Broiler
Poultry
3.05 4.05 71
0.05
7
14.96 19.95 350 0.057 28+4 Birds
Layer
Duckery
- - - - 13.50 18.00 12 1.500 500 Birds
Layer
Poultry
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
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.
35
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.
36
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 slopes of R.K. Nagar sub-division are particularly suitable for goat
rearing. The goats in the district are used mostly for meat purpose only. Demand for goat
milk is negligible in the district due to cultural inhibition. Present goat population in the
district is 113456. It is understood that cross between Black Bengal variety and improved
goats can be profitably reared in the district.
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 and limited local demand. The sector has to depend on neighbouring states of
Mizoram, Manipur for market. There is no organised market for piggery products within
the district.
2.9.2 Availability and gap in Infrastructure and support Services
The infrastructure and other non-credit inputs required for supporting Animal Husbandry
activities as a whole is discussed in detail in Dairy Development sector. It can be seen that
there is a need for strengthening and revitalising of existing infrastructure. Besides, there
is no piggery breeding farm in the district.
Keeping in mind the present stage of development and infrastructure available to support
the Animal Husbandry activities, the potential indicated in the base PLP for the year
2006-07 has been revised as given below:
(Rs. lakh)
14.00 18.66 66.13 88.16 Total
8.17 10.89 30 0.363 3+1 7.88 10.50 75 0.140 3+1 Piggery
5.83 7.77 70 0.111 5+1 58.25 77.66 809 0.096 5+1 Goatery
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
37
Although ground level credit flow data is not available for the district, it revealed from the
discussion with LDM that the credit flow under Sheep / Goat / Piggery sector was very low
during last few years. In the absence of required data on credit flow no trend analysis could
be established.
Department
In order to overcome the resource gap line departments of State Govt. may ensure
regular extension services and other inputs for the development of the sector.
Awareness among the beneficiaries may be created.
Banks
Bankers may take proactive role in financing under the sector to reduce the gap.
38
2.10. Fisheries
2.10.1. Introduction
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.
There are about 40,000 fishermen in the district who depend on this activity for their
livelihood.
Though deficient in fish production, fisheries play an important role in the state economy
in addition to providing livelihood to thousands of people directly or indirectly. The
district achieved a fish production level of about 9708.37 MT during the year 2004-05. This
include fishes of all varieties and from all types of water resources. However, there is
enough scope to take it to the level of 3000 kg/ha/year or more as against present
production level of 2000 kg/ha/year. Target for 2005-06 is 9900 MT. 7 Eco-hatcheries are
functioning in this district. 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. The District Fisheries Development
Department and Fish Farmer Development Agency (FFDA) are working for the
development of the sector. FFDA sponsors schemes to banks for credit and also provides
subsidy to the fish farmers. During the year 2004-05 total Fry production was 624.285
million. During the year 2006-07, target is fixed for 606 million.
Extension services are not regular in the district though technical services are being
provided to fish farmers. Due to shortage of technical staffs field works are badly
hampered. Fish feed ingredients like rice bran and oil cake are available in the district.
Other inputs like lime and fertilisers are also available.
District Fisheries Development Department is presently engaged in implementation of
ARIASP a World Bank assisted project under which projects like pond development
(36.34 ha), community tank development (44.39 ha), Fish-cum-Horticulture (5.50 ha),
Paddy-cum-Fish culture (1.70 ha), Pig cum Fish culture (2.35 ha) etc. are being implemented
as demonstration scheme. A total of 312 nos. of tanks / ponds are developed covering water
spread area of 90.28 ha. These projects are totally subsidised and no bank credit is involved.
Recurring floods cause great harm to the sector in the district. Leasing of Govt.
ponds/tanks is to be tried for fishery development under bank finance.
39
It is reported that there is no budgetary provision for fishery development and as a result
the Fishery Department is not taking up any new project other than World Bank assisted
project as discussed above. Beneficiaries under World Bank assisted scheme are imparted
with the knowledge of latest scientific technology of fish production. All SHG secretary and
presidents are also provided with the training for 5 days for scientific fish culture. Besides,
one day awareness programme on fish culture is also made in every development block in
every year.
Keeping in view the infrastructure available and other factors as discussed in the earlier
paragraphs, the base PLP projection for the year 2006-2007 has been revised as under :
(Rs. lakh)
57.70 76.85 - - 212.93 212.95 Total
15.00 20.00 10 2.000 No. - - - - -
Beel Fishery
2.60 3.41 10 0.341 0.4 ha - - - - -
Paddy cum Fish
culture
2.60 3.44 20 0.172 0.1 ha - - - - -
Fish Seed rearing
18.00 24.00 20 1.200 0.4 ha 4.88 4.90 5 0.98 1 ha
Duck-cum-Fish
culture (in existing
ponds)
9.00 12.00 10 1.200 0.4 ha 156.75 156.75 95 1.65 0.1 ha
Fish culture in new
ponds (1.5 m
excavation)
0.00 0.00 0 0.190 0.1 ha 21.37 21.30 15 1.42 0.1 ha
Fish culture in area
requiring 1 m.
excavation
10.50 14.00 20 0.700 0.4 ha 29.93 30.00 30 1.00 0.1 ha
Fish-culture in
existing ponds with
desilting/
reclamation of
derelict ponds
Bank
Loan
Fin.
Outlay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
Due to non-stabilisation of SAMIS in the district no past trend in credit flow is available
and hence trend analysis could not be established. However, in view of demonstration
effect of the World Bank assisted projects in the district there will be demand for the
development of fishery in the district and it is expected that there would be increase credit
flow under the sector during the plan period.
40
Department
Societies may be formed to bring maximum no. of working fishermen and fish
farmers into cooperative fold.
Fish feed Mill may be set up to overcome the scarcity of balanced fish food.
Ensuring supply of uniform standard size quality seed in right proportion and in
right time.
Technological upgradation may be ensured.
Extension network available with FFDA may be strengthened by deployment of
more staff and adequate funds.
Banks
The bankers should change the mindset and finance projects under the sector.
41
2.11. Storage Godown and Market Yards
Storage is required for keeping farmers' produce at the time of harvest and sell at a later
date for better price realisation.
For storage there are 3 big Godown in existing in the district.
33 Gaon Panchayat level Cooperative Societies functioning in the district are multipurpose
Co-op. Societies. These Societies besides offering agricultural credit to farmers, act as
Centre for distribution of essential commodities in rural areas. They also taking up
procurement of agricultural produces, besides, there are about 19 big market located in the
district. One cold storage with 6200 MT capacity as envisaged in the PLP for 2002-2003 has
since been set up in the district and commissioned.
However, one of the vital infrastructure for development in the sector is rural connectivity
which is in very bad shape. The rural roads are mostly kutcha roads and not all weather
ones.
Keeping in view the infrastructure available the base PLP projection has been revised for
the year 2006-07. Details are given below:
(Rs. lakh)
35.00 70.00 45.00 60.00 Total
35.00 70.00 7 10.00
500
MT
45.00 60.00 6 10.00 100MT
Storage
Godown
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
Block-wise allocation of the above projections is given in the Annexure-I.
The only cold storage set up in the district has is not running with 100 % capacity
utilisation.
No credit was given by the bank in the district for this activity. Hence no trend analysis
could be done.
The concerned state Govt. Deptts. may take immediate steps to repair the roads/bridges for
development of the sector.
42
2.12. Renewable Sources of Energy and Waste Utilisation
Bio-gas, a renewable energy resource, is an important factor in integrated rural
development as it meets the domestic fuel requirements, besides, utilizing the slurry as
NPK in the farms. Domestic fuel dependence on rural resources like wood and forest
products has increased leading to the destruction of forest cover. Therefore Government of
India attaches more importance for Bio-gas programme especially in the rural areas as an
alternative source of energy and state governments have been directed to implement the
scheme in right earnest to achieve the desired results.
2.12.2. Availability and gap in Infrastructure and support services
DRDA is the implementing agency. Apart from technical know-how, DRDA provides
subsidy to the beneficiaries and also helps in installation and operation of units. For
installation of bio-gas plants, the materials and skill required are available in the district.
The progress of installation of bio-gas plants in the district is as under :
NA NA 1996-97
23 46 1995-96
23 46 1994-95
30 46 1993-94
32 39 1992-93
40 40 1991-92
Achievement
(No. of Units)
Target
(No. of Units)
Year
It is understood from DRDA that the biogas plant could not be installed as they have not got
any funds under the sector since 1996-97. More over, the response from the farmers over
the years is lukewarm. There has been no credit flow to this sector for last many years.
There is no perceptible change in the availability in the infrastructure hence the no
potential is envisaged for the year 2006-07 and hence no projection made :
(Rs. Lakh)
0.00 0.00 0.00 10.13 13.50 Total
- - - - No. 10.13 13.50 100 0.14 No. Bio- Gas
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Activity
43
As per discussion with the Lead Bank and other bankers, it is gathered that no credit was
given under the sector during the previous years. Hence no credit flow is envisaged during
the year 2005-2006.
Department
The scheme may be popularised through awareness programmes.
Technical services may be provided by DRDA.
Banks
All banks operating in the district may take proactive role to finance under the
sector.
NGOs/VAs may be involved for the implementation of the scheme.
44
2.13. Other Allied Activity (Bullocks and Bullock Cart)
Karimganj district is predominantly agrarian in nature and farm mechanisation has not
gained momentum due to fragmentation of land holdings and other associated reasons.
Farming community in the district is still dependent on animal draught power for
cultivation as well as transport purposes.
As per the 1997 census, the number of plough bullocks in the district are at 1,03,253.
However the data on the actual number of bullock carts in the district is not available.
The infrastructure available, required and gap has already been discussed under Dairy
Development chapter para 2.7.3.
There is a slow but gradual shift from traditional to mechanised cultivation. Discussion
with DVO & LDM reveals that, population of bullock is adequate in the district and
therefore, there has not been any demand for credit during last few years. As there is no
perceptible improvement in the infrastructure, no potential is envisaged during the year
2006-07.
(Rs. lakh)
0.00 0.00 36.22 48.30 Total
- - - -
Pair 36.22 48.30 345 0.140 Pair Bullock
Bank
Loan
Fin.
Out Lay
Phy.
Units
Unit
Cost
Unit
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Activity
Past trend in credit flow is not available for the district due to non-stabilisation of SAMIS
and as such no trend analysis could be done. From the discussion with the LDM and other
banks it could be gathered that there has not been any credit flow in this sector.
Additional efforts on the part of bankers are required to boost this sector.
45
(III) Credit for Non-Farm Sector Activities
2.14.1. Working Capital Requirement
Working Capital plays an important role in the smooth functioning of any enterprise or
economic activity. This is particularly true for industries and services sector where huge
amount of money is blocked in different stages of production / services. As already seen in
the previous part of this chapter that the loans for industries and services sector have been
increasing at rapid pace over the years, the demand for working capital is also increasing
at an accelerated pace. On the other hand, the entrepreneurs in the district in general are of
the opinion that there is a wide gap between demand and supply of credit for the sector.
The demand for working capital in the district is guided by the following factors:
Majority of the industries in the district are catering to local markets only and so
the time gap both for supply of products and realisation of proceeds is very less.
Also the terms of trade are mostly cash.
The service sector is generally operating on 'cash terms' in their day to day work.
On the other hand, raw material for SSI units is being procured from outside in case
of chemical, engineering and textile based units. The terms of trade, again mostly
cash, result in increase in demand for working capital.
The household / cottage industry, industry based on forest based raw materials like
bamboo and cane products are operating on cash terms with very less of finished
goods inventory, but with high level of inventory of raw material as the raw
material is seasonal in supply.
The working capital requirements for handloom sector is maximum as the raw
material is to be obtained at a high rate and in bulk quantities from far off places
and marketing is done through "ARTFED". The large time gap between supply of
finished goods and realisation of returns necessitates very large amount of working
capital.
The working capital assessed in the base PLP for the year 2006-07 is marginally revised for
the updated year as under:
(Rs. lakh)
340.00 335.00 Total
150.00 145.00 3. Handloom
70.00 70.00 2. Services
120.00 120.00 1. SSI
Updated Base PLP Particulars
46
2.15. Investment Credit
The economy of the district is basically agrarian and industrial development has not taken
place. The district is regarded as industrially backward. There is no major and medium
industry in the district.
2.15.2. Occupational Pattern
Agriculture and allied activities are the predominant activities among the people of the
district. More than 75% of the population of the district are directly or indirectly dependent
on agriculture. The classification of work force in the district as per 1991 census is given
below :
The district has a population of 1003678 out of which male worker is 47.45 % as against
female worker of 5.21 %. However, percentage of farm and non farm workers for both male
& female is more or less same averaging 68.87 % and 31.22 % respectively.
2.15.3. Present Status of Industries
0.199 3708 739.36 625 Total 9
1.319 47 Badarpur 62.00 4 Ancillary 8
0.175 578
-do-
101.06 163
Other services
Misc.
7
0.080 417
All over the
district
33.55 61 Textile-based 6
0.488 446
Kxj Town,
Badarpur Town
217.80 99 Engg-Allied 5
0.219 406
Kxj Town,
Badarpur Town
89.10 81 Chemical-based 4
0.011 33 Badarpur 0.35 7 Animal-based 3
0.048 1257
All over the
district
60.00 120 Forest-based 2
0.335 524 Badarpur 175.50 90 Agro-based 1
Investme
nt per
employee
Employment Concentration Investment
No. of
Units
Type of
Industry
Sl.
No.
The credit allocation for manufacturing and services sector are made based on the priority
for manufacturing sector over the services sector. This priority is assigned due to the fact
that well developed manufacturing sector forms vital forward linkage for agriculture sector
and also services sector can sustain in the long run only on a vibrant manufacturing and
agriculture sector.
The district provides scope for establishment of manufacturing units for many activities.
Some such activities identified by National Productivity Council, District Industries
Centre and the connected agencies are presented below :
a) Agro based : Spices grinding, fruit preservation and canning, scented supari,
activated, charcoal, chira mill, jam, jelly and squash.
47
b) Forest based : Cane furniture, wooden electrical accessories, photo frame,
wooden doors and windows, Bus and truck body, building material, bamboo mat
making, stone crushing, Brooms from verma and bamboo, sports goods, handloom
accessories.
c) Animal husbandry based : Village tannery, cattle feed and poultry feed, leather
bags etc.
d) Textile based : Surgical gauge and bandage, absorbent cotton, readymade
garments, laishengphee, silk screen printing, silk clothes, powerloom units,
non-polyster yarn, decorative textiles.
e) Chemical based: Washing Soap, ferric alum, phenyl, agarbatti, distilled water,
refill making, tyre rethreading, yarn dying, hawai chappal, different plastic / PVC
product, soft drinks, rexin bags.
f) Engineering based: Engineering workshop, steel fabrication, steel furniture,
agriculture and tea garden implements, T.V. Antennas, Voltage Stabiliser, battery
eliminator, misc. electrical works.
g) Building material : Cement ventilator, Hume pipe, cement well ring, hollow
bricks.
h) Miscellaneous: File board and File cover, book binding, photo studio, paper
bag units, umbrella assembling, confectionery, ice candy and ice bar.
i) Ancillary Industries : There is no large industries in the district. The Cachar
Sugar Mills is not functioning due to various reasons hampering the scope for
establishment of ancillary units. On the other hand Hindustan Paper Corporation
has a big paper mill viz: Cachar Paper Mill located at Panchgram in neighboring
Hailakandi district. The unit, being a large industry, uses variety of products,
which provides scope for establishment of ancillary units in all three districts of
Barak Valley.
Following raw materials which are being used in the Paper mill can be manufactured by
establishment of ancillary units within the region.
Paper grade lime, Alum, Wax emulsion, Gum taps and Sodium Silicate, etc. .Apart from the
above, following waste products of the paper mill can gainfully be used to manufacture
items shown against their name :
Boiler fly ash Bricks 3
Bamboo dust Craft Paper 2
Lime sludge Cement 1
HPC Waste Product Material Sl. No.
The above projections were long term projections for the district and made on the
assumption that constraints like manpower, infrastructure etc. shall be suitably addressed
within time frame. However, certain infrastructure / non-credit input factors like
48
availability of power / maintenance of installations, maintenance of roads, Government
policies for encouragement of industry are factors which shall have to be addressed
immediately.
Analysis of infrastructure, non-credit inputs, backward and forward linkages and the
factors that will affect the growth of non-farm sector in the district are discussed
hereunder:
Electricity : More than 90% of the villages are electrified in the district. Low voltage and
frequent power breakdown resulted in interruption of work in Industries/factories as well
as electricity based services like printing / photostat etc.
Road Net Work : The major road link to the district is National Highway 44 which starts
from Shillong in Meghalaya and after passing through Karimganj. It covers a stretch of
more than 83 kms in this district. Besides, a new National Highway 151 has been
sanctioned for connecting Karimganj Town with Sutarkandi on the Bangladesh border.
Rail Network - The meter gauge railway line connecting Dharma Nagar in Tripura to
Guwahati passes through the district. The length of railway line in the district is 113 km.
Due to transhipment problems and resulting loss and damage to goods, the traders
generally prefer road transport to rail transport in the district.
Water Transport - The district is well connected to Bangladesh and Calcutta through
rivers Kushiara and Barak flowing through the district. However, cargo movement by this
mode of transport has been declining due to over silting of river beds and consequential
difficulties in movement of large ships through river during off season.
Others - An International Trade Centre is coming up at Sutarkandi near Bangladesh
boarder at a cost of Rs.8.16 crore to promote international trade. The project is being
funded by Central Government under critical Infrastructure Fund and being implemented
by Assam Infrastructure Development Corporation under Directorate of Industries and
Commerce, Government of Assam.
Availability of skilled / unskilled Manpower - Though the census figures show that
there are large number of unemployed people in the district, the availability of technically
qualified personnel for managing large scale units in the district is doubtful.
49
2.16. Supporting Organisations and Special area
2.16.1. Cottage and Village Industries: There is a good scope for establishment of cottage
and village industries on project / area approach basis in the district. Some of the
activities with substantial potential are :
a) Bee keeping and Honey collection;
b) Fruit / food processing
c) Leather foot wear;
d) Jute processing and blending.
2. As already discussed, handloom sector also has tremendous potential in the district.
Despite existence of such large potential, achievement so far has been negligible.
2.16.2. Promotion of handicrafts and Artisan based units
The major artisan based units in the district are Cane & Bamboo, Carpentry, Blacksmith,
Pottery, Shital pati, Idol making, Cobblery, Boat making etc. having around 753 units in the
district employing around 1872 people. Despite large potential, trade in items like cane and
bamboo products and sitalpati do not seem to have reached a stage where returns can be
assured to entrepreneurs. The role of State level Apex Organisation namely ARTFED also
seems to be limited in the district.
2.16.3. Infrastructure for Industrialisation :
Industrial Estate : The only industrial estate of the district is located at Badarpur. Out
of 29 sheds, 18 shed have been allotted & occupied at present. 10 shed are functioning, 3
sheds have been closed and 5 sheds are yet to start functioning.
As already mentioned, the units in the estates are highly affected by recurrent power
failure, some times even leading to their closure. Due to low level of industrial activity, the
maintenance of the estate itself is very poor. There is an urgent need for support from the
Government for proper infrastructure and maintenance of the industrial estate for
industrialisation of the district.
Keeping in view the above facts, the achievement under ACP, the projection made in the
base PLP for the year 2006-07, inclusive of new looms, has been revised as given below :
(Rs. lakh)
373.80 507.15 438.75 585.00 Total
373.80 507.15 438.75 585.00 NFS
Bank Loan Fin . Out Lay Bank Loan Fin . Out Lay
Activity
Block-wise / activity wise allocation is given in Annexure-I.
50
The flow of credit to SSI and Rural Artisans under Non-Farm vis-a-vis the targets under
ACP for last three years are given below:
( Rs. lakh)
251.57 503.96 2004-2005
254.53 415.03 2003-2004
83.07 268.16 2002-2003
Credit flow ACP Target Year
From the above it may be observed that the disbursement has shown declining trend
during the year 2004-05. However, the ACP target for the year 2005-06 has been fixed at Rs.
591.65. It is expected there will be further increase in the disbursement of credit under the
sector in coming years.
Department
Based on the local demand, availability of raw material and skill, training
programme may be organised.
Survey may be conducted by the Govt. agencies to find out the possibilities of rapid
industrialization of the district.
For development of entrepreneurship, Rural Entrepreneurship Development
programme may be organised frequently.
Regular and uninterrupted supply of electricity may be ensured.
For speedy industrialization, land, raw materials, technical know-how, marketing
facilities etc. may also be made available to the entrepreneurs.
Banks
Bank may take proactive role to motivate the farmers to give a boost to this sector.
Banks may organise workshops inviting prospective farmers and line departments
so as to educate and motivate the farmers to ensure industrialisation.
51
2.17. Handlooms
The district has enormous potential for handloom sector in view of large number of weaver
population. The category-wise number of people engaged in this sector is as under :
32,499 3,805 19,313 9,381 Total
14,700 2,156 10,346 2,198 Part Time
17,799 1,649 8,967 7,183 Full Time
Total Children Women Men Type of weaver
Status of looms engaged is as follows :
28,218 244 27,974 Total
21,786 55 21,731 Commercial
6,432 189 6,243 Domestic
Total Idle Working Type of looms
From the above information it can be inferred that :
Weaving is major activity of woman in weaver household.
Most of the looms are used for commercial activity indicating predominance of
weaving as a source of livelihood.
There is no caste / class predominance as far as this activity is concerned. All caste
are engaged in this activity.
Most of the weavers earn less than Rs.300 per month from weaving activities.
The above data is as per Handloom Census 1987-88. No latest information is available in
the district. There may be an increase in average monthly income of weavers after that due
to price escalation. However, net earnings still remain lower and classified under low
income groups.
2.17.2. Problems faced by the Sector
Though total production of cloth in the district is high, productivity at 1.46 meter per loom is
very less in absolute terms. Such a low productivity is due to the fact that the number of days
worked by weaver households is about 18 days in a month. It may also be observed from the
above data that as a result of working for just 18 days a month, maximum number of weavers
are in the lower income bracket. As such, average monthly income of weaver households
works out to Rs.915/-. The low productivity and low earnings can be attributed to following
factors :
Non-availability of raw material in time resulting in purchase at high cost.
Non-availability of institutional credit leading to availing of credit from informal
sources (money lenders, etc.) at very high rates.
52
2.17.3. New looms
The district has 8590 households with single loom. There is an urgent need for providing
additional looms to this population. The physical and financial programme fixed in the
base PLP has been revised for the year 2006-07 as under:
(Rs. lakh)
26.00 34.65 23.48 31.30 Total
26.00 34.65 770 0.045 23.48 31.30 626 0.050 No.
New
Loom
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Outlay
Phy.
Units
Unit
Cost
Unit
Activity
As per the discussions with the LDM and other bankers in the district, it is gathered that no
credit was given under the sector for last few years.
Measures as mentioned in NFS chapter (para 2.14.8) may be ensured for all round
development of the sector.
53
(IV) Other Priority Sector
It is a fact that for agriculture and industries sector to function efficiently, the services
sector needs to be well developed. Apart from this, many other areas of investment like
transport, rural housing, trade and business etc. are equally important for overall
prosperity of the rural and semi-urban area. Keeping in view the above facts, these areas
have been identified as "Other Priority Sectors" for the purpose of credit planning. The
major areas under other priority sector are as under:
1. Transport Operators (Small and Big)
2. Rural Housing
3. Trade and Business
4. Miscellaneous
Credit potential for each sector is assessed on the basis of past trends, existing level of
development and future requirements of these sectors.
Transport Operators
As already discussed in the chapter on Non-Farm Sector, road transport continues to be
major mode of carrying goods in the district. Though flow of industrial goods as such is
limited, the agriculture produce both for consumption within district as well as for export
to Bangladesh come to the district by road only. There are about 2500 transport vehicles in
the district, majority of which are public carriers. Of late the small vehicles like Tata Sumo
etc. have become a very popular mode of passenger travel within the district as well as
inter district commutation.
Rural Housing
Housing for rural poor is a priority area in view of the fact that together with food and
clothing, house is a basic necessity for survival of human beings. Though rural poor are
being provided housing facilities under Indira Awas Yojana, the demand of a particular
section of the society is being satisfied by the programme. Keeping in view the magnitude
of housing problem in rural and semi-urban areas of the district it can be easily understood
that there exists a huge demand for housing loan in rural and semi-urban areas. NABARD
has recently allowed refinance on loan disbursed for building new houses or renovation of
old houses in rural area. The eligibility for construction of a new house is upto Rs.7.00 lakh
and for renovation of old house upto Rs.2.00 lakh.
54
In view of high demand and infrastructure available in the district, potential estimated in
Base PLP for the year 2006-07 has been revised. The details have been given in the
following table:
(Rs. lakh)
3164.00 4125.00 808.13 637.50 Total
595.00 700.00 700 1.00 150.00
4.Professional
& self
employed
787.50 1050.00 2100 0.50 180.00 3. RT / SB
810.00 1080.00 270 4.00 168.75 225.00 50 4.500 Unit
2. Rural
Housing
971.50 1295.00 185 7.00 309.38 412.50 55 7.500 No. 1.SRWTO
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Bank
Loan
Fin .
Out Lay
Phy.
Units
Unit
Cost
Unit
Activity
The credit flow during last three years is very encouraging under the sector as may be seen
from the following table:
( Rs. lakh)
58.82 2933.87 2004-2005
78.16 1223.44 2003-2004
29.53 686.70 2002-2003
Growth (%) Amount Year
From the above it is observed that flow of credit under the sector has been increasing over
the last five years. The growth rate was 52.04% during 2001-2002 over the previous year.
Growth rate has, however, been lower at 29.53% during 2002-2003 which again surged to
78.16% during 2003-2004 and 58.82 % during 2004-2005 over 2002-2003 & 2003-2004
respectively.
Suggestions made under NFS chapter (para 2.14.8) for the development of the sector is
equally applicable under this sector also.
55
CHAPTER III
Infrastructure support
3.1. Introduction :
Infrastructure refers to the facilities, activities and services which support operation and
development of other sectors of the economy. They are useful in the daily life of the society.
Economic infrastructures include (a) energy : viz., coal, electricity, petroleum etc. (b)
Transport services viz., railways, roads, shipping, civil aviation etc., and (c)
Communications while social infrastructure consists of education, health and civic
amenities like water supply, sanitation , housing etc. While the economic infrastructure
directly support the process of production and distribution, the latter supports the
economic system indirectly. Honble President of India, Dr. A. P. J. Abdul Kalam, in his
address to Parliament outlined an overreaching vision to build India and called it Bharat
Nirman- that has been conceived as a business plan, to be implemented over a period of 4
years, for building infrastructure mainly in rural India. It has 6 components - Irrigation,
Roads, Water supply, Housing, Rural Electrification and Telecom density. In this chapter,
apart from the various component of infrastructure directly influencing the development of
district economy, essential basic services like health, education etc. are briefly discussed
keeping in view of the scope for development with RIDF assistance.
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.
To address this serious problem of inadequacy of infrastructure Rural Infrastructure
Development Fund was created in NABARD. The scope of activities to be supported from
RIDF has been gradually enlarged to include irrigation projects, soil conservation works
and water shed management projects, rural roads, rural bridge projects, development of
integrated market yards / cold chains, modernisation of existing inland water ways,
projects on harvesting of rain water, rural markets, construction of Fish-jetties,
development of ponds/Tanks, system improvement projects in power sector, mini hydel
projects, as also social sector projects like buildings for primary schools and primary
health centres, drinking water supply, village knowledge centre, etc. Further, apart from
the State Governments, NGOs/SHGs/PRIs have also been brought under the ambit of the
fund so as to implement eligible projects.
56
3.2. Infrastructure Indicators :
A +
A +
A +
A +
C
C
-
-
63.25
71.28
54.61
144
20
1.31
1 : 36
1 : 14
66.24
74.69
57.28
150
11.71
0.80
NA
NA
Education
a) Literacy rate
b) Literacy rate - Male
c) Literacy rate - Female
d) No. of schools per 1 lakh population
(Elementary education up to Standard 8th)
e) No. of secondary and sr. Secondary schools per
1 lakh population
f) No. of Degree & professional colleges per 1 lakh
population
g) Teacher - pupil ratio
upto class -V
Class -V to class VIII
5
-
A
C
1.84
6651
19.57
NA
6631
11.90
Communication
a) No. of telephone lines per 100 population
b) Population served per post office
c) Average area served per post office (Sq. kms.)
4
D
A +
-
A
37.19
2.61
97.38
4.89
3.28
3.28
Nil
4.19
Irrigation
a) Irrigated area to net cropped area (%)
b) % Area irrigated though ground water
c) % Area irrigated though surface water
d) No. of tube wells per 100 ha of cropped area
3
B
D
D
448
8549
44.94
%
354.89
1448.87
06.11 %
Transportation
a) Road density per 1000 sq. km. of area
b) No of transport vehicles per 1000 sq. kms.
(Registered vehicles of all types)
c) Villages connected by pucca roads
2
B
77.13

NA
59.91
55.51
Electricity
a) % of villages electrified (As per pre 2003-04
definition)
B) Percentage of rural consumers to total
consumers
1
Category State District Infrastructure component
Sr.
No.
57
A +
A +
-
-
C
-
-
1651
1794
1046
700
501
500
552
2251
2077
Nil
Nil
333
Nil
Nil
Productivity of major agriculture crops (Kg /
Ha)
i. Winter paddy
ii. Summer paddy
iii. Wheat
iv. Maize
v. Rapeseed/mustard
vi. Linseed
vii. Sesamum
11
D 24 1
Agricultural marketing
No. of regulated markets per 100 sq. km
10
A + 36.09 61.81
Poverty
Percentage of rural people below poverty line
9
D 24 1
Agriculture markets
No. of agriculture markets per 100 sq. km
8
D 99.17
%
15.41
Water supply
Percentage of villages having drinking water
supply (Fully or partially)
7
-
-
-
-
-
A +
-
A
-
26.6
9.2
NA
70
NA
22.49
1.85
48.58
1.74
NA
NA
NA
NA
NA
25.10
NA
46.82
NA
Health
a) Birth rate (Per 1000 persons)
b) Death rate (Per 1000 persons)
c) Mother Mortality Rate (MMR) per 1 lakh live
births
d) Infant Mortality Rate (IMR) per 1000 live births
e) Life expectancy at birth
f) Sub Centres /Primary Health Centres /
Community Health Centres per 1 lakh population
g) No of Dispensaries/Hospitals per 1 lakh
population
h) No of beds in hospitals per 1 lakh population
i) Doctors (Modern i.e. Allopathic System) per 1
lakh population
6
Category State District Infrastructure component
Sr.
No.
58
3.3. Sector-wise infrastructure requirement and suggested action points:
The district is confronted with the problem of inadequate / poor infrastructure in terms of
community irrigation facilities, power supply, roads and bridges, storage godown
including cold storage and organised market, primary health services, Veterinary services,
drinking water supply, basic education facilities etc. Some of the important infrastructure
gap identified under different sectors / activities and suggested action points are as under
AI programme has to be implemented in a bigger
pace to ensure availability of good quality animals
locally
A pasteurisation plant of at least 20000 ltr. capacity
seems to be an immediate need of the district.
The existing facilities in the hospitals, sub centres
need to be further strengthened
Animal Husbandry 4
An watershed based approach is needed for
conserving the valuable soil and water resources
and delineation of watersheds may be done.
Land Development 3
The utilisation of the existing Irrigation potential
is extremely poor due to lack of maintenance for
which adequate budgetary support is required.
Projects not completed for want of funds may be
completed with assistance from RIDF fund.
Inadequate and erratic power supply is the
stumbling block in the process of development.
Power supply position need to be improved as
many of the projects are not yielding any result due
to non availability of power.
Minor Irrigation 2
i) Creation of irrigation facilities both from surface
and ground water sources has to be given priority.
ii) The rural roads are mostly kutcha roads and
during rainy seasons these remain either
submerged or non-motorable. Rural road
bridges/culverts are also either broken or are in
dilapidated condition. This needs to be
continuously strengthened.
iii) Processing units with diversified products
based on seasonal local fruits / vegetables need to
be set up for Multiple crop
Iv) To encourage organic farming / Integrated
nutrient management, a commercial biofertiliser
unit and a few vermicompost units need to be
promoted.
Agriculture / Crop
Production/ Horticulture
1
Infrastructure support requirements identified Activity/Sector Sl. No
59
Recurring floods cause great harm to the sector in
the district. Leasing of Govt. ponds/tanks is to be
tried for fishery development under bank finance.
It was reported that adequate budgetary support
for fishery development was not provided and, as a
result, the Fishery Department is not taking up any
new project other than World Bank assisted
project. Beneficiaries under World Bank assisted
scheme are imparted with the knowledge of latest
scientific technology of fish production.
Fisheries 6
i) The district has vast potential for poultry and
duckery as almost 90 % population is non
vegetarian. However, 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 etc.
ii) More hygienic dressing units are required
Poultry 5
Infrastructure support requirements identified Activity/Sector Sl. No
3.4. RIDF Projects in Karimganj district
The details of projects sanctioned under RIDF in the district are indicated below -
Bridge :
(Rs. lakh)
1072.90 1269.65 Total
Not
started
185.75 232.19
Br.No.1/1 on Solgai T.E. Gopalpur Road
over river Longai
5%
Completed
184.00 230.00
Br.No.1/2 on Pondraghar Swapanargol
Road over river Longai
5%
Completed
188.49 235.61
Br.No.21/1 over river Longai on
Fakirabazar-Nilambazar Road
RIDF IX
5%
Completed
201.60 224.00
Bridge No.1/2 over river Kokra on
Karimganj Road divn
RIDF
VIII
Completed 313.06 347.85 Bridge No.3/1 over river Longai Road RIDF V
Present
Status
RIDF
Loan
Project
Cost
Name of Projects Tranche
60
3.5. Infrastructure for support under RIDF :
As emerged during the course of pre PLP discussions with the District Administration and
concerned departments, in Karimganj district assistance from RIDF is required for
development of infrastructure in the following areas :
i. Rural Roads and Bridges for better connectivity
ii. Minor Irrigation - Renovation of Defunct Project / Completion of on going projects
iii. Public Health Institutions
iv. Rural Education Institution/ School Building
v. Flood Protection and Drainage
vi. Watershed Development
Roads :
1600.0 59.23 Badarpur 7
2853.8 95.12 South Karimganj 6
2150.0 71.67 North Karimganj 5
1296.9 43.23 Lowairpoa 4
2525.0 83.83 Patharkandi 3
3196.5 106.55 Dullavchera 2
2127.5 70.92 R.K.Nagar 1
Estimated cost (Rs.
Lakh)
Length (Kms) Block Sl.No.

Bridges :
The State PWD has reported that about 75 bridges may be considered for replacement
within the next 3 years. Considering the average length of an SPT bridge as 25 m and
average cost as Rs. 3 lakh per m., the estimated cost of replacing 75 nos. SPT bridges would
be about Rs. 56 crore, or say about Rs. 20 crore each year for the next three years. Almost all
the SPT bridges are in very deplorable condition and they need replacement
simultaneously.
Minor Irrigation :
The district has 34872 ha.m of annual replenishable ground water resources. 70 STWs and
27 DTWs have been installed. Around 29366 ha.m of balance ground water resources for
irrigation can be exploited. However, due to non-availability of ground water in the upper
strata, STWs are not feasible in the district. DTWs are feasible but requires heavy
expenditure. State Govt. may install adequate DTWs in the district as the same is not
possible through credit.
61
Education :
The literacy rate in the district for both men & women is higher than that of state average.
However, no. of schools and degree colleges per one lakh population is much below the state
average. The state govt. may consider opening of new schools / degree colleges as much as
possible.
Flood Control and Drainage :
Karimganj district as a whole is flood prone. The various short term flood control measures
required to be taken up in the district are :
3.08 310
Anti-erosion measures to Kurikhala and Gandhak
area against erosion of river Longai on its R/B.
4
12.4 495
Protection of Karimganj town from erosion of
river Longai at Longaighat area
3
17.5 250
Protection of Karimganj town from erosion of
river Kushiara L/B at Sheralipur area
2
350 500
Anti-erosion schemes
Protection of Umarpur area near Badarpur town
from erosion of river Borak on its L/B
1
Anticipated
benefited
area(Ha.)
Physical
length (m)
Type of work
Sl.
No.
62
Chapter IV
Support for Government sponsored programmes
4.1. Capital Linked Subsidy Schemes
4.1.1. Capital Investment Subsidy Scheme for Cold Storages
A capital investment subsidy scheme for construction / expansion / modernisation of cold
storage and storage for horticulture produce was introduced by Govt. of India in order to
reduce the rising post harvest losses of horticulture produce. The scheme envisages not only
creation of additional capacity by construction of be new cold storages but also encourages,
expansion / modernisation / renovation or rehabilitation of old cold storage units. Subsidy
is available @ 33.33% of the project cost with a ceiling of Rs.60.00 lakh. There is one cold
storage with the installed capacity of 6200 MT in the district. Adequate cold storages
facilities will improve the marketing avenues for the produce and the farmers will be able to
realise higher income.
4.1.2. Capital Investment Subsidy Scheme for Rural Godowns
The Directorate of Marketing and Inspection, MoA, Government of India, in collaboration
with NABARD, has formulated a credit linked subsidy scheme for construction /
renovation / expansion of rural godowns. Creation of scientific storage capacity in rural
areas for meeting the requirements of farmers for storing farm produce, prevent distress
sale of produce by farmers immediately after harvest, promote pledge financing and
marketing credit, introduce a national system of warehouse receipts in respect of
agricultural commodities stored in such godowns, etc. are the main objective of the scheme.
The scheme provides credit-linked back-ended capital investment subsidy.
For the projects in North-East Region, subsidy admissible is @ 33.33% of the project
cost with a ceiling of Rs.50.00 lakh.
4.1.3. On Farm Water Management Scheme
To increase the crop production in Eastern India a centrally sponsored subsidy based
credit linked programme "On Farm Water Management" has been launched. The aim of the
scheme is to exploit ground water potentiality of the area to bring more area under assured
irrigation and thereby increasing production and productivity of the land. The scheme is
applicable to all the districts of Assam. A district-wise and block-wise banking plan has
already been prepared for the State by NABARD under the programme for implementation
by banks. The funding pattern under the scheme will be 20% margin money, 30% subsidy
and 50% bank loan. The subsidy, under the scheme, would be administered by NABARD. 91
applications have already been forwarded to various bank branches for sanction. On Farm
Water Management Programme should be implemented on priority basis.
63
4.1.4 Scheme for Development/ Strengthening of Agricultural Marketing
Infrastructure, Grading and Standardization -
Govt.of India has launched a credit linked back - ended subsidy scheme i. e. Scheme for
Development/Strengthening of Agriculture Marketing Infrastructure, Grading and
Standardization. The scheme is in operation w.e.f. 20 October 2004 during 2004-05 and will
continue upto 2006-07. The credit linked back ended subsidy shall be provided on the capital
cost of general or commodity specific agriculture marketing infrastructure and for
strengthening and modernisation of existing agricultural markets, wholesale or retail in
rural/municipal areas. The Scheme is reform linked and is applicable in those
States/Union Territories which amend the APMC Act, as may be required, to permit
setting up of agricultural markets in private and co-operative sectors and allow direct
marketing and contract farming.
The assistance under the scheme shall be available to individuals, group of farmers/
growers/ consumers, partnership/ proprietorship farms, NGOs, Self Help Groups (SHGs),
Companies, Corporations, Co-operatives Marketing Federations, Local Bodies,
Agricultural Produce Market Committees and Marketing Boards in the entire country.
Under the scheme, subsidy @ 25% of the capital cost of the project with an upper ceiling of
Rs. 50.00 lakh shall be available in all areas for all category of promoters. However, in
North Eastern States, Hilly and Tribal Areas and for entrepreneurs belonging to SC/ST and
their co-operatives, the same shall be available at 33.33% subject to ceiling at Rs. 60.00 lakh.
Further, in respect of infrastructure projects of State Agencies, there will be no upper
ceiling on subsidy. Directorate of Marketing and Inspection (DMI), Min. of Agriculture,
Govt. of India is the nodal agency to operate the scheme. NABARD will be administering
the subsidy and monitoring the progress of the schemes besides providing refinance
support to banks.
4.2. Government Sponsored Programmes
The Government of India has sponsored a number of poverty alleviation programmes to
improve the income levels of rural population for eradicating poverty and employment
generation. The following important programmes have been implemented in the district.
4.2.1. Swarnjayanti Gram Swarojgar Yojana (SGSY)
The IRDP was under implementation in the district since 1983 till 31 March 1999 with the
objective of assisting the families below poverty line and to raise their standard of living
was not successful in alleviating poverty. Government of India has since launched a new
poverty alleviation programme for rural population living below poverty line, viz.
Swarnjayanti Gram Swarozgar Yojana (SGSY) by subsuming the earlier programmes like
IRDP, TRYSEM, DWCRA, SITRA, MWS and GKY w.e.f. 01 April 1999. This is a holistic
programme covering all aspects of self employment such as organisation of the poor into
self help group, training, credit, technology, infrastructure and marketing. SGSY is being
64
funded by the Central and the State Government in ratio of 75:25. SGSY aims at
establishing a large number of micro enterprises in the rural areas through cluster
approach. SGSY focuses on group financing with efforts on to involve women members in
each SHG. SGSY is credit-cum-subsidy programme like IRDP, but credit is a critical
component in SGSY. Hence, it envisages greater involvement of banks right from planning,
preparation of projects, identification of activity clusters, capacity building of the SHGs
and loan recovery. SGSY endeavours to bring every assisted family above poverty line
within three years. Performance under the scheme during last five years is given below:
(Rs. Lakh)
174.08 174.08 145 NA NA 2004-2005
155.50 155.50 64 NA NA 2003-2004
166.27 95.21 59 71.06 299 2002-2003
56.84 19.49 11 37.35 151 2001-2002
7.60 2.45 2 5.15 NA 2000-2001
Financial Physical Financial Physical
Total
Financial
Group Individual
Year
During 2001-2002 an amount of Rs.56.84 lakh was disbursed under the programme. Out of
which Rs.19.49 lakh was disbursed to 11 SHGs and Rs.37.35 lakh was disbursed to 151
individual swarojgaris. However, during 2002-2003 as many as 59 groups have been
financed with a financial assistance of Rs. 95.21 lakh. During 2003-04 and 2004-05, banks
disbursed Rs. 155.50 lakh to 64 SHGs and Rs. 174.08 lakh to 145 SHGs respectively.
As the implementation of the programme started late in the district the groups formed
under the scheme were not matured enough to provide term loans and hence more
individuals were financed during last four years. As per the latest information gathered
from DRDA, so far 2282 SHGs have been formed in the district under SGSY. During the year
2004-05, 432 groups have already been provided with Revolving Fund Assistance of Rs. 21.60.
During 2004-2005, Rs.174.08 lakh was disbursed to 145 groups under SGSY in the district.
DRDA may gear up their machinery to sponsor applications of eligible groups for financing
under the scheme. They need to work in close coordination with banks and the line
departments. for proper implementation of the programme in the district.
4.2.2. Prime Ministers Rozgar Yojana (PMRY)
Prime Ministers Rozgar Yojana is another centrally sponsored programme for self
employment of unemployed educated. The programme envisages covering large number of
entrepreneurs for setting up of units under Industries, Services and Business Sector.
District Industries Centre & Commerce (DICC) is the nodal agency for implementation of
the programme. In addition to planning and identification, they are to arrange for training
programme to improve the skill of the entrepreneurs. The progress made during last five
years under the programme is given below :
65
(Rs. lakh)
29.04 40 493 788 2004-2005
0.24 2 348 528 2003-2004
11.22 16 344 476 2002-2003
65.05 92 113 172 2001-2002
45.08 28 111 110 2000-2001
Amt.
disbursed
No. of
application
disbursed
No. of
application
sanctioned
No. of
application
sponsored
Year
The target for the year 2005-2006 has been fixed at 514 nos. of applications. The progress in
disbursement under the scheme need to be improved.
4.2.3. KVIC/KVIB Margin Money Assistance Scheme
Against an annual physical target of 50 fixed for the district for 2004-2005, out of which 48
proposals were sanctioned with disbursement of Rs. 160.84 lakh. During 2005-2006, 80 nos.
of projects with credit flow of Rs. 80 lakh were fixed as target for the district to be
implemented under the scheme in equal proportion by KVIC/KVIB.
4.2.4 Problems and suggestions
Major problem observed in implementation of Govt. sponsored programmes is inadequate
development of entrepreneurial skills, lack of proper backward and forward linkages, lack
of marketing skills, under financing, delay in sanction/disbursement etc. The problem is
further aggravated on account of misutilisation / diversion of funds and high incidence of
default by the borrowers/low level of recovery . The end use of credit must also be
properly monitored. Wide gap between target and sanction and also sanction and
disbursement is a matter of concern. It is necessary to improve the recovery under Govt.
sponsored programmes to motivate the bankers for speedy disposal of cases. At the same
time, quality of cases sponsored and the entrepreneurial training need to be improved to
achieve higher success rate. Further, close monitoring is necessary to check
misutilisation/ diversion of funds. In case of SGSY, the groups promoted need proper
nurturing for cohesiveness and training to skillfully manage the funds and units set up .

66
Chapter V
Role of informal Credit Delivery System
5.1.1. Self Help Groups
Micro finance was hitherto less known activity in the district. Initially under the aegis of
United Bank of India (UBI), Patherkandi and Ram Krishna Nagar Branches about 55 Self
Help Groups (SHGs) were promoted in the district during 1999-2000. Subsequently a few
NGOs, viz, Udayan, Navarun, Chandmari Youth Club, Nabarun Sangha Community Centre
etc. have come up in the district and they have started promoting SHGs in different blocks.
As on 31 March 2005, they have promoted around 350 groups. Out of these groups only 12
SHGs so far been credit linked with UBI, Patherkandi Branch. Two SHGs viz. Nalibari
Mahila SHG and Nari Kalyan SHG had availed repeated loans. with the active support of
DRDA, 2282 Self Help Groups were formed in the district. The blockwise number of the
groups promoted by DRDA are as under :
2282 Total 8
361 R.K. Nagar 7
420 Durllavcherra 6
366 Badarpur 5
322 S. Karimganj 4
252 N. Karimganj 3
206 Lowairpoa 2
355 Patherkandi 1
No. of Groups Block Sl. No.
5.1.2. Micro Finance Profile in the district
3 No. of Govt. / other agencies likely to participate
1 No. of Govt. / other agencies participating
- 10 10 No. of additional branches to be roped in
- - 2 Of which no. of branches participating in linkage programme
3 17 27 Total No. of bank branches in the district
SCB RRB CBs
4 No. of additional NGOs to be roped in during 2006-07
5 No. of NGOs participating in linkage programme
10 No. of NGOs in the district
2 Total No. of blocks where SHGs are credit linked
7 No. of blocks where SHGs exists
7 Total No. of blocks
67
5.1.3. Means for expansion of linkage programme
It is learnt from the Participating banks that, they found it difficult to directly involve
themselves in promoting and nurturing linking the groups and that assistance to NGOs /
VAs in this regard is essential. NGOs promoting SHGs in the district has limited outreach.
The concerned agencies may give proper attention to promote, nurture and credit link the
SHGs in the district. Capacity building of NGOs/VAs and financial assistance for
promoting SHGs is critical to expansion of micro finance in the district.
Involvement of Farmers clubs present in the district may be explored to work as SHPIs.
More and more Farmers clubs may be opened in the district to carry forward the micro
finance as SHPI. State Government has recently started promoting SHGs through DRDA for
mainly with a view to finance them under SGSY.
5.1.4. Projection for 2006- 2007
SHG Bank -Linkage programme for the year 2006-07 for the district is given below:
200 500 600
No. of SHG to be credit
linked
No. of SHG to be savings
linked
No. of SHG to be
promoted
5.1.5. SHG Linkage Programme - Strategy
As training / awareness on SHG is the critical input to carry forward the micro finance in
the country, more no. of training-cum-awareness programmes need to be organised in the
district. Such training programmes may be organised for bankers / NGOs / Government
Departments, PRIs, SHG leaders and other agencies involved. Proposals for sanction of
grant assistance to a few NGOs promoting SHGs in the district for promoting and
nurturing SHGs and eventually linking them with banks may be encouraged.
The Gramin Bank officials may be sensitised and motivated to form SHGs in their area of
operation as there is tremendous potential for micro finance in the district. The clusters of
weavers, fisherman and artisans in the district may be organised in SHGs.
Involvement of Individual Rural Volunteers by banks under IRV Scheme of NABARD for
promotion of SHGs need to be encouraged.
Bankers / NGOs have to assess the health of SHGs before financing them. To facilitate the
rating, NABARD had already circulated the rating norms for ensuring the quality of SHGs.
Bankers / NGOs may follow the same or they may evolve their own rating norms to assess
the health of SHG before financing.
68
5.2. Farmers Club :
There is only one Farmers Club in the district viz. Tarulata FarmersClub. This club is run
by ladies only and have twenty members.
Commercial banks and RRB branches may encourage opening of more Farmers clubs in
the district. Each branch of CBs and RRBs have to promote minimum one Farmers Club.
5.3. Women development initiatives
5.3.1. Introduction
The women account for 48.8% of the total population of 10.03 lakh in Karimganj district.
The women in the district are carrying out household activities, they also equally
participate in income generation activities. Hence, credit needs of the women assumes
significance in the credit planning.
5.3.2. Credit Flow
Govt. Sponsored Programme like SGSY, PMRY etc. have specific targets to cover women
beneficiaries but credit flow to women beneficiaries. Total loans outstanding, granted to
women beneficiaries, as on 31.3.2005 was Rs. 595.21 lakh. This constitutes 4.4% of total
loans outstanding as on 31.3.2005 in the district.
5.3.3. Activity-wise Potential
Credit requirements of women under various sectors during 2006-2007, giving due
consideration to the thrust given to women's groups and the allocation made under various
govt. sponsored programmes is given below :
(Rs.lakh)
839.75 Total
94.70 Other 7
274.80 OPS 6
137.20 NFS 5
277.20 Crop Loan 4
28.20 Goat & Piggery 3
13.40 Poultry 2
14.25 Dairy 1
Share of women Activity Sl.No.
The above potential has already been included in the relevant sector in Chapter-II.
5.4. Other initiatives
Scheduled Caste/ Scheduled Tribes
As per 2001 census 130957 scheduled caste and 2901 scheduled tribes population were
present in the district. This constituted 13.34 % of total population.
69
Credit Flow.
Govt. Sponsored Programmes like SGSY, PMRY etc. have specific targets to cover SC/ST
beneficiaries. It is gathered from LDM that Rs. 624.00 lakh was advanced to SC/ST
beneficiaries as on 31.03.2005. However, the priority sector advances to the weaker section
of population as on 31.03.2005 was Rs. 1277.77 lakh and the percentage of weaker section
advances to the total advances was 9.38 %.
Target for Coverage of SC/ST during 2006-2007
10% of SC/ST population (as per 2001 census) may be covered under various Govt.
sponsored programmes during 2006-2007. The amount to be disbursed by banks is projected
at Rs.72.50 lakh to SC/ST beneficiaries.
70
Chapter VI
Performance of Credit Agencies
6.1. Introduction
Credit needs of the district are catered to by three major agencies, viz, Commercial Banks,
Regional Rural Bank and Cooperative Banks both in the short term and long term
structure. There are altogether 50 branches in the district of which Commercial Banks are
having 27 branches including 13 branches of Lead Bank, RRB 17 branches, SCB 3 branches,
SCARDB 2 branches and 1 PCARDB branch. Besides, there are 33 PACS and 932 FMCs in
the district.
6.1. Deposits
(Rs. lakh)
100.00 44900.29 39724.31 36281.24 50 Total
NA NA NA NA 1 PLDB 5
NA NA NA NA 2 SLDB 4
2.48 1114.99 1161.31 1021.78 3 SCB 3
14.62 6565.44 5369.51 4480.87 17 RRB 2
82.89 37219.86 33193.13 30778.59 27 CBs 1
2004-2005 2003-2004 2002-2003
% share as
on
31.03.2005
Deposits
No. of
branch
Agency
Sl.
No.
6.2. Loan Outstanding
(Rs. lakh)
100.00 13601.45 8838.47 6958.51 50 Total
NA NA NA NA 1 PLDB 5
NA NA NA NA 3 SLDB 4
2.21 301.18 293.02 272.96 3 SCB 3
16.10 2189.89 1339.25 795.67 17 RRB 2
81.75 11119.38 7206.20 5889.88 27 CBs 1
2004-2005 2003-2004 2002-2003
% share as
on
31.03.2005
Loan Outstanding No. of
branch
Agency Sl.
No.
6.3. Credit Deposit Ratio
30.31 22.25 19.2 All agencies
NA NA NA SLDB 4
27.01 28.22 26.7 SCB 3
33.35 24.94 17.8 RRB 2
25.70 21.71 19.1 CBs 1
2004-2005 2003-2004 2002-2003 Agency Sl. No.
71
6.4. Analysis :
All the banks have shown a positive growth in deposits. The growth of deposits during
2003-2004 over 2002-2003 was 9.50%. The growth rate, however, increased to 13% during
2004-2005 over 2003-2004.
6.4.1. Loan Outstanding: The growth of loan outstanding in case of all agencies during
2003-2004 was 27 % over 2002-2003, the same has further increased to 53.89 % during
2004-2005 over 2003-2004. The overall growth in loan outstanding has shown a positive trend
during last three years.
6.4.2. Credit Deposit Ratio: The credit deposit ratio of all the banks have shown
increasing trend during last 3 years. The CD Ratio was around 26%, 33% and 27% in
respect of CB, RRB & SCB respectively during 2004-2005. The overall CD Ratio of the district
was 30.31% as on 31.03.2005 which is just at par with State Average.
6.5. Performance to fulfill the National Goals during 2004-2005
(Rs. lakh)
6.86 595.21 1,277.77
(9.38)
785.42
(5.77)
7,628.32
(56.04)
13601.45 Total
0.00 0.54
31.99
(10.62)
41.48
(13.77)
42.52
(14.11)
301.18 SCB 3
0.00 21.55
320.16
(14.62)
126.56
(5.78)
1,690.47
(77.19)
2189.89 RRB 2
6.86 573.12
925.62
(9.93)
617.38
(7.49)
5895.33
(57.52)
11119.38 CBs 1
DRI
Loan
Loan to
women
Loans
to
weaker
section
Direct Loan
to
Agriculture
Priority
Sector
Loan
Outstanding
Agency
Sl.
No.
Note: Figures in parenthesis are percentage to total loan outstanding.
The priority sector lending obligation was met by the commercial banks and RRB,
however, SCB could not meet the same during 2004-2005. Target under direct loan to
agriculture could not be achieved by any agency.
72
6.6. Annual Action Plan - Performance during last 3 years
(Rs. lakh)
107.59 3519.32 2292.73 107.00 1739.73 1619.90 73.30 878.76 1198.80 Total
- - - - - - - - - PLDB 5
- - - - - - - - - SLDB 4
15.8 4.65 29.50 - - 12.91 0.00 - 22.56 SCB 3
149.7 905.81 605.25 489.39 650.70 132.96 179.00 310.65 173.51 RRB 2
157.4 2608.86 1657.98 73.88 1089.03 1474.03 56.70 568.11 1002.73 CBs 1
% Achie. Target % Achie. Target % Achie. Target
2004-2005 2003-2004 2002-2003 Agency
Sl.
No.
From the above table it is observed that RRB has overachieved its target for last three years
with 177% achievement against the target for 2004-2005. Achievement of commercial banks
during 2002-2003 was 56.7% which had increased during 2003-2004 to 73.88% and further
moved up to 105.7% during 2004-2005. Achievement against Annual Action Plan of the SCB
was very poor during last three years with 96% achievement against the target for
2004-2005.
6.7. Recovery Position
Recovery position of various agencies for the last three years in the district are as under:
(Rs. lakh)
37.60 417.65 1109.05 36.20 334.34 923.24 31.30 263.01 841.21 Total
0.30 0.11 36.92 1.80 0.69 39.14 2.70 1.06 38.89 SCB 3
63.30 179.56 283.89 59.50 133.07 223.63 60.60 113.80 187.73 RRB 2
33.30 237.98 788.24 30.40 200.58 660.47 24.10 148.15 614.59 CBs 1
%
Recove
ry
Recove
ry
Deman
d
%
Recove
ry
Recove
ry
Deman
d
%
Recove
ry
Recove
ry
Deman
d
2004-2005 2003-2004 2002-2003
Agency
Sl.
No.
It is evident from the above that the recovery of the bank in the district is very poor. The
overall recovery of the banks ranged from 31% to 38% during last three years. The
negligible recovery of SCB was hindering the development of Cooperatives in the district.
The recovery percentage of RRB is, however, more than 50% during last three years.
6.8. Financial Details at a Glance as on 31.03.2005
Financial details of RRB (CGB) and SCB as on 31 March 2005 are given in next page:
73
( Rs. lakh )
1,236.35 68 No. NA 14.33 NA Per Branch Prod
97.87 859 No. NA 0.28 NA Per Empl. Prod
8,865.21 NA NA 315.65 NA Profit / Loss
(-)2.34 % NA NA NA NA Net Margin (net of risk cost)
2.16 % NA NA NA NA % of T.C. to W.F.
NA NA NA NA NA Transaction Cost
4.62 % NA NA NA NA Financial Margin
3.27 % NA NA NA NA Average Cost of Funds
9.46 % NA NA NA NA Average Yield on Investment
0.30 NA NA 63.25 NA Recovery %
19178.39 NA 97.31 14187.83 14580.00 Investment
29667.69 NA 121.69 3650.64 3000.00 Loans Issued (outstanding)
341.02 NA 165.49 1820.42 1100.00 Borrowings
54063.39 NA 83.36 13336.84 16000.00 Deposits
8261.26 NA Reserve Fund(i/c Provisions)
552.44 NA 96.25 96.25 100.00 Share Capital
Ach. Target % Ach. Ach. Target
SCB RRB
Particulars
6.9. Status of SAMIS
SAMIS has not stabilised in the district and as a result the details of ground level
disbursement are not available. As the branches are not submitting the LBRs regularly the
flow of credit to various sectors could not be assessed. Greater efforts on the part of Lead
Bank is necessary in this regard. Defaulting bank branches may be pursued vigorously for
submission of pending LBRs. The Controlling Offices of defaulting bank branches may also
be requested to direct these branches to submit the same on regular basis so that SAMIS
gets stabilised in the district. Submission of LBRs need to be reviewed in all BLBC / DCC
meetings on a regular basis.
74
CHAPTER -VII
POLICY INITIATIVES
A. Government of India :
Highlights of Union budget 2005-06
Doubling Flow of Agricultural Credit : Commercial Banks, RRBs and Co-operative
Banks have been asked to increase the flow of credit to agriculture by another 30%
during 2005-06. Public sector banks to increase the number of borrowers by another 50
lakh. To ensure adequate credit availability to farmers so as to achieve 4% growth in
agriculture sector during the X Plan period, GoI had announced in 18 June 2004 a credit
package envisaging minimum 30% annual growth in credit flow to agriculture over a
period of 3 years from 2004-05 to 2006-07 for doubling of agriculture credit.
Assured irrigation facilities : Govt. of India has announced creation of assured
irrigation facilities for additional 10 million hectares of area over a period of five years
from 2006-2011.
National Horticulture Mission : Govt. of India has desired diversification of
agriculture from food/other crops to horticultural crops, dairy, poultry, fisheries,
pulses and oilseeds. In this backdrop, National Horticultural Mission was launched on
01 April to ensure an end to end approach having backward and forward linkages
covering research, production, post harvest management, processing and marketing,
under one umbrella, in an integrated manner.
Water use efficiency Sprinkler / Drip : To ensure water-use efficiency in agriculture,
micro-irrigation technology, comprising drip and sprinkler irrigation, is to be
promoted on a large scale. The coverage is to be increased from 1.2 million hectares at
present to 3 million hectares by the end of Tenth Plan and to 14 million hectares by the
end of Eleventh Plan.
Rural Knowledge Centre : Government of India has announced its support to 'Mission
2007' for setting up of Rural Knowledge Centres in every village. Mission 2007, a
national initiative launched by an alliance comprising nearly 80 organisations
including civil society organisations, was launched on the recommendation of National
Commission on Farmers for setting up Rural Knowledge Centres all over the country
using modern information and communication technology (ICT). NABARD has
earmarked Rs. 100 crore out of RIDF for the purpose.
Cluster approach for Handloom Sectors : The GoI announced to adopt cluster
development approach to promote production and marketing of handloom products. In
the first phase, 20 clusters is proposed to be developed. For the welfare of handloom
weavers, the coverage of life insurance scheme will be increased to 20 lakh weavers in
next two years. The coverage of health insurance package for weavers is proposed to be
increased to two lakh weavers.
75
Backward Regions Grant Fund : Govt. of India has set up Backward Regions Grant
Fund for development of backward districts with the initial allocation of Rs. 5000 crore
during 2005-06, and an equal amount would be allocated every year in the next four
years. Based on certain socio-economic variables, 170 districts have been identified as
backward district. Consequent upon the establishment of the Fund, the existing
Rastriya Sam Vikas Yojna (RSVY), envisaged to end in 2006-07, will be wound up with
suitable transition arrangements to protect the districts now covered under RSVY.
Outlay versus Outcome : In order to improve the quality of implementation and
enhance the efficiency and accountability of delivery mechanism, GoI has decided to
put in place a mechanism to measure the development outcomes of all major
programmes. It would be ensured that programmes and schemes are not allowed to
continue indefinitely from one plan period to next without an independent and in-depth
evaluation.
Union Budget has proposed to enhance the annual target of credit linkage to 2.5 lakh
SHGs during 2005-06.
Other Govt. Initiatives
Bio-fuels : To promote commercial cultivation of the Tree Borne Oilseeds (like
Jatropha, Karanj) and its processing, provision of adequate incentives have been made.
The Govt. of India has assigned NOVOD Board under the Ministry of Agriculture, the
responsibility for implementation of back ended credit linked subsidy scheme for
promotion of Tree Borne Oilseeds during the Xth Five Year Plan. The scheme envisages
50 % as bank loan, 20 % beneficiary's share and 30 % subsidy.
Agri Clinics and Agri Business Centres (ACABC) : The Ministry of SSIs, GoI have
identified nine activities, out of 20 enterprises covered under ACABC as eligible for
coverage under the Credit Guarantee Fund Scheme for Small Industries. The eligible
nine activities are : Maintenance and Repair of Agricultural implements & machinery
including micro irrigation systems, Agri Service Centres, Seed Processing Units, Tissue
culture, Production of Bio fertilizer, Bio-pesticides, Bio control agents, Honey and Bee
Product Processing Units, Feed Processing and Testing Units, Setting up of information
technology kiosks in rural areas for access to various agricultural related portals,
Setting up of Cool Chain from the farm level onwards.
Agri - Export Zones (AEZs): To take advantage of the new international trade
environment, GoI, through Agricultural and Processed Food Products Export
Development Authority (APEDA), had earlier established 48 AEZs. During the year, 12
new AEZs were approved by APEDA covering 36 new districts for promoting 11 crops
which include spices, cashew, tea, fruits, medicinal plants and pulses.
Stepping up Credit to Small & Medium Enterprises (SMEs) : A policy package to
step up credit flow to SMEs from Rs. 67600 crore in 2004-05 to Rs. 135000 crore by 2009-10
was announced. Public Sector Banks have been asked to fix their own targets to achieve
a min. of 20% annual growth in credit flow.
76
B. State Government Initiatives
Power Sector Reform : State Govt. Has decided to strengthen and augment the
power sector with particular emphasis on rural electrification and improvement of
distribution network. 3100 transformers to be installed. A Micro Hydel Project is
proposed to be installed in Karbi Anglong.
Road connectivity : Under AACP, 1000 kms of rural roads to be upgraded to all
weather roads including conversion of 285 nos. of STP bridges to RCC and
rehabilitation of 1000 km link / feeder road.
Education : Computers are to be provided to 230 schools under Rajiv Gandhi
Computer Literacy Programme.
Health : Govt. has decided to set up Six Regional Diagnostic Centres with modern
equipments for diagnosis, 21 Community Health Centres.
Drinking water in rural areas : A special programme to supply drinking water in
remote rural areas of the state has been launched under the Chief Ministers
package programme Mukhya Khowa Pani Jogan Abhijan to install 18600 spot
sources. The Govt. proposes to cover 200 villages and 5825 partially covered
habitations by safe drinking water.
Agriculture :
State agriculture policy focuses on assured irrigation, diversification of agriculture,
marketing facilities for agriculture produce, agricultural credit, crop insurance and
dealing with the agricultural sector as an area with maximum potential for
employment generation.
For mechanisation of agriculture, 800 tractors to be procured and given to SHGs on
50 per cent cost sharing basis.
During the project period of AACP, 16000 shallow tube wells and 20000 low-lift
pumps to be installed. 20000 hectares of agricultural land to be covered by micro
watershed. Besides, 750 tractors and 1500 power tillers to be distributed.
Decentralized agriculture extension to be piloted in 11 districts along with
development of 50 haats and 24 rural wholesale markets in agriculture surplus area.
Integrated development of horticulture through active participation of SHGs under
Technology Mission.
Irrigation : Additional irrigation capacity of 50202 hectares to be created during
2005-06. For efficient irrigation and maintenance of irrigation schemes, public
participation would be encouraged.
77
Dairy Development : For promotion of dairy in the state, Govt. has decided to
promote formation of 250 Dairy Cooperative societies and 250 SHGs.
Fisheries : 3000 hectares of Beels, 1200 hectares of farmers ponds along with
activities like development of community tank, integrated fish culture and fish seed
production to be developed under AACP.
Self Help Groups : Recognising the importance of SHGs in the development
process, Govt. has decided to focus on promotion and support to SHGs. All products
made and sold by SHGs have been exempted from tax on sales.
Employment generation :
Priority to be schemes and projects having relatively higher capital output and
employment investment ratios.
Formulate and implement specific employment generation schemes like Kalpataru.
Self employment to be provided to 50000 unemployed youths.
All products made and sold by PMRY units have been exempted from tax on sales.
Small and Cottage Industries : Generation of employment among the artisans by
improving their traditional skills, standardisation of their products and linking up
with the market. Modern skills and tools to be provided to artisans and craftsmen.
Mission to Generate Employment & Stimulate the Economy of Assam (2005-08)
The Mission is primarily aimed at generating substantial and sustainable
employment opportunities in the state within a short time frame, i.e. 2005-08. It is
also aimed to address certain aspects that have long term foundation impact on the
economy of the state.
Increasing income levels in agriculture sector by according greater emphasis on
promotion of cash crops, development of agricultural infrastructure, accelerated
development of dairy Sector and creation of Cluster of farms and agro based enterprises.
35000 ha additional area is proposed to be covered under horticultural crops, 6000 ha
medicinal and aromatic plants, 5000 ha under Jatropha & Pongamia (bio-diesel) and
8000 ha bamboo cultivation. The target is to generate at least 1 lakh sustainable direct
employment opportunities in the state during 3 year tenure of the Mission.
Stimulating development of Handloom and handicraft through improved designs,
better manufacturing techniques, and increase in mechanisation to generate
employment and additional income for around 50000 weavers/artisans.
Promoting tourism to attract domestic and foreign tourists by providing financial
and technical stimulus package to facilitate private enterprises to develop 5 tourism
circuits including 6 new private-sector Tourist Resorts/Inns.
78
Stimulating development of viable Small and Medium Enterprises (SMEs) through
financial and technical stimulus package. It is estimated to create 2000 direct and
sustainable job opportunities.
Development of about 250 acres of land to attract industrial investments and other
entrepreneurs.
Development of Manpower Skills by imparting technical vocational training to
qualified youth.
Making provision for Primary Health care Services.
Successful employment generation programmes to be given due cognizance.
Promoting Public-Private partnership model.
C. NABARD / Reserve bank of India
Flow of Credit to Agriculture
Keeping in view the realisation amongst bankers regarding increasing business
opportunities in financing agriculture, banks were urged to step up credit to
agriculture.
RBI has set up an Expert Group to formulate strategy for increasing investment in
agriculture.
The limit on loans to farmers through the produce marketing scheme has been
increased from Rs.5 lakh to Rs.10 lakh under priority sector lending.
Special Agricultural Credit Plan (SACP) was extended Private Sector Commercial
Banks. These banks were advised to fix the SACP target showing a growth rate of 30
% over disbursement made during 2004-05.
Banks were also advised to increase their disbursements to small and marginal
farmers to 40 percent of their direct advances under SACP.
Banks were allowed to waive margin / security requirement for agricultural loans
up to Rs. 50000.
NABARD has revised the Model Kisan Credit Card scheme with a view to providing
the comprehensive credit requirements of farmers covering term credit, working
capital for agriculture and allied activities and a reasonable component of
consumption needs under a single window.
Operational guidelines for implementation of Debt relief Measure were issued to
Co-operative Banks and RRBs.
Liquidity support scheme for Cooperative Banks and RRBs for supporting
conversion/reschedulement of farmers' dues at ground level under the scheme
"farmers in distress" and "farmers in arrears" was announced.
79
143 model bankable projects for various investment activities were prepared and
circulated to banks .
Micro-finance
NABARD has set a target of linking additional 5.85 lakh SHGs to banks by
end-March 2007.
NABARD launched a pilot project viz. Micro Enterprise Promotion by SHGs and
e-Grama financing Joint Liability Groups and Rythu Mithra groups.
The Reserve Bank has enabled non-governmental organisations (NGOs) engaged in
micro-finance activities to access ECBs up to US $ 5 million during a financial year
for permitted end-use, under automatic route, as an additional channel of resource
mobilisation.
Modalities for allowing banks to adopt the agency model by using the infrastructure of
civil society organisations, rural kiosks and village knowledge centres for providing
credit support to rural and farm sectors and appointment of micro-finance
institutions (MFIs) as banking correspondents are being worked out by RBI.
Credit Flow to Small Scale Industries
The Credit Information Bureau of India Ltd. (CIBIL) is working out a solution that
would provide comprehensive credit reports on SSIs.
Existing guidelines on financing small scale sector, debt restructuring, nursing of
sick units, etc. is being reviewed with a view to rationalising, consolidating and
liberalising them.
Under a scheme to be drawn up by the RBI, banks will be encouraged to establish
mechanisms for better coordination between their branches and branches of SIDBI
which are located in 50 clusters identified by the Ministry of Small Scale Industries,
Government of India.
Units with investment in plant and machinery in excess of SSI limit and upto Rs. 10
Crore has been categorised as Medium Enterprises.
NABARD would also develop 50 additional clusters in partnership with other
agencies and take up intensive development of five clusters over a period of five
years, exclusively with Banks involvement focussing on agro-based, food
processing, manufacturing / industrial activities, handlooms and handicrafts.
Agriclinics / Agri business centre :
Margin money and collateral security requirement for bank loan up to Rs. 5 lakh
under ACABC scheme has been waived.
80
Banks were advised that shortfall in margin money / down payment by the
borrower can be supported out of Soft Loan Margin Money Assistance Fund of
NABARD subject to a maximum of 50 % of margin prescribed by banks.
Rate of interest on refinance was fixed at the lowest slab irrespective of size of loan.
Soft Loan Margin Money Assistance Scheme has been de-linked from refinance
extended in cases of loans beyond Rs. 5 lakh.
Six months' expenses for setting-up of units were allowed to be capitalised and
included in the project cost.
ITCs e-Choupal :
The e-choupal, promoted by ITC Ltd., a multi product agro-business corporate, is an
information technology enabled initiative aimed at providing guidance to farmers
through readily accessible on-line knowledge on scientific farm practices, weather
conditions and relevant market information including real time market. They serve
about 4-5 contiguous villages and are managed by leading farmers in the village
called "Sanchalaks". More than 5200 e-choupals, covering around 20000 villages have
been established. NABARD has supported a project entitled "Diagnostics for
e-choupal" by ITC Ltd. in Madhya Pradesh with a grant assistance of Rs. 9 lakh. The
objective of the project is to develop an IT based practical handbook and diagnostic
tools for production and protection of major crops of the region with the help of
experts from Agricultural Universities. ITC Ltd., with this support, has brought out
video films in CDs covering best practices on soil sampling, seed germination test
and soyabeen cultivation for the benefit of farmers. NABARD, on a pilot basis, has
sanctioned Revolving Fund Assistance to 20 identified Sanchalaks of e-choupal.
Mahindra Subhlabh Services :
In order to develop the tie ups with banks for financing farmers, NABARD has
launched a scheme for financing FSCs in collaboration with Mahindra Shubhlabh
Services Ltd., a wholly owned subsidiary of Mahindra & Mahindra Ltd.
Agri-Export Zones :
During the year 2004-05, 12 new AEZs were approved by APEDA covering 36 new
districts for promoting 11 crops which include spices, cashew, tea, fruits, medicinal
plants and pulses. Total number of approved AEZs has gone up to 60, spread over 20
states. AEZ covering eight districts of Assam for Ginger has been approved by Govt.
of India. The total investment committed under the AEZ programme by all agencies
stands at Rs. 1724 crore, including private investments of Rs. 970 crore.
Promotion of Bamboo cultivation :
NABARD aims at developing bamboo farming, processing and marketing as a
mainstream activity by changing the forestry mindset to farm mindset. NABARD
81
has constituted a Bamboo Cell at its HO and prepared a document highlighting
policy & promotion, financial assistance, capacity building and networking.
Banking plan to boost bamboo cultivation in different states have been prepared. It
is envisaged to provide credit support for development of bamboo over an area of 1
lakh hectares with an estimated investment of Rs. 200 crore annually.
Medicinal and Aromatic Crops :
NABARD has prepared state-wise directories of manufacturers and traders and
formulated 45 bankable model schemes of high demand species. NABARD is promoting
the cultivation of MACs in AEZs. The unit cost / scale of finance for MAC cultivation
has been fixed. NABARD provides cent per cent refinance at the lowest slab.
To ensure a stable market and remunerative prices for MACs grown by farmers,
NABARD initiated dialogues with corporate houses like Reliance Life Sciences, GUFIC,
Keva Biotech, Natural Remedies, Zandu Pharmaceuticals, Healthy Herbals, etc.
Contract Farming :
The National Agricultural Policy of the GoI and the Inter Ministerial Task Force on
Agricultural Marketing Reforms have recognised the increasing importance of
contract farming in agri-business.
NABARD has developed a special refinance package for contract farming
arrangements (within and outside AEZs) aimed at promoting increased production
of commercial crops and creation of marketing avenues for farmers.
NABARD has sponsored nearly 11000 Farmers Club as on 2004-05.
Joint Liability Groups has been launched based on the learnings from the
SHG-Bank linkage programme. It will facilitate financing tenant farmers, oral
lessees, share croppers and small & marginal farmers and enable them to be
released from the clutches of money lenders.
Special Package for NER
Prescribed eligibility norms relating to overdues/NPAs for sanction of ST credit
limits for SAO to cooperative banks and RRBs was not insisted upon.
Concessional rate of interest (at present 5.25 %) to SCBs on ST (SAO) credit limits &
ST weavers' finance and cent per cent refinance for thrust areas & NFS activities.
Relaxed norms of NPA and restricted refinance (for availing refinance) for the
benefit of CBs, RRBs and Cooperative banks.
The rate of interest on refinance on investment activities was fixed at the lowest
slab (at present 6 %) for all agencies and for all activities.
NABARD provided grants of Rs.10.20 lakh to Indian Institute of Bank Management,
Guwahati to cater to the training needs of personnel of all banks in NER.
82
CHAPTER - VIII
RESPONSE FROM FARMERS
8.1 Introduction
Karimganj district is bestowed with fertile land. The district is backward mainly due to
lack of commercialisation of agriculture, lack of awareness among the farmers and low
institutional credit. In order to make the Potential Credit Plan more realistic and to direct
the same towards the ground level requirements, response of some of the farmers was
collected from the field. The farmers interviewed were generally those who had availed of
credit facilities from United Bank of India and Central Bank of India.
8.2 Analysis of information / data received from farmers
Paddy is the major crop cultivated by the farmers. However, to the extent of availability of
surface irrigation facilities the farmers are growing rabi crops like vegetables, potato,
mustard etc. Bamboo is being grown in the peripheries of the farm lands. Chemical
fertilisers are being used by farmers on a moderate scale. Source of seed for paddy is
mostly from own farm or other farmers. Some times they get seeds from Government deptt.
Seeds of vegetables and other crops are purchased by the farmers from the market.
Mechanisation of farm has not taken place in the district due to small land holdings and
plough bullocks are the most common form of farm power. In addition to crop husbandry,
farmers also undertake allied activities like fish farming, dairy and poultry. But these are
generally supplementary in nature and not managed scientifically. There is lack of
commercial orientation to any agricultural activities.
Most of the farmers interviewed had availed of credit limits under the Kisan Credit Card
scheme. The scheme is popular since it provides adequate and timely credit to farmers for
their cultivation needs including purchase of inputs throughout the crop cycle and offers
flexibility in operation of the account. Credit limit sanctioned under KCC by the bank was
reported to be adequate. However, some farmers feel that they should be sanctioned bigger
limit so that they can expand their agricultural activity. The crops of the farmers have been
insured under the Rashtriya Krishi Bima Yojana for KCC holders. A few farmers have
taken life insurance policy as well.
Most farmers generally do not have marketable surplus. The farmers themselves sell their
produce in the nearby market without involving any middleman. But for the farmers who
produce enough crops, there is no organised marketing facilities in the district.
8.3 Expectation of farmers on issues relating to credit, infrastructure,
marketing, insurance etc.
Infrastructure like road and transport facilities is not well developed in the district. As a
result, farmers producing excess crops find difficult to transport their produces to the
83
markets. The district is chronically prone to floods causing extensive damage to crops
every year. Agricultural inputs are not easily available in rural areas due to ineffective
extension machinery. Supplementary irrigation facilities are also not developed inspite of
several subsidy schemes under implementation. As a result, farmers follow traditional
practice of cultivation leading to lower productivity.
There is no organised marketing effort from Govt. for marketing agriculture produces.
Food Corporation of India (FCI) is not procuring grains for last several years and
therefore, farmers are forced to sell their produce in the open market. As the State
Government is not declaring Minimum Support Prices for grains, the market price is
dictated by the middlemen to the disadvantage of the farmers. Due to lack of storage
facilities in the rural areas, any increase in production causes lowering of prices.
Non-settlement of insurance claims in the wake of wide spread crop failure due to floods in
the past in the district, many farmers became defaulters to the banks. As reported, the
insurance company could not settle the claims due to non-issuance of certificate by the
State Govt./District Authority declaring crop damage due to natural calamities. Farmers
are of the opinion that the State Govt. should initiate crop cutting experiment to assess the
crop damage on a regular basis as the district is flood prone and every year farmers lose
their crops. They also felt that declaration of crop damage due to natural calamities like
flood etc. should be rationalised / simplified, so that they get the insurance benefit
whenever crop damage occurs due to floods etc. in the district.
Framers interviewed were generally satisfied with the services extended by the banks
especially under KCC scheme. However, a few farmers wanted higher limit so that they
need not depend on the other sources for their credit requirement. The banks are yet to
provide credit for other activities of the farmers under KCC scheme.
8.4 Recommendations/ Suggestions
The under development of the district may be attributed to under utilisation of natural
resources as well as lack of commercial orientation. The food habit of the local population
demands exploitation of potential of allied activities like fish farming, dairy farming and
animal husbandry. Efforts are required to develop organised marketing facilities for
agricultural produce in the district. The State Govt. may announce Minimum support
Prices for food grains in periodic intervals. Further, following steps are needed to
maximise the agricultural production in the district:
1) Cooperative Credit Institutions may be revitalised for channelising credit as well as
marketing.
2) Linking of SHGs/FMCs with the cooperatives for production and marketing.
3) Improvement of infrastructure like road, transportation, village bazars/hats etc.
84
4) Creation of storage facilities in Govt. as well as private sectors.
5) Improvement in extension services and dissemination of information on market
prices, availability of agricultural inputs etc.
6) Timely availability of quality seeds and other agriculture inputs may be ensured.
7) System of crop cutting Experiments may be introduced to assess losses due to
natural calamities to ensure timely settlement of claiming of Crop Insurance.
8) Effective flood control measures may be taken.
9) Farmers may be trained to take up scientific/ modern agriculture productions.
*******
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