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NABARD projects Rs 1015.39 Cr Potential Linked Credit Plans in Nagaland’s agri sector

Nagaland News

Kohima, March 12: National Bank for Agriculture and Rural Development (NABARD) Nagaland Regional Office (NRO) Dimapur has projected a whooping Rs 1015.39 crore Potential Linked Credit Plans (PLPs) for Financial Year 2023-24 in the priority sector (agriculture) of Nagaland.
NABARD NRO Dimapur made the PLP projections through the State Focus Paper (SFP) 2023-24 released by Agriculture Production Commissioner (APC) and DG ATI, R Binchilo Thong during a one-day state credit seminar held in Kohima on March 10.
The State Focus Paper presents potentials for various priority sectors in the State, highlights the constraints in various inputs for development, identifies critical gaps in infrastructure and provides suggestions for improvement, thus attempting to provide a complete perspective for development planning for the state for the Financial Year 2023-24, the SFP stated.
Out of the total 16579 geographical area of Nagaland, 52% is under forest cover, it said adding that the Net Sown Area as on 31 March 2021 is 3.86 lakh Hectare (Ha) with the cropping intensity of 138%.
The sector wise projections for priority sector amounting to Rs 1015.39 crore is as follows:
Farm Credit for Crop Production, Maintenance and Marketing, Water Resources, Farm Mechanisation, Plantation and Horticulture, Forestry & Waste Land Development, Animal Husbandry- Dairy Development, Animal Husbandry – Poultry Development, Animal Husbandry-Sheep, Goat and Piggery Development, Fisheries & Others (bullock, carts, two wheelers, etc.) – Rs 466.16 crore.
Agriculture Infrastructure: Construction of Storage and Marketing Infrastructure, Land Development, Soil Conservation, Watershed Development & others – Rs 18.06 crore.
Agri Ancillary Activities: Food & Agro Processing & others – Rs 29.88 crore.
Agriculture Micro, Small and Medium Enterprises Investment Credit and Working Capital – Rs 331.84 crore
Agriculture Export credit, Education & Housing – Rs 79 crore
Agriculture Infrastructure – Social Infrastructure involving bank credit, Renewable Energy & Others – Rs 90.42 crore.
A gradual shift from shifting cultivation to horticultural crops is noticed due to better returns, lower risk and lesser maintenance requirements, it said, adding that Agriculture provides livelihood to nearly more than 60% of the population.
The State is blessed with abundant forest cover adding to its natural beauty, in addition to its pristine hills which can make it a preferred holiday destination for both domestic and international tourists, it said.
On the State’s economy, the SFP said that the GSDP at current prices is estimated to have increased from Rs 30425.11 crore in 2020-21(Provisional) to Rs 33,705.84 crore during 2021-22(A.E),
The GSDP growth rate for 2021-22 (A.E) at current prices is estimated at 10.78% as against 2.39% achieved in 2020-21(P). At constant prices, the GSDP for 2021-22 (A.E) is estimated at 18,991.71 crore from 17.772.22 crore in 2020-21 (P) registering a growth of 6.86%.
During 2021-22(A.E), the percentage contribution to the Gross State Value Added (GSVA) at current prices of Primary, Secondary and Tertiary sectors are 28.97%, 9-77 and 57.05% respectively, it said.
The Per Capita Income (PCI) of the State is estimated to have increased from Rs 1,39,437 in 2020-21(P) to Rs 1,52,308 in 2021-22 (A.E), it maintained while quoting the Nagaland Statistical Handbook 2022.
Giving the Banking Profile in the State as on March 31, 2022, the SFP stated that the banking network comprises of 192 bank branches belonging to 22 Commercial Banks (12 public sector and 10 private sector), one State Cooperative Bank and one Regional Rural Bank.
Commercial banks operate through 159 branches while State Cooperative Bank has 21 branches and Regional Rural Bank has 10 branches, it said.
Ground Level Credit Flow (GLC) Trend in Nagaland: The GLC flow under Priority Sector increased from 617.31 crore during 2020-21 to 651.18 crore during 2021-22, a 5.49% increase.
Trends of ACP achievement under Priority Sector during the last three years is as under: The total agricultural advances during 2021-22 was Rs 223.14 crore, which showed a growth of 15.20% over the previous year.
The disbursements under MSME and Other Priority sectors were of Rs 355-74 crore and Rs 72.28 crore respectively. The MSME Sector has registered a negative growth of -9.14% and a 125.52% growth under Other Priority Sectors, as compared to their performance during the previous year.
The share of Agriculture Credit (Crop Loan+Term Loan) during 2021-22 was 25.3% of total advances, which registered improvement from 25.3% and 6.85% during 2020-21 and 2019-20 respectively.
As on March 31, 2022, a total of 1,21,123 people have been enrolled under the PM Jeevan Jyoti Bima Yojana. Similarly, 3,68,649 persons have been covered under the PM Suraksha Bima Yojana. 2,15,06 persons have been covered under Atal Pension Yojana.
The total number of accounts under PM Jan Dhan Yojana stood at 3,45,049 as on March 2022 while 11 banks have 274 Banking Correspondents/Customer Service Points in rural areas of Nagaland.
Maintaining that agriculture is the largest employer with more than 60% of the workforce engaged in the sector in the State, it said the potential for credit support assessed for Farm credit (both crop loan & term loans) for the year 2023-24 is Rs 3466.16 crore.
Issue of Kisan Credit Cards (KCCs) for crop loans, Animal Husbandry and Fishery activities will further boost farm credit, it suggested.
Considering the importance of agriculture and allied sector in increasing income, employment and achieving inclusive growth, it is imperative to increase investment in the sector, especially keeping in view the Centre’s aim of doubling farmers’ income, it said.
The SFP-2023-24 also suggested making available scientific facilities as one of the critical requirements to ensure remunerative prices to farmers and reduce losses on account of improper storage and distress sale.
There is scope for development of godowns, cold storages and ripening chambers in private sector through bank loan for which the potential for credit support assessed for Storage Godowns Market Yards for 2023-24 is Rs 12.64 crore, it said.
The potential available for the Land development, Soil Conservation and Watershed development sector for 2023-24 has been estimated at Rs 25.8 crore.
Food and Agro processing plays a significant role in increasing value addition in agriculture and horticultural produce, diversification and commercialization of agriculture, reduction in wastage of farm produce, generating employment opportunities and enhancing export earnings, it said.
The potential assessed for lending to agro processing units, for 2023-24 is Rs 16.77 crore. Implementation of the PM Scheme for Formalization of Micro Food Processing Enterprises (PMFME) through Directorate of Industries & Commerce, Nagaland will further boost this sunrise sector in the State, it said.
As the agriculture sector provides sustenance to majority of the state’s population, it is imperative that the focus of development should be on increasing capital formation in the agriculture and allied sector through public and private sector investment, it said.
Rural Infrastructure Development Fund (RIDF): Since inception of RIDF in 1995-96, cumulatively, 11 hydro power projects, 57 minor irrigation projects, 321 soil conservation projects and 294 agri & allied projects, have been sanctioned to: the State Government. Further, to develop infrastructure for rural connectivity in the State, NABARD has sanctioned 443 number of road & bridge projects for creation of rural road networks and bridges connecting remote parts of the state.
The revision in Micro, Small and Medium Enterprises (MSME) guidelines by RBI has removed the distinction between manufacturing and service industries from this year. Bank loan to Startups up to Rs 50 crore has also been included under this priority sector head.
There is good potential for supporting micro enterprises under MUDRA particularly working capital requirements of small traders.
A credit flow projection of Rs 331.84 crore has been assessed for MSME sector during 2023-24, it stated, adding that timely sanction of loans, Common Facility Centres, promotion of ancillary units would further boost development of MSME sector in the State.
Spring-shed based Watershed Development: Due to adverse impact of climate change in recent years, the springs, which are lifeline of the North Eastern Region (NER), are getting dried up affecting agriculture and livelihood of rural community.
In order to revive and rejuvenate these springs and minimize the adverse impact of climate change on water availability both for human consumption and irrigation, especially during off-season, NABARD has launched an innovative and integrated springshed-based participatory watershed development programme in the NER, including Sikkim, on a pilot basis with financial support under WDF since January 2017.
In Nagaland, a total of 23 projects – 18 under PIP and 5 under PPIP, each covering a maximum treatment area of 300 ha. have been sanctioned.
Tribal Development Programmes: NABARD has been closely associated with tribal development and sustainable livelihoods. Under Tribal Development Fund, NABARD has sanctioned a total of 16 projects in the State with a total grant assistance commitment of Rs 2598.16 lakh and soft loan assistance of Rs 75 lakh, covering 5750 rural households in 18 RD blocks through livelihood interventions like plantation crops, soil and water conservation measures, etc.
The orchard based livelihood development programme has paved the way for sustainable livelihood of the beneficiary families, it said.
NABARD is supporting livelihood interventions through conduct of Micro Enterprise Development Programmes (MEDPs), Livelihood Enterprise Development Programmes (LEDP) and marketing interventions like Rural Mart and sponsoring marketing events.
Giving the way forward, the SFP suggested that the State Government may explore for enhancing public investment for creation of rural infrastructure while banks need to improve their credit delivery by covering more farmers under KCC which is still very low in the State.
Banks have been asked to explore financing in potential areas where rural infrastructure/sectoral developments have been created by the Government and also promotion of value addition of various farm and off-farm products of the State.
If industries have to be set up in the state, sufficient labour force with requisite skills are required from within the state, the SFP 2023-24 maintained while also suggesting GI tagging and Organic Certification be taken up to cover as many products and areas of the State as possible. (Page News Service)