1. Workshop on Agriculture – Challenges, Possibilities & Solutions
Address by Chairman NABARD

2. Agriculture today - Challenges
Share of GDP from Agriculture declined over the years to reach 17 % but population dependent on it did not decline commensurately
increased marginalisation of holdings - less than 2 hectare holdings account for about 85 % of the operational holdings & 45 % area (Agricultural Census, ).
The average size of the holding declined from 1.33 ha in to in
loss of soil fertility and productivity capacity due to problems like salinity and erosion

3. Agriculture today - Challenges
Challenges in Water Conservation / Management
Farmers primarily face risks: a) Production, b) Market/Price, c) Input, d) Technology and e) Institutional risk
unfinished agenda in land reform
technology fatigue
Lack of opportunities for assured and remunerative price
Climate Change and extreme weather events

4. Total Foodgrain Production in the country

5. Ground Level Credit flow to Agriculture (2000-01 to 2016-17)
Impressive growth in flow of Agri-GLC (CAGR of 19.95% p.a.)
Foodgrain production – CAGR – 2.06% (197 mt in to 273 mt in )
(₹ Lakh Crore)
* – Provisional, as on 28 Feb Source: Ensure Portal of NABARD

6. Share of various Agencies in Total Agri. GLC ( Rs. crore)
Year
Comm. Banks
RRBs
Coop Banks
Total GLC
Amt
% to total
604376
71.5
102483
12.1
138469
16.4
845328
(P)
642954
70.2
119261
13.0
153295
16.8
915510
(P)*
799781
75.0
123216
11.5
142758
13.5
Overall share – CB’s showing increase (up from 54% in to 75% in )
Cooperative Banks share showing steep decline from 40% to 13.5% in (same period)
RRBs improving from 7% to 11.5 % in (same period)

7. Institutional Outreach (No. of branches)
Agency
Rural
Semi Urban
Urban
Metro
Total
RRB
14862
4710
1595
426
21593
StCB
349
191
366
224
1130
DCCB
7727
3511
2362
365
13965
SCB
33951
33861
25225
29218
122255
56889
42273
29548
30233
158943

8. Ground Level Credit Flow to Agriculture – Share of SMF
Yr .
Agency
No of accounts (crore)
Loan disbursed (Rs. crore)
Avg loan amt of SMF(Rs.)
Total
SMF
Share of SMF (%)
(P)#
Com. Banks
6.64
4.82
72.64
7,99,781
3,62,675
45.35
75244
Coop. Banks
2.69
1.90
70.53
1,42,758
89,178
62.47
46936
RRBs
1.37
0.99
72.26
1,23,216
82,496
66.95
83329
10.70
7.71
72.06
10,65,755
5,34,351
50.14
69306
Share of SMF loans in Commercial Bank- though improved in –should reach a level of 8 % of ANBC

9. Share of ST & LT Credit (% to total GLC)
Declining share of LT (showing recovery since onwards but yet to reach desired level)
Coops achieved 31% of LT Target in (13.5% share of total agri-credit)
RRBs achieved 61 % of LT target (11.5 % share of total agri-credit)
* Provisional

10. Regional Imbalance in Agri-credit
Regions
GLC share %
Share in GCA
North
21.85
20.11
N E R
0.82
2.83
East
8.15
14.65
Central
14.68
27.26
West
12.83
16.47
South
41.67
18.68
Southern states have a higher share of GLC (42 %) compared to their share in GCA (19 %)
Low share of East / Central / NER region in GLC

11. NABARD’s role in credit planning
NABARD prepares Potential Linked Credit Plans (PLPs) for all the districts in the country
PLPs form base for ACPs of Banks
NABARD has been preparing Area Development Schemes for boosting term lending and capital formation

12. Proportion of Agricultural HH indebted within each farm size class
Source: NSS survey results from 59th and 70th rounds.
* Small farm size coverage is less

13. Sources of income of farmers of different size classes

14. Way Forward Focus on long term credit to boost capital formation
Loans to SMF to be increased (CBs to reach 8% of ANBC by March 2017)
Regional imbalances - Special focus on Eastern, Central, Hilly States and NE needed.
To enhance Inclusion process – coverage of new farmers
Fragmented landholdings – Need for collectives of farmers
Promotion of JLGs as an alternative channel to enable tenants to get credit from Institutional sources.

15. Functions of NABARD
Providing leadership to Rural Financial System through:
Credit
Developmental
Supervisory
Other functions

16. NABARD’s Role in Rural Infrastructure DevelopmentNo
Major Sectors
Benefits 1
Irrigation Potential (lakh ha.)
291 2
Rural Roads Network (lakh kms)
4.28 3
Rural Bridges (lakh mt.)
10.37
As on 31 March 2017 (Cumulative)
RIDF Sanctions
Rs.2,87,129 cr
RIDF Disbursements -
Rs. 2,29,809 cr
43% to Agriculture & Irrigation

17. RIDF - Impact
Major Findings based on Independent Impact Studies (across 9 states)
Irrigation
Improvement in productivity of crops (20% -Assam to 175%- Odisha)
Changes in cropping pattern and more than 50% increase in cropping intensity.
Increase in employment opportunities (36% Odisha to 46% Gujarat)
Increase in irrigated area > 30%
Increased income for farmers (27% - WB to 60% - Odisha)
Rural Connectivity
Savings in Travel Time (30 min- HP to 1 to 5 hrs – Odisha)
Increase in Wage Rates (25% - HP to 57% - Karnataka)
Increase in access to Marketing Centres (30% - HP to 43 % - Karnataka)

18. Long Term Irrigation Fund (LTIF)
LTIF instituted and operationalised in
Funding of 99 identified incomplete irrigation projects in 18 states
Total financial requirement of Rs. 77,595 crore up to December 2019
Additional lakh ha area to be irrigated
Sanction - Rs. 49,889 crore
Disbursement - Rs. 9,086 crore

19. Union Budget 2017-18 : New initiatives by NABARD
Micro Irrigation Fund :
Corpus of Rs.5000 crore
Boost to adoption of micro irrigation measures like drip and sprinkler
Water use efficiency – per drop more crop – increase in productivity
Dairy Processing and Infrastructure Development Fund (DIDF) :
Rs.8000 crore over 3 years
Rejunevate Dairy sector
Additional milk processing capacity of 12.6 million litres per day
Computerisation of 63,000 PACS :
Rs.1900 crore over 3 yrs
Computerisation of all viable 63,000 PACS
Improved customer service and operational transparency for borrower-farmers
Facilitate financial inclusion

20. Major Initiatives for Inclusive Growth
Livelihood Initiatives
Watershed Development/ Tribal Development
SHG Bank Linkage / JLG Financing
Climate Change Initiatives
Farmers’ Collectives
Financial Inclusion Initiatives
Acceptance Infrastructure
Incentivizing Digital Transactions
Financial Literacy

21. Financial Inclusion Measures
Acceptance Infrastructure
Incentivizing Digital Transactions
CBS in Rural Co-op Banks ATMs
Micro ATMs – Banking
Touch Points
PoS/m-Pos in Villages
Connectivity Infra (V-SAT)
Central KYC Records Registry for Rural Banks
Financial Literacy
BHIM Aadhar Pay
Encouraging BHIM Usage: by Customers & Merchants
Digital Financial Literacy
Financial Literacy Centres
Financial Literacy in Schools
Mobile Demo Vans

22. Financial Inclusion Initiatives
Cloud-based CBS in Co-op Banks
RuPay KCC
PACS as DMA
microATM

23. Financial Inclusion Initiatives (contd.)
Solar powered VSAT
PoS/mPoS in 1 lakh villages
Financial Literacy Programme
Financial Literacy Centre

24. Rupay KCC Major benefits Farmers can withdraw from ATM/Micro ATM also
Can also use cards at the POS machines of merchants like fertilizer vendors etc
Can draw as per need – bringing down the interest burden
Progress
Agency
Total KCC live
Rupay KCC
Commercial Banks*
211 lakhs
Co-operative Banks
314 lakhs
103 lakhs
RRBs
101 lakhs
Total
626 lakhs
415 lakhs
* Data on CBs’ tentative

25. Producers’ Organisation (PO)
POs–Collectivisation of agriculture produce and linking farmers to market
Set up Producer Organisation Development Fund (PODF) during for providing credit plus support to POs
221 POs and 2592 PACS supported
2154 new FPOs formed under Produce Fund created by GOI
3000 more FPOs planned during
Support provided for capacity building, nurturing and handholding of FPOs.
NABKISAN Finance Ltd. (A NABARD Subsidiary) entrusted with task of extending credit support to POs across the country

26. Microfinance Sector: Overview
Current size of microfinance sector in India – Rs 1,20,000 Cr
Targets the ‘Bottom of the Pyramid’ segment for ensuring Financial Inclusion
Key models:
i) Led by MFIs
ii) Led by Banks viz. SHG & JLG
NABARD actively encouraging & supporting bank led models

27. SHG-BLP 86 lakh Savings-linked SHGs and 24 lakh JLGs by banks
NABARD support in form of refinance, promotional grant & capacity building
Cumulative Refinance to Banks- Rs 43,293 cr
NPAs in SHG advances- 6.45%
Per SHG loan - Rs.2.04 lakh.
Digitisation project piloted to overcome some of these constraints

28. eShakti- Objective and Impact
1.28 Lakh SHGs Digitised under the pilots
Standardization of accounting practices at SHG level
Transparency through SMS system
Credit history of members can be tracked– grading of SHGs
Transactional MIS available to banks at doorstep
Substantial jump in credit linkage observed in pilot districts
Opens possibility of convergence of SHGs with other Govt. Programmes

29. JLG approach to financing landless farmers
A large section of cultivators viz. share croppers, oral lessee, tenant farmers have no ownership records of the land and are unable to access credit from banking system
Dependent on private money lenders, input financer and output purchasers for their credit
JLG devised to address the credit needs of such farmers who have no collateral to offer
Several banks have adopted JLG approach to meet the credit needs of the hitherto excluded farmers

30. NABARD’s support for JLG promotion
NABARD enables JLG promotion by provision of need based grant support to partner agencies
Capacity building support to stakeholders including NGOs, banks, Govt. organisations and farmers is supported
NABARD provides 100% refinance to banks
NABARD is entering into MOU with RRBs for promotion and financing of JLGs on a larger scale

31. JLGs - Progress so far 24.12 120.6 26,990.36 Year
No. Of JLGs financed during the year (lakh)
No. Of farmers/ artisans covered
(lakh)
Amount disbursed (Rs.Cr.)
Up to March, 2014
6.82
34.1
4.56
22.8
5.72
28.6
7.02
35.1
Total
24.12
120.6
26,990.36

32. Tribal Development Programme - 31st March 2017
673 Tribal development projects sanctioned
Total Grant sanctioned Rs.2030 crore
Cumulative disbursement – Rs crore
Number of states covered – 27
No. of families covered – 5.04 lakh
Number of NGOs associated- 352
41 projects sanctioned under Corporate Social responsibility
16 Corporates associated with NABARD for Tribal Dev. Programme

33. Watershed Development Fund (WDF)
To develop rainfed/dryland areas through peoples’ participation, WDF set up in NABARD in with an initial corpus of Rs 200 crore
Total corpus of WDF stood at Rs crore
385 watershed projects, 120 KfW-Climate proofing projects, 42 WDF-Climate Proofing projects & 336 Sustainable Development Plans in 19 States
1275 watershed projects completed successfully.
Cumulative sanction and release stood at Rs 1853 crore and Rs crore
An area of lakh ha. covered

34. WDF - Impact
Significant increase in ground water level, surface water, irrigation intensity and cropping intensity
Reduction in soil loss, improvement in water regeneration capacity of soil, land use pattern, cropping pattern
Employment generation, income generation and livelihood generation including those of women and land less families

35. Water Conservation - Campaign
Water Campaign launched by involving villages in efficient water conservation practices
1,01,423 Villages in most vulnerable areas covered in 21 States
200 Master Trainers & 8000 Krishi Jal Doots trained to cover 250 districts
Village Level Programmes on awareness about technologies on water conservation and efficient utilization
Government Departments, Bank officials, corporates, KVKs etc., associated
De-briefings to capture outcomes and compilation of Village resource maps/ Action Plans for developing future strategy

36. Climate Change most important area of concern for India.
Significant negative impacts implied with medium-term ( ) climate change, predicted to reduce yields by 4.5 to 9 %, depending on magnitude & distribution of warming leading to loss of roughly 1.5 % of GDP per year.
Global warming likely to lead to loss of mt in milk production by 2020 and 15 mt by 2050
It may also affect fish breeding, migration, and harvests

37. Climate Change Projects - Snap-shot
Adaptation Fund
6 Projects (US$ 9.85 M)
6 states covered (AP, WB, MP, TN, Raj, UK)
Achieved 10 mn USD allocation (country cap)
Green Climate Fund
One DPR sanctioned USD million (Odisha)
4 Project approved by Empowered Committee – US$ 446 M approved by MoEF&CC
(2 MNRE, 1 Hyd. City, 1 Haryana)
37 Project Leads US$ 2614 M Generated
National Adaptation Fund for CC (GoI)
21 projects approved Rs Cr
4 PCNs under development Rs. 150 Cr (Bihar, Jharkhand, UP, Nagaland)
Aim to cover all the states under NAFCC in

38. Refinance to banks by NABARD
(Rs. Crore)
Particulars
LT Refinance
31427
48064
53506
ST - SAO
90004
70001
72883
Additional ST - SAO -
10581
ST(Others) & Weavers
147
1215
1510
Medium Term Conversion
485
2789

39. Interest Subvention
Interest Subvention of 2% to banks for providing crop loans at 7% upto Rs lakh
Incentive of prompt repayment of 3% to farmers
2 % subvention available to banks against NWRs issued on the produce stored in warehouses accredited with WDRA for SF/MF having KCC for upto 6 months
To provide relief to farmers affected by natural calamities an interest subvention of 2% available to banks for first year on restructured loan amount
Rs. crore
Year
IS released to Coop banks & RRBs
170.01
Funds awaited from GoI
Claims pending with GoI as on for banks and NABARD
All claims released
733.69

40. Natural Calamities – Revised guidelines
Relief to farmers distressed from crop damage due to natural calamities
Criteria of crop loss assessment revised from 50% to 33%
In case of wide spread damage, based on deliberations by State Govt/ SLBC/DCC relief provided on eye estimate/ visual impression , without insisting on Annewari
Interest subvention of 2% on first year on restructured loan
Eligible Institutions for MT(C) -RRBs and StCBs
Share in MT(C) is as under:
StCBs- NABARD -60% , State Govt.’s - 15% , StCBs/DCCBs - 25%.
RRBs- NABARD - 70% , Sponsor Banks - 25% , RRBs- 5%.
An amount of Rs cr. has been disbursed in

41. Govt. Sponsored Schemes(GSS) implemented by NABARD
ONGOING SCHEMES-
1. Agri-Clinics and Agri-Business Centres(ACABC) scheme. -to promote agri. Extension through agri zProfessionals.
2.National Project on Organic Farming (NPOF) –promote commercial production of organic inputs through bio- fertilizer/bio-pesticide, Fruit/vegetable compost units
3.Dairy Entrepreneurship Development Scheme (DEDS)
Encourage modern dairy farms, upgradation of technology etc.
Scheme was closed from 1 January 2015 to 30 April 2016.
Re-started from May-July 2016.

42. Govt. Sponsored Schemes(GSS) implemented by NABARD
ONGOING SCHEMES-
4.National Live Stock Mission Schemes (NLM) .
The following components are subsumed under the scheme w.e.f
(a) Poultry Venture Capital Fund(Subsidy) scheme - to encourage poultry farming activity, poultry dressing and marketing
(b) Pig Development Scheme- to encourage commercial pig rearing by farmers.
(c)Integrated Development of Small Ruminants and Rabbits-to encourage sheep/goat/rabbit rearing farmers to go for commercial rearing.
(d) Salvaging of Male Buffalo Calves - salvaging and rearing of male buffalo calves, buffalo meat export

43. Govt. Sponsored Schemes(GSS) implemented by NABARD
CLOSED SCHEMES
1. Agricultural Marketing Infrastructure (AMI) sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) (scheme is closed as on )-
Creation of 4000 marketing infrastructure projects and 230 lakh tonnes of scientific storage capacity
Was open for beneficiaries of SC/ST and all in NER upto 31/10/16 and others upto 5/8/2014.
2. Solar Photovoltaic pumping systems and MNRE Lighting Scheme 2016 ( scheme closed w.e.f )
Promote solar pumpsets upto 10 HP for replacing diesel pumpsets , reducing dependency on grid-power
Target of units of solar pumpsets.
Promote LED based solar home lighting systems (to reduce dependence on kerosene lamps)
Home lighting systems upto 300 Wp are eligible for subsidy

44. Government Sponsored Schemes
(Rs. Crore)
S.No.
Name of the Scheme
Cumulative as on 31st March 2017
No. of Units
Subsidy Released 1
ISAM- Agriculture Marketing Infrastructure
40992
3719.9 2
Agri Clinics and Agri Business Centres
1628
55.56 3
Solar Pumping
2833
81.32 4
Solar Lighting
657
11.59 5
National Project on Organic Farming
711
26.05 6
Dairy Entrepreneurship Development Scheme
269049 7
Poultry Venture Capital Fund Scheme
9666
179.85 8
Integrated Development of Small Ruminants and Rabbits
26800
106.8 9
Pig Development
8101
57.8 10
Salvaging of Male Buffalo Calves 35
0.24

45. Increasing Credit Flow to Agriculture
Increasing Capital Formation in Agriculture
Supplementing resources of banks for providing credit for investment activities.
Concessional Refinance to RRBs and Cooperatives through LTRCF
NABARD’s refinance increased from Rs cr. in to Rs cr.in with a CAGR of 32%
Long Term Ref
ST(SAO)
Supplementing resources of banks in increasing ground level credit
Refinance provided from STRCRC and STRRB funds at concessional rates
Additional Rs cr. allocated in under STCRC fund post-demonitisation.
Rs cr. disbursed in under ST(SAO)
Additional ST(SAO)
Introduced by NABARD in to address liquidity constraints of banks
Refinance is provided over and above normal ST(SAO) limit
Rs cr. has been disbursed under this line of credit

46. Increasing Credit Flow to Agriculture
Post Demonetization measure by GoI
Interest Waiver for 2 months for all short-term crop loans disbursed by Cooperative Banks from to
Rs Crores released by NABARD as on to StCBs in respect of interest waiver for 1.59 crore farmers
Interest Waiver
ST(Others and Weavers)
Provided for purposes other than those covered under ST(SAO)
Marketing of crops, Fisheries sector, Working Capital to Weavers Society etc are eligible activities for refinance
An amount of Rs.1509 cr. has been disbursed under this product in
Medium Term Conversion
Providing relief to farmers distressed from crop damage due to natural calamities
Provided to RRBs and StCBs and is available where the crop loss is 33% or more
An amount of Rs cr. has been disbursed in

47. Increasing Credit Flow to Agriculture
Providing hassle free credit to farmers
Innovative credit delivery mechanism to meet the production credit requirements of farmers
4.77 cr. operative KCCs issued by Cooperative Banks and RRBs as on
KCC
Interest Subvention
Interest Subvention of 2% to banks for providing crop loans at 7% upto Rs.3.00 lakh
Incentive of prompt repayment of 3% to farmers
Effective agriculture credit to farmers at 4%
Capital Investment Susidy Schemes
NABARD helps in formulating policy of GoI
Pass through agency for channelising subsidy
Cumulatively 3.60 lakh units have been assisted with a subsidy of Rs.5288 cr. as on 31 March 2017

48. Off-Farm initiatives by NABARD
Importance of off-farm activities :
Alternate/Supplementary livelihood option
Arresting large scale migration to urban centres
Critical for doubling of farmers’ income
NABARD initiatives :
Financial support for 639 Rural Marts and 409 Rural Haats
31022 Skill Development Programmes covering 8.02 lakh umemployed youths
Promoting Off Farm Producer Organisations
To promote 5 Agri Business Incubation Centres

49. Thank You