EXECUTIVE SUMMARY Dhule district, situated in the northern side of Maharashtra, has an area of 8063 sq.km and is comprised of 4 blocks viz. Dhule, Sakri, Shirpur and Shindkheda. It falls under drought prone area and the economy of the district is dependent upon agriculture, which is adversely affected due to drought conditions in successive period. The normal rainfall of the district is 592 mm and the climate is hot and dry. Agriculture is the predominant economic activity, followed by dairy, sheep/goat rearing, etc. The non-farm sector activities consist of small units in agro-processing i.e. oil mills, dal mills, etc. Major food crops grown in the district are Jowar, Bajra, Maize, Wheat, Groundnut, Cotton and Sugarcane. Among horticultural crops, Ber, Guava, Pomegranate, Custard Apple and Mango are the main crops. Maharashtra State Government has decided to launch Human Development Mission in two blocks viz. Sakri and Shirpur with a view to raising Human Development Index to the advantage of people in general and rural population is particular. During the last decade, a number of technological and management tools have facilitated the farmers' involvement in an effective manner. The PLP- 2016-17 has projected a potential of ` 239038.36 lakh for bank credit for agriculture and non-farm sectors and other priority sectors in Dhule district. The plan envisages an overall growth of 18.5% over the PLP for 2015-16. Agricultural Strategy for Twelth Plan An agricultural growth target of 4 % p.a. is envisaged during the XII plan period. In the XII Plan period growth rate of at least 2 % p.a. in food grain production has to be achieved. The main factors expected to contribute to 4 % growth in the XII Plan are increased investment (2.5 %) and higher area under fruits and vegetables (1.0 %) with greater use of fertilizers and other inputs contributing the rest. Agricultural Extension is the key element for narrowing down knowledge gaps that exists in agriculture. Implementation of KCC Scheme During the year 2014-15,2000 KCCs were issued in the district by banks taking the cumulative total of KCCs issued to 2.08 lakh. The banks have to ensure that the implementation of the scheme is stepped up in qualitative manner and make efforts to increase the flow of agricultural credit through KCCs during 2016-17. Sub Sectorwise analysis for the year 2016-17 The Sector/ Sub-sector-wise projections for the year 2016-17 are furnished in Annexure-I. Agricultural Farm Credit 3.1 Crop Production, Maintenance And Marketing : In the base PLP prepared for the year 2016-17, the requirement of crop loan was assessed to the tune of `1082.96crore. The area under cotton has been estimated at 1.73 lakh ha as against the 1.52 lakh ha estimated in the base PLP. 3.1.2 Water Resources : Minor Irrigation is the major thrust area. The total area under irrigation is only 19% of the area under cultivation. The ultimate irrigation potential for the district is 4.68 lakh ha. There is need to increase investments in various activities such as drip/ sprinkler irrigation, small LIS, deepening of wells, energisation of pump sets, etc. Projection of ` 71.30 crore has been estimated for MI activities with a small revision over the earlier projection. 3.1.3 Farm Mechanization : F.M. is an important sector as it leads to increased crop production and land productivity, minimising cost, increasing income, etc. Post harvest machineries help in reduction in loss during harvest. This would in turn facilitate commercialization of agriculture. The activities considered for financing under farm mechanization sector include tractor, power tiller, combine harvester, agricultural implements, etc. Estimated projections for the sector is retained at `77.13 crore, as worked out earlier.

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3.1.4 Plantation and Horticulture (including Sericulture) : Plantation and Horticulture can act as a source for diversification in agriculture. However, the district has registered slow progress under the sector. There is need to promote use of shade net, floriculture and concerned Department should coordinate with banks for linking non subsidy portion with credit for various schemes under NHM, NHB and Agriculture Department. Projection of ` 21.66crore has been estimated for the sector with a small revision over the earlier projection. 3.1.5 Forestry and Waste Land Development : The forest in the district is spread over 2,08,890 hectares which is 24% of the geographical area as compared to 20% in the state. Teak, bamboo, mahua, palash, etc. are the major common forest plants in the district. PLP projection for the sector is `3.13 crore . 3.1.6 Animal Husbandry - Dairy Development : Dairy is well suited to seasonally employed farmers in Dhule district. It facilitates the effective utilization of agriculture by-products. The milk production of the district is 1523.936 lakh kg and per capita availability of the milk in the district stands at 206 gms per day, much lower than the desired requirement of 250 gms. Estimated projection of ` 91.27 crore has been arrived at for the sector with slight revision over the earlier projection. 3.1.7 Animal Husbandry - Poultry Development : Poultry farming is one of the important allied activities under AH Sector as good demand exists for eggs and poultry meat. The demand of the district is met mainly by inflow from other districts in the State. The climate in the district is fairly suitable for poultry activities. However, poultry activity at present is on low profile. PLP projection for Poultry is estimated as ` 9.95 crore,. 3.1.8 Animal Husbandry - Sheep, Goat and Piggery Development :Rearing of small animals particularly goats is popular among the rural poor in the district. The agro-climatic conditions are conducive for these activities. Goatery is popular among the members of SHGs. Sheep rearing and piggery activities are on a low profile. For this sector, estimated projection is ` 73.53 crore,. 3.1.9 Fisheries Development : The fish production in the district was 1910 MT during 2014-15,. Village ponds, inland saline areas, water-logged areas, reservoirs, irrigation tanks and rivers etc are the potential sources of inland fisheries. Estimated projections for the sector is retained at` 0.60 crore, as worked out earlier. 3..1.10 Others Activities :Under this sector, bullocks, bullock carts, are the main activities. There is huge requirement of bullocks and bullock carts in the district for which more and more people need to be covered under the Govt. Scheme for the purpose. Projection of ` 14.40 crore. 3.2 Agriculture Infrastructure 3.2.1 Construction of storage facilities: Farmers have to dispose off their produce at an unremunerative price, immediately after the harvest. Creation of storage facilities, through construction of grain godowns in villages will remedy this situation. Estimated PLP projection for the sector is retained at `48.00 crore,. 3.2.3 Land Development Soil Conservation: Implementation of watershed projects is a major activity in the district undertaken by various agencies. NABARD supported 17 Watershed projects covering 17 villages with treatment of total 16966 ha under NHWDP Phase-I & II. Banks may finance various activities in the completed watershed project areas. For land development, estimated projection is ` 21.28 crore. 3.2.3 Others : In this sector, bio pesticides/fertilizers, vermi composting units have been taken as infrastructural needs of the farmers and projections of ` 18.42 crore has been assessed . 3.3 Ancillary Activities 3.3.1 Food and Agro Processing: Major Crops Cultivated in Kharif season are jowar, bajra, maize, green gram, black gram, tur, soyabean, sesamum, groundnut

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and cash crops like cotton and sugarcane, where as in rabi major crops cultivated are wheat, gram, jowar, safflower and in summer season groundnut and bajra are cultivated. Major fruit cultivation in the district are of ber, custard apple, aonla, lemon, pomegranate, mango, guava, papaya and banana. Estimated potential of ` 82.85 crore. 3.3.2 Others : Loans to cooperatives societies , Agro-clinic and agri business and marketing federation have been assessed at ` 6.15 crore 4 (i) MSME: Agricultural sector is, by itself, not capable of creating additional opportunities of gainful employment in the wake of increasing population. Rural Non-farm Sector activities provide opportunities for income generation utilizing local raw materials; local skills labour and require low investments. The district is industrially backward. Estimated potential of `252.08 crore is estimated which includes ` 130.04 crore for investment purpose, ` 122.04 crore for working capital requirement. 5. Potential for export credit : In view of the two farmers' producers companies , the estimates has been done for the sector and assessment of `20.00 crore . 6 Credit Potential for Education: GOI has expressed a strong commitment towards education for all of its citizens, hence a projection of ` 80.00 crore is assessed for the year 2016-17. 7 Housing : Housing for all by 2022, hence the demands of houseless households have

been assessed and projections of ` 216.00 crore has been made.

8 Credit Potential for Renewable Energy: ` 2.61 crore projection has been assessed .9 Credit potential for others : Financing of SHGs has been increasingly accepted as a cost-effective mechanism for expanding outreach of banks to the poor and adding quality to the loan portfolio of their branches. In view of the implementation of PMJDY, and the

Overdraft facility offered, a projections of ` 16.00 crore has been done.

Total No. of Rural

Household in the

district

Total No. of

JLG/SHGs

Present position of SHGs and JLGs as on 31 March 2015

Balance potential for SHGs and JLGs

No. of SHGs /JLGs

Saving linked

Credit linked

Balance

1 2 3 4 5 6 (2-3)

2.52 lakh 16827 12446 12446 7994 4381

10.2 Infrastructural Support involving Bank credit : Social Infrastructure is a subset of the infrastructure sector and typically includes assets that accommodate social services. Social Infrastructure Assets include schools, universities, hospitals, Water and waste water treatment water and sanitation facilities, community housing, etc. Social infrastructure refers to those factors which render the human resources of a nation suitable for productive

work. The projection of `17.04 crore have been assessed. 11. Informal Credit: In view of the WSHG district and Eshakti project, being implemented

in the district, the assessment of ` 112.00 core has been done. Under WSHG, the district has 100% recovery of loans. 12. Area Based scheme: Area based scheme on vermi composting has been identified for implementation. Sector /subsector wise projections for 2016-17. (` in crore)

Broad Sectorwise Proejctions 2016-17

Sr. No.

Sector PLP Projections 2016-17

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I Credit Potential for Agriculture

A Farm Credit

i Farm Credit 1082.96

ii Water Resources 71.30

iii Farm Mechanisation 77.13

iv Plantation & Horticulture 21.66

v Forestry & Waste Land Development 3.13

vi Animal Husbandry- dairy 91.28

vii Poultry 9.95

viii Sheep / Goat / Piggery 73.53

ix Fisheries 0.60

x Others 14.40

Sub Total 1445.95

B Agriculture Infrastructure

i Construction of Storage facilities(warehouse, market yards, Godowns, silos, Cold storage units/cold storage chains

48.00

ii Land development, Soil conservation, Watershed development 21.28

iii Others (Tissue culture, Agri Bio technology, Seed production, Bio pesticides/ fertilizers, Vermi composting)

18.42

Sub total 87.70

C Ancillary activities

i Food and Agro Processing 82.85

ii Others ( Loans to cooperative societies of farmers for disposing their produce, Agri clinics/Agri Business centers, Loans to PACS/FSS/LAMPS/Loans to MFI for on lending

6.15

Sub total 89.00

Total Agriculture 1670.68

II Micro, Small and Medium Enterprises

i) MSME – Investment credit 130.04

ii) MSME – Working capital 122.04

Total MSME 252.08

III Export Credit 20.00

IV Education 80.00

V Housing 216.00

VI Renewable Energy 2.61

VII Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to state sponsored organizations for SC/ST)

132.00

VIII Social Infrastructure involving bank credit 17.04

Total Priority Sector 2390.38

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Broad Sectorwise PLP projections for the year 2016-17 STATE - MAHARASHTRA DISTRICT - DHULE (` in lakh)

Sr. No.

Sector Financial Projections

A Farm Credit i Crop production, maintenance and marketing 108296.25

ii Term Loan for agriculture and allied activities 36298.92

Sub total 144595.17

B Agriculture Infrastructure 8770.32

C Ancillary activities 8900.18

I Credit Potential for Agriculture (A+ B+C) 167065.67

II Micro and Small and Medium Enterprises 25208.00

III Export Credit 2000.00

IV Education 8000.00

V Housing 21600.00

VI Renewable Energy 260.69

VII Others 13200.00

VIII Social Infrastructure involving bank Credit 1704.00

Total Priority Sector ( I to VIII) 239038.36

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