Increasing credit flow for agri allied activities

GROUP NO. 4 MEMBERS Santhosh Kumar, K Sunit Kumar Biswal Prasad Raut Vinod Gulhane Ramamoorthi, K Vikitha rani Muthu Kumar, D Swarnalata Misra Mukesh Kumar Meena

Co ordinator:
Shri. V. P. Saxena Sr. Manager (Faculty)

Introduction: Agri & allied activities

One of the largest contributors (GDP) almost 18.5% of total Providing needs of society & the raw materials for segments of Indian industry. Livelihood for almost two thirds of the work force. Agriculture to grow @ 4 per cent p.a.
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AGRI ALLIED SECTORS

Dairy Poultry Fishery Goat and sheep Piggery Apiculture Sericulture
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Need for credit flow to allied activities of agriculture

Three major reasons for switch over to agri allied activities are Change in crop production (table 1) Change in food consumption (table 2) Portfolio concept

Table 1.

Changing Pattern of Production

72 70.9 70.2 70
% of Total production

71 31.5 69.5 26.2 28.3 67.6 28.5

35 29.5 30 25 67.4 66.6 20 15 10

68 20.3 66 20.1

23.4

64.5 64

62

5 0 60-61 70-71 80-81 90-91 2000-2001 2001-2002 2002-2003 2003-2004 Livestock& fishing(%)

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crop sector(%)

Table 2. Consumption Expenditure on Food grains, Fruits & Vegetables & Other Food Items (percent) Source: Economic Survey, 2001-02, Government of India.
Year (NSS round) Food grains Fruit and vegetables Rural 10.2 Urban 9.9 Milk, meat, egg and fish Rural 13.4 Urban 19.5

Rural 1972-73 (27th) 1987-88 (43th) 1993-94 (50th) 1999-00 (55th) 63.1

Urban 42.0

47.8

33.2

12.7

13.8

18.6

23.2

44.8

31.6

14.4

15

20.3

24.1

44.1

31.8

14.5

15.6

20.4

24.5

Livestock Sector
India ranks first in buffalo population, second in cattle and goat, third in sheep, fourth in ducks & fifth in chicken The ground level credit (GLC) increased from Rs.1,763 crore during 1997-98 to 2,221 crore during 2001-02 and further to Rs.3,097 crore during 2004-05 for this sector. Non-availability of quality animals, poor management, poor infrastructure, inadequate processing facilities 8 are some constraints

Fisheries Sector
India is the third largest producer of fish in the world Inadequate ancillary facilities like Mini Fish Seed Hatcheries, rearing of fingerlings, processing units, market yards, fish feed plants, etc., are major constraints The GLC flow to the fisheries sector that increased from Rs.338 crore during 1997-98 to Rs.508 crore during 2001-02 and further to Rs.1301 crore during 2004-05.
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Ground level credit flow for Horticulture (Rs. In crore)

2005-06 4481

2006-07
2007-08 CAGR (LAST 10 YEARS) CAGR (LAST 5 YEARS)

5266
5942 26.36 % 44.10 %

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AGRO AND FOOD PROCESSING SECTOR Sector covers fruits, vegetables, meat and poultry, milk & milk products, fisheries, consumer product groups. Fruits and vegetable processing is expected to increase to 10 per cent by 2010 and to 25 per cent by 2025 Benefit the farmers in better realization of value of their produce
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Cold Storage Infrastructure

Establishment of cold storages has picked up since the mid nineties Processing function adds value to the products and enhances the incomes of the farmers in addition to generating employment

High investment with entrepreneurial skills are required for creating and managing these infrastructure. 12

PROJECTED GLC IN AGRICULTURE DURING 11TH FYP

Source: (Planning Commission, 2006, An Approach to the 11th FYP, GoI).

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SCHEMES OF BANKS
DAIRY Purchase of animals Milk collection units Setting up veterinary dispensary Mobile Artificial insemination unit Vaccine manufacturing units POULTRY Layer farms for egg production Broiler production Feed manufacturing units Layer and broiler hatchery

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OTHER LIVESTOCK Sheep and goat rearing Rearing rabbit Growing emu FISHERY Setting up of hatchery Prawn culture HORTICULTURE Orchards Vegetables Floriculture Food processing units

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Other allied sectors

Sericulture Bee keeping Vermiculture (hatchery and vermi compost) Biofertilizers production units Bio control agent production units Compost preparation units Mushroom cultivation

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SCHEMES BY GOVT. TO ALLIED SECTORS OF AGRICULTURE

Animal husbandry
1. National Project Breeding for Cattle & Buffalo

2. Livestock Health & Disease Control (LH & DC) 3. Livestock Insurance Scheme
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Schemes for Horticulture

SCHEMES OF NHB 1. Development of commercial Horticulture through Production and Post-Harvest Management 2. Capital Investment Subsidy for Construction / Modernization Expansion of Cold Storage and Storage's for Horticulture Produce 3. Technology Development and Transfer for Promotion of Horticulture 4. Market Information Services for Horticulture Crops 5. Horticulture Promotion Services (including terms of reference for Techno-economic Feasibility Study)
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FISHERIES

1. Scheme on Development of Inland Fisheries and Aquaculture: Ministry of Agriculture

2. Centrally sponsored scheme on development of marines fisheries, infrastructure and post harvest operations

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SERICULTURE Central Silk Board (CSB) has been implementing a Centrally Sponsored scheme namely Catalytic Development Programme (CDP) FOR AGRICULTURE GRADUATES Agri Clinics and Agri Business Centres Scheme (Ministry of Agriculture, Government of India, in association with NABARD and MANAGE )

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GOI schemes through NABARD

Venture capital fund for dairy and poultry Establishment of agri clinics and business centres Capital investment subsidy scheme for construction/modernization/expansion of cold storage Capital investment subsidy scheme for rural godowns Capital investment subsidy scheme for commercial production units of organics inputs
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WAYS TO ENHANCE CREDIT FLOW TO AGRI ALLIED ACTIVITIES Create awareness among farmers through advt. Conducting kisan melas Educate farmers through progressive farmers Get assistance from state agriculture dept. Approach farmers through farmers club Arranging campaigns Help from NGO

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