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RABI CAMPAIGN 2015 NABARD. SEQUENCE OF PRESENTATION. AGRARIAN CRISIS - Issues. Climate Change Declining share of agriculture in GDP :55% population still depending on agriculture Large proportion of small / marginal holdings Limited access to irrigation
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RABI CAMPAIGN 2015 NABARD
AGRARIAN CRISIS - Issues • Climate Change • Declining share of agriculture in GDP :55% population still depending on agriculture • Large proportion of small / marginal holdings • Limited access to irrigation • Higher indebtedness of farmers as compared to their annual income • Limited Accessibility to institutional credit
SOLUTIONS – Role of GOI/SG • Diversification of livelihood activities – Crop/ Animal Husbandry + NFS • Drought proofing through Watershed • Shift in focus from production to post-harvest management – increasing share of farmers in the consumer rupee; • Increasing Warehousing/Cold Storage facilities • Upscaling agri-business and agri-clinic activities • Risk Mitigation through Insurance.
AGRICULTURE CREDIT – COVERAGE OF SF/MF & TF/OL/SC • ISSUES: • Low coverage of SF/MF by institutional credit- about 44% against 52% for all farming households (NSSO 70th Round) • Lack of access to credit by Tenant Farmers/Oral Lessees/Share Croppers remains challenge • SUGESTIONS – Role of S. Govt. • Formalization of oral leasing , e.g. AP • Promotion of JLGs • Digitisation of land records – access to bankers
AGGREGATION OF SF/MF & RUPAY KCC • ISSUES: • Increasing marginalization of holdings • (average size down from 1.33 ha in 00-01 to 1.15 ha in 10-11) • Rupay KCC – low coverage • Aggregation and marketing of produce of SF/MF • SUGGESTIONS - Role of State Govt. • Promoting POs - 1091 FPOs sanctioned & 563 formed by NABARD • Accelerate issue of RupayKisan Credit Card – Cooperatives
Capital Formation in Agr Falling Trend in Agri Term Loans (% in overall agricultural credit)
CAPITAL FORMATION IN AGRICULTURE • ISSUES: • Stagnating trend in capital formation in agriculture • Low share of public sector investment in capital formation (15%) • Infrastructure gaps hinder capital formation and Long Term credit flow • SUGESTIONS – Role of S Govt. • Increasing public investments through RIDF • Focus on Irrigation & Recharging Ground Water • Automated Weather Stations • Policy interventions for stepping up agricultural term loans, High Tech Agr
Initiatives of NABARD • 1.47 lakh Farmers’ Clubs promoted with around 22 lakh farmers – Extension agents of State Govts. • 1,835 Watersheds with 18.98 lakh ha covering farmers in 18 States • 575 Tribal Development projects with 4.47 lakh acres covering 27 states • 7.33 lakh rural youth covered under SKILL BUILDING programmes • Promoting Producers Organization
Risk Mitigation - CROP INSURANCE - Issues • Low coverage under crop insurance – under 20% • Notification of crops – not done by all State Govts. • High Insurance premiums • Technology - Delay & authenticity of data through Crop Cutting Exp. • Temporal variation – insurance phases not aligned with various crop growth stages - GOI
Risk Mitigation - CROP INSURANCE - Suggestions • Group insurance scheme for farmers • Subsidization of premium • Estimation of crop yield by using Geo informatics technology • Quick Payout of Compensation & Claims • Accreditation of Automated WS
Sectoral share under RIDF disbursements Agri related Rural Bridges (₹crore) Social Sect. Irrigation Rural Roads Total RIDF disbursements:₹1,66,489 Cr. as on Mar 2015
Spurring Rural Growth - Infrastructure Development Rural Infrastructure Development Fund (RIDF) 258 lakh ha under assured irrigation 3.96 lakh km of rural roads (No. of roads:1,08,996) 9.61 lakh meters of rural bridges (No. of bridges: 18,910) Godownswith 8.13 MMT capacity (No. of godowns:1,883) Warehousing Infrastructure Fund (WIF) 2013-14 3,523 dry and wet storage units of 9.81 MMT capacity funded
Spurring Rural Growth - Infrastructure Development Cumulative Economic and Social Benefits (on 31 March 2015) Particulars Benefits Gross Domestic Product (`cr) 47,843 Employment (No. of jobs) 179 lakh Non Recurring Employment Irrigation (lakh man days) 34,174 Others (lakh man days) 28,530 Rural Roads and Rural Bridges (lakh man days) 50,450
States implementing Watershed Projects Andhra Pradesh Haryana Uttar Pradesh Bihar Himachal Uttarakhand Chhattisgarh MP West Bengal Kerala Maharashtra Gujarat Orissa Jharkhand Karnataka Rajasthan Tamil Nadu Jammu & Kashmir Telangana