1 RABI CAMPAIGN 2015 NABARD

2 SEQUENCE OF PRESENTATION Agrarian Crisis – Issues & Solutions Agriculture Credit – Coverage SF/MF Capital Formation in Agriculture Risk Mitigation – Crop Insurance

3 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

4 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.

5 Credit flow to agriculture

6 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 70 th 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

7 AGGREGATION OF SF/MF & RUPAY KCC ISSUES: Increasing marginalization of holdings (average size down from 1.33 ha in 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 FPOs sanctioned & 563 formed by NABARD Accelerate issue of Rupay Kisan Credit Card – Cooperatives

8 Capital Formation in Agr Falling Trend in Agri Term Loans (% in overall agricultural credit)

9 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

10 Initiatives of NABARD 1.47 lakh Farmers’ Clubs promoted with around 22 lakh farmers – Extension agents of State Govts. 1,835 Watersheds with lakh ha covering farmers in 18 States18 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

11 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

12 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 Risk Mitigation - CROP INSURANCE - Suggestions

13 THANK YOU

14 Sectoral share under RIDF disbursements Total RIDF disbursements: 1,66,489 Cr. as on Mar 2015 ( c rore ) Irrigation Rural Roads Social Sect. Agri related Rural Bridges

15 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) Godowns with 8.13 MMT capacity (No. of godowns:1,883) Warehousing Infrastructure Fund (WIF) ,523 dry and wet storage units of 9.81 MMT capacity funded

16 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

17 States implementing Watershed Projects Andhra PradeshHaryana Uttar Pradesh Bihar Himachal Uttarakhand Chhattisgarh MP West Bengal Kerala Maharashtra GujaratOrissa JharkhandKarnataka Rajasthan Tamil Nadu Jammu & KashmirTelangana

18 States implementing Tribal Dev.Projects S.NoStateS.NoState 1Andaman and Nicobar14Maharashtra 2Andhra Pradesh15Manipur 3Arunachal pradesh16Meghalaya 4Assam17Mizoram 5Bihar18Nagaland 6Chhattisgarh19Odisha 7Gujarat20Rajasthan 8Himachal Pradesh21Sikkim 9Jammu & Kashmir22Tamil Nadu 10Jharkhand23Telengana 11Karnataka24Tripura 12Kerala25Uttar Pradesh 13Madhya Pradesh26Uttarakhand 27West Bengal