SFP 2016-17 Tamil Nadu

Executive Summary A Introduction

Tamil Nadu with a geographical area of 1,30,331 sq km is the eleventh largest State in the country and occupies 4 per cent of the total area. The State has been divided into seven agro climatic zones. Tamil Nadu consists of 32 districts, 385 blocks and 16,671 revenue villages. Tamil Nadu is the sixth most Populace State with a density of 555 persons per sq. km (national average of 382). Of the total population of 7.21 crore, the male population is 3.61 crore and female population is 3.60 crore. The rural population forms 51.6% of total population and urban population forms 48.4%. The literacy rate in the State is 80.09 per cent, with male literacy being 86.8 per cent and female literacy 73.1 per cent (Statistical Data Tamil Nadu). The agricultural labourers formed 29.2% of the total workers. Of the total workforce of the State, as per the 2011 census, 42.48 lakh are cultivators, agricultural labourers 96.07 lakh, and workers engaged in household industries 13.65 lakh. Total number of operational holdings in the State was 81.18 lakh, marginal and small holdings were 11.81 lakh and 62.66 lakh constituting 77 per cent and 15 per cent respectively. The average size of operational land holdings was 0.80 ha, which is much lower than the national average of 1.2 ha. B Banking Scenario The banking network in the State, as on 31 March 2015, comprised of 45 Commercial Banks, 2 RRBs and Tamil Nadu State Apex Cooperative Bank (TNStCB) with 23 affiliated District Central Cooperative Banks (DCCBs). Indian Overseas Bank is the Convenor of the State Level Bankers’ Committee in the State. Banking services in the State are provided through a network of 10326 branches, of which 6619 branches comprised rural/semi urban branches.

a. The CD ratio, of Commercial Banks in the State was 119.95%, RRBs was 108.15% as on 31 March, 2015 and that of Cooperative Banks was 108.77%, as against the national norm of 60%. b. Kancheepuram district has CD ratio of 53% which is less than the norm of 60%. The CD ratio of Ariyalur, Dharmapuri and Theni was very high at 205.8%, 200.1% and 198.2% respectively. c. The growth under Deposits was 7 % during 2014-15, as compared to 15 % during 2013-14. d. Loans and advances issued witnessed a growth rate of 7 % during 2014-15 as compared to 13 % during 2013-14. e. As against the target, for the year 2014-15, Rs.121900.66 crore under the Annual Credit Plan, an amount of Rs.126544.70 crore was disbursed for various sectors, recording an achievement of 104 per cent. f. Banks disbursed Rs.81630.34 crore to the agriculture sector against the target of Rs. 77513.57 crore (105 percent achievement), showing a marginal decline in percentage achievement as compared to an achievement of 108 per cent of the target during 2013-14. g. Declining achievement in lending to agriculture is a matter of concern. The NPAs under agriculture loans has gone up in absolute term, from Rs. 3073.92 crore as on 31 March 2014 to Rs. 4375.06 crore as on 31 March 2015. As percentage from 2.86 % to 3.63%. h. The overall priority sector NPAs has been on the increasing trend over the last three years in absolute figures. It increased from Rs 8802 crore (31.03.2013), to Rs 9200 crore (31.03.2014) to Rs 14241 crore (31.03.2015)

As per the estimates for 2013-14, the share of primary, secondary and tertiary sectors in

SFP 2016-17 Tamil Nadu

the GSDP of the State was 12.7%, 25.5% and 61.8%, respectively at current prices. The Net State Domestic Product at current prices for the last 3 years was as in table 1, below

Table 1 Growth under various Sectors in State Economy

(Rs. Lakh) Year Primary Secondary Tertiary Total

2011-12((RE)

8714453 16580055 34990605 60285113

2012-13 (QE)

8452931 18156542 40563302 67172775

2013-14 (AE)

9772233 19677991 47725985 77176209

RE: Revised Estimates, QE: Quick Estimates, AE: Advance Estimates It may be seen from the above that all the three sectors have shown increasing trend, during the 3 years under review. The per capita income was Rs.89,050/-, Rs.98,628/- and Rs.1,12,664/- during 2011-12, 2012-13 and 2013-14 respectively. The contribution of Agriculture to GSDP was 14% in 2011-12 but fell to 12% in 2012-13 & 2013-14 as may be seen from Table 1.2 below:

Table 2 Trends in contribution of Agriculture Sector to GSDP (Rs in lakh)

Year GSDP Primary Sector Agriculture % of Agri to GSDP

2011-12 RE 60285113 8714453 8379034 14 2012-13 QE 67172775 8452931 8099387 12 2013-14 AE 77176209 9772233 9358657 12

RE- Revised Estimates, QE- Quick Estimates, Source: Department of Economics and Statistics, Chennai

C Vision 2023 of State Government The Government of Tamil Nadu had released the Vision-2023 document setting a target of attracting investments to the tune of Rs 15 lakh crore. To give further fillip to industrial growth by attracting greater investments, Tamil Nadu Government unveiled a new industrial policy, an exclusive policy for automobile sector and the phase-II Vision 2023 document. Also witnessed signing of 16 MoUs between MNCs and the state envisaging a total investment of Rs 5,081 crore. D Sectoral Trend The ground level credit flow during 2012-13, 2013-14 and 2014-15 was Rs. 86907 crore, Rs 109270 crore and Rs 126545 crore respectively, thus registering an increase of 42% and 15 % during the last two years. During 2014-15, under agriculture, the crop loan witnessed an increase of 11% while agriculture term loan registered an increase of 42% over previous year. The disbursement under MSE and OPS sector registered an increase of 18 % and 17 % respectively. The State Focus Paper envisages the credit potential for 2016-17 at Rs.171154.73 crore, out of which the share of Agriculture Credit, MSME, and other priority sector has been estimated at Rs.109385.56 crore , Rs 31592.32 crore and Rs.30176.85 crore respectively. The credit projection for 2016-17 marks an increase of 18% over the same at Rs. 144435.55 crore, earlier estimated for the current year (2015-16).

SFP 2016-17 Tamil Nadu

E Weavers Credit Cards (WCC) – Target for 2015-16 Ministry of Textiles, Government of India fixes yearly targets for issue of Weavers Credit Cards. Accordingly, GoI has fixed target for issuance of 25000 WCCs during 2015-16 for the State of Tamil Nadu. Against the target, the issuance of WCCs, State has achieved 20829 WCCS as on 31.10.2015. (Source: Director of Handlooms, GoTN). F Rural Infrastructure NABARD has sanctioned an amount of Rs.1880.87 crore under RIDF towards irrigation projects which includes check dams, flood protection, soil conservation, ooranies, etc. and disbursed Rs.1675.89 crore as on 31 March 2015. The State Government initially availed RIDF assistance for development of roads, bridges and irrigation infrastructure, later on diversifying to other areas, especially power sector, social sector covering augmentation of drinking water sources and health and education (High Schools and Higher Secondary Schools) in accordance with the changing policies and priorities of the State Government. The rural connectivity sector continues to get a relatively bigger share under RIDF disbursements. The share of disbursement under roads and bridges sector is 47.50% followed by social sectors (24.57%), Irrigation 17.79%, agriculture & allied sector (including warehousing) (8.81%) and others (1.33%) as on 31 March 2015. The share of road and bridge sector, which was accounting for more than 98% of the sanctions made upto RIDF VI has now reduced to 47.50% of total sanctions made under RIDF in the State of Tamil Nadu upto Tranche XX (as on 31 March 2015) due to diversification of eligible activities under RIDF. G. Financial Inclusion In Tamil Nadu under financial inclusion, all the 4445 villages having population over 2000 allotted by SLBC among its member banks were covered with banking facility by 31 March 2012. Further, all the 7816 villages having population < 2000 identified for coverage by banks have been reported to be covered by banking outlets as on date. 8699 BCs have been appointed by banks in the state of which 8038 have been appointed by Commercial banks and 661 by RRBs. H SHG Bank Linkage Programme The SHG BLP movement which started as a link between the “unbankable” rural poor and the formal banking system to cater to the microcredit needs of the poor, now boasts of very high group savings and from a very miniscule proportion of total bank credit to a credit outstanding of Rs.6217.55 crores in Tamil Nadu [ as on 31.03.2015 ]. With nearly 99% of these being all women groups, there have been numerous success stories of the poor SHG members showing exemplary entrepreneurial qualities to come out of the vicious circle of poverty and indebtedness with the help of SHGs. This incredible success story of SHG-BLP has shaken the age old perception that poor are “not bankable”. Even internationally, Indian experience of SHG-BLP has been recognised as the largest and most successful microcredit initiative in the world. Tamil Nadu is one of the fore runner States in India, in SHG-Bank Linkage Programme, with 9.87 lakh SHGs savings linked covering 100.00 lakh households as on 31 March 2015. Bankers along with proactive support from NGOs and Tamil Nadu Corporation for Development of Women [TNCDW] had provided adequate credit to the SHGs in ensuring the success of SHG - BLP. During 2014-15, 2,41,953 SHGs (159122 SHGs in rural and 82831 SHGs in urban areas) have been credit linked with a bank loan of Rs.6171.74 crore (Rs.3969.42 cr. for rural SHGs and Rs.2202.32 cr. for urban SHGs ) in Tamil Nadu. With

SFP 2016-17 Tamil Nadu

this the total number of credit linked SHGs in Tamil Nadu stood at 6,07,622, of which 4.23 lakh are rural groups and 1.84 lakh are urban groups. The average loan per SHG stood at Rs.2.55 lakh which is more than the All India average loan per SHG at Rs.1.70 lakh. EShakti project envisages mapping of the existing SHGs in the district (bank wise, branch wise) for capturing the detailed financial and non financial information about the SHG and its members and uploading them through customised software. The digital data is being hosted on a dedicated website viz., www.eshakti.nabard.org and generates a host of MIS. SHG members themselves can upload the latest data directly by using a simple Android based App loaded on a hand held device (Tablet / Mobile) with GPRS support. This is in tune with the GOI’s mission for creating a digital India. To begin with, two districts viz., Ramgarh (Jharkhand) and Dhule (Maharashtra) were covered on pilot mode. On successful completion of the pilot project it has now been decided to extend the project to 25 districts in the 2nd phase. Dharmapuri district in Tamil Nadu have been identified for implementation of EShakti project. NABARD has introduced Livelihood and Enterprise Development Programme (LEDP) for creating sustainable livelihoods amongst SHG members on pilot basis. In Tamil Nadu Cuddalore, Pudukottai and Kanyakumari districts have been identified for implementation of pilot. Efforts are on to ground the scheme before the end of 2015-16. I Pradhan Mantri Jan Dhan Yojana Pradhan Mantri Jan Dhan Yojana (PMJDY) which was launched in August 2014 with the idea of Inclusive growth and providing universal access to banking services to all the households in the rural and urban area has stepped into its second phase of implementation. After the very encouraging first phase of the PMJDY during which 77.56 lakh bank accounts were opened and 71.34 lakh Rupay Cards were issued as on 31 December 2015 in Tamil Nadu, the scheme had now progressed to its next phase. The second phase of the PMJDY which includes various financial products like credit, micro pension and insurance is being implemented in the state through various schemes like sanction of OD limit and Universal Social Security Schemes

J mKCC A pilot project on mobile enabled Kisan credit card was sanctioned by NABARD to Pallavan Grama Bank and was launched on 2nd October 2011. Grant assistance amounting to Rs 37.33 lakh has so far been extended by NABARD for the project. The project enables cashless transactions between KCC accounts of farmers with the agriculture input dealers using their mobile phones which is linked to their individual accounts. It also allows withdrawal of cash from BC outlets. Using the m-KCC platform, mobile recharge, DTH recharge, mobile fund transfer facilities have been introduced as add-on services to the farming community and others. As on 31.12.2015, 10208 farmers and 4016 merchants have been registered of which 5055 farmers are active. 6079 cashless transactions involving an amount of Rs 351.20 lakh have been done by the farmers. K National Rural Livelihood Mission (NRLM) Driven by the great leap exhibited by the SHG-BLP in the last over two decades, most of their poverty alleviation programmes are dovetailed to the SHG mode of financing with suitable incentives. The National Rural Livelihood Mission (NRLM), a programme of GoI, is implemented in Tamil Nadu as TNSRLM by Tamil Nadu Corporation for Development of Women [TNCDW]. TNSRLM envisages creation of sustainable livelihoods of the rural poor living below the poverty line within a period of 5 to 7 years in the 31 rural districts of Tamil Nadu. Under the programme Village Poverty Reduction Committees are established which is an independent body of the target poor. Under this programme State Government had fixed a financial target of Rs.6000.00 cr. for linking 244605 SHGs during the current

SFP 2016-17 Tamil Nadu

year i.e. 2015-16. Against which as on 30 September 2015, 110430 SHGs have been credit linked to the tune of Rs. 2672.00 cr. L Joint Liability Groups Joint Liability Groups are informal groups of 4-10 members who are engaged in similar economic activities like crop production and who are willing to jointly undertake to repay the loans taken by the Groups from the Banks. During the year 2014-15, 37443 JLGs have been formed and credit linked by various banks with a loan amount of Rs.58181.82 lakh. As on 31 March 2015, 154138 JLGs were extended bank loan to the tune of Rs.254808.10 lakh. While Cooperative banks were the pioneers in providing credit to JLGs in the State, there has been an encouraging response from a few commercial banks. However, much needs to be done by the banks to increase the credit flow to this sector. Banks need to initiate urgent measures towards enhancing the pace of JLG financing. M Producer Organisation In Tamil Nadu, 09 POPIs were involved for promotion of 110 Farmers Producer Companies (FPCs) during 2014-15 and another 14 POPIs for promotion of 50 FPCs during 2015-16. Cumulatively, 23 POPIs will be involved under the programme for promotion of 150 FPCs in the state over a period of 3 years with a total grant assistance of Rs 13.77 crore. In order to strengthen the core team of the POPIs for promoting sustainable FPCs, 05-day training programmes were conducted by NABARD. A State Level Consultative Committee (SLCC) has been constituted to review the overall progress under the programme and for recommending suggestions for improvements in implementation of the programme. N Area Based Schemes GoI attaches more importance to capital formation in agriculture and emphasis that atleast 35% of the credit should be purveyed to agriculture term loans. Keeping in view this, NABARD has prepared area development schemes /area based schemes for each district and incorporated the same in the Potential Linked Credit Plans of the districts covering mainly activities such as Dairy, Poultry/sheep/goat, Plantation & Horticulture, Floriculture, Micro Irrigation and Sericulture. Tamil Nadu Regional Office has formulated Area Development Scheme for Pomegranate, Sheep& Goat Rearing, Floriculture and Sericulture. The implementation of area based development scheme would help the banks to provide the twin objective of providing livelihood opportunity and capital formation. The schemes are designed based on the potential available in the district for a specific activity. Details of district-wise area based schemes identified in various districts are discussed in Chapter VI. O Critical Infrastructure Critical infrastructure is defined as that infrastructure, which if created, will support increased credit flow under agriculture and benefit a large number of people. The district wise critical infrastructure requirement identified under various sector to be taken up during 2016-17 is projected at Rs.1436.10 crore. The sector covered include Agriculture, Land Development, Water Resources, Storage Godowns, Plantation & Horticulture, Animal Husbandry, Rural Connectivity and Fishing Harbour. The issues, constrains and suggestion action points are discussed in detail in chapter 5. P Potential Estimates for 2016-17 and Major Sectoral Analysis The Potential Credit Outlay for priority sector for the State as a whole for 2016-17 has been estimated at Rs. 171154.73 crore, which is an increase of 18% over the SFP projections of the previous year. There is 15% growth in PLP 2016-17 estimates vis-a-vis Base PLP projections of Rs.149231.37 crore for 2016-17. The increase is on account of factors like GoI policies and priorities, cost escalation, revision in unit costs of various investment activities, change in priority sector lending guidelines, Scale of Finance (SOF) for lending

SFP 2016-17 Tamil Nadu

under crop loans and infrastructural changes at the district level so that the realistic costs are adopted for arriving at the exploitable potential both in physical and financial terms. i) Crop Production, Maintenance and Marketing The projections for 2016-17 under crop loan has been estimated at Rs.68934.45 crore. The ground level credit flow to this sector was Rs 67400.64 crore during 2014-15 as against the target of Rs 53456.45 crore, an achievement of 126 %.

Crop insurance

Government of India, has recently launched a new Crop Insurance Scheme called the Pradhan Mantri Fasil Yojana(PM Crop Insurance) with effect from Kharif 2016, replacing the existing Crop Insurance. The Scheme has a provision for compensation to insured farmers if they have to skip sowing due to natural calamities like flood, unseasonal rains, hailstorms or cyclones.

Some of the issues need to be addressed under Crop Production are:

a. Rejuvenation of soil health to increase the productivity b. Conjunctive use of water c. Investment for increased capacity utilization of agriculture infrastructure d. Adoption of latest technologies of Rainfed cultivation e. Bringing in maximum efficiency in use of water and avoiding wastage.

Suggested action points a. As per the latest RBI policy on Priority Sector Lending, the target for direct lending to

small and marginal farmers has been increased to 7 percent for 2015-16 and to 8 percent for 2016-17. Hence, banks may finance more loans to the SF/MF.

b. Banks may implement the revised KCC in letter and spirit and increase disbursements as ‘pure crop loans’. Banks may issue crop loans as per revised KCC guidelines with Rupay Credit Card. All KCCs need to compulsorily covered under PAIS

c. Functional consolidation of producers / farmers for realizing the benefits of economies of scale in production and collective marketing

d. Farmers clubs approved by NABARD may be utilized by departments for implementing / popularizing various programmes / schemes.

ii) Water Resources The projections for 2016-17 under water resources has been estimated at Rs.3086.38 crore. The ground level credit flow to this sector was Rs.1289.41 crore during 2014-15 as against a target of Rs 3232.16 crore, the achievement being 40%. The issues that need to be looked into are as follows:

a. Groundwater, though part of hydrological cycle and a community resource, is still perceived as an individual property and is exploited inequitably and without any consideration to its sustainability leading to its over-exploitation in several areas.

b. The existing water resource infrastructure is not being maintained properly resulting in under-utilization of available resources.

c. Natural water bodies and drainage channels are being encroached upon and diverted for other purposes.

d. Reliability of electric power supply for irrigation pump sets - grid separation; duration of power supply, and quality of power, are the main constraints in energisation of pumpsets.

Suggested Action Points

a. Water saving techniques such as Drip & Sprinkler systems to be encouraged, further by giving wide publicity with subsidy, budgetary allocation, field demonstration and ensure

SFP 2016-17 Tamil Nadu

prompt after sales service. b. Farmers may be encouraged to opt for alternative cropping pattern which will consume

less water and also go in for artificial recharge structures in their fields. c. Groundwater recharge structures such as construction of percolation tanks, check

dams, recharge shafts, sub-surface dykes, weirs etc., may be taken up in new watershed areas.

d. Necessary assistance in identifying sites for wells, design of MI structures & adoption of geophysical techniques to be provided by Ground Water wing of WRO of PWD and AED. The PWD (WRO) may consider taking up revision of groundwater assessment based on basin-wise studies to identify the potential pockets available within the critical areas, for further development.

e. Encroachments and diversion of water bodies (like rivers, lakes, tanks, ponds, etc.) and drainage channels (irrigated area as well as urban area drainage) must not be allowed, and wherever it has taken place, it should be restored to the extent feasible.

f. Construction of recharge wells may be made compulsory while financing the augmentation of ground water related activities to the farmers and to the beneficiary availing subsidy under various water resources/conservation related schemes. In over exploited, critical areas and semi critical blocks, this may be taken up under MGNREGS.

g. Use of very small local level water conservation structures such as small bunds, farm ponds, and other agricultural and engineering methods and practices for soil and water conservation, etc, need to be encouraged.

h. Intensification of irrigated area development and water management schemes.

iii) Farm Mechanization

The projections for 2016-17 under Farm Mechanization has been estimated at Rs.7416.80 crore. The ground level credit flow to this sector was Rs 1280.38 crore during 2014-15 against the target of Rs 4160.32 crore, i.e 31 % achievement. The following are the constraints.

a. Lack of awareness in technology dissemination in respect of use of new farm machineries viz., rotavators, laser levellor, power weeders, power threshers among the farmers.

b. Making available extension services by the respective line departments.

Suggested Action Points

a. Creating awareness about the schemes of Agri. Engineering Department is very much needed to take the benefits to farmers for improving mechanisation in all the districts.

b. Farmer Producer Groups/Farmers Clubs/Federation of Farmers Clubs/Farmers c. Interest Groups of line departments may be encouraged to purchase and use

agri.machinery/implements for improving custom hiring of farm implements to farmers at affordable rates.

d. Banks may extend credit support to farmers and groups of farmers for purchase of agriculture implements/machinery under the above schemes of the government.

e. Banks may explore financing of ago-service center to group of rural youth as these agro-service centers with tractors and other farm machineries will cater to the need of nearby area on custom hiring basis.

f. Banks may consider financing for replacement of tractors, power tillers, agri implements and for financing second hand tractors.

g. Banks may encourage setting up of Agri Business Centres by unemployed agriculture graduates to cater to servicing and hiring of tractors, power tillers etc.

h. Banks may encourage financing for small/affordable farm implements apart from tractors/tillers, combine harvesters etc. to overcome shortage of labour and increase productivity.

SFP 2016-17 Tamil Nadu

iv) Plantation and Horticulture

The aggregate credit potential for 2016-17 for Plantation and Horticulture has been assessed at Rs 5933.34 crore. The ground level credit flow to this sector was Rs 2645.78 crore during 2014-15 against the target of Rs 3055.16 crore. The constraints being faced in this sector are given below:

a. Strengthening of market infrastructure with cold chains b. Augmenting supply of Institutional Credit c. Capacity Building of horticulture farmers and entrepreneurs.

Suggested Action Points

a. Arrangements for timely supply of quality inputs including planting materials and seeds.

b. Capacity Building of horticulture farmers and entrepreneurs. c. Augmenting supply of Institutional Credit. d. Strengthening of market infrastructure with cold chain facilities. e. Promotion of Contract Farming. f. Strengthening and Monitoring of existing AEZs. g. Processing and Value Addition.

v) Forestry and Wasteland Development

The aggregate credit potential for 2016-17 for Forestry sector has been assessed at Rs 653.47 crore. The ground level credit flow to this sector was Rs 121.05 crore during 2014-15 against the target of Rs 401.23 crore. Issues which are being faced in the sector are

a. Reducing soil erosion and flooding, ensuring supply to the growing needs of the domestic wood products industries and meeting the fuel wood, fodder, small timber requirements of the rural population.

b. As cultivable wasteland is abundant, farm forestry may be taken up. c. Availability of good quality planting material is the major constraint for massive

afforestation programme. Suggested Action Points

a. Banks may finance for the commercially viable nurseries & tree plantations viz. Neem, Casuarina,Teak, Jatropha, Pongamia, Eucalyptus,Subabul etc. b. Explore the possibility of contract farming for raising Pulpwood Plantation with TNPL in the wastelands. c. Commercially important tree species like Casuarina, Subabul, Bamboo, Teak and ClonalEucalyptus plantations may be promoted on a large scale under agroforestry. d. Scientific practices from lab to land are to be transferred to the field, with time bound efforts from all concerned in the areas of extension. e. Panchayat level institutions may be sensitized to plan the strategy for large scale afforestation programme under MNREGA. DRDAs may take initiatives in this regard. f. Availability of good quality planting material needs to be ensured by the Forest Department. g. The SHGs along with the Village Forest Councils may be imparted training for establishment of nurseries for production of quality planting materials. h. The forestry extension centers need to be revamped and have to be geared up for training more and more farmers on technological aspects of nursery raising and plantations. i. There exists opportunities for acquiring carbon credits through plantations raised by forest based industries. These need to be tapped and benefits of the same can be passed on to farmers. j. Participation of NGOs and other institutions in Area Development Projects for Wasteland Development should be encouraged.

SFP 2016-17 Tamil Nadu

k. Availability of good quality planting material needs to be ensured by the Forest Department. l. Panchayat level institutions may be sensitized to plan the strategy for large scale afforestation programme under NREGS. DRDA may take initiatives in this regard.

vi) Animal Husbandry – Dairy, Poultry and SGP

Under the sector, Rs 9222.32 crore has been estimated as potential, which more than the ground level of 2014-15 of Rs.4918.24 crore and ACP 2015-16 target of Rs 8081.18 crore. The issues that need to be addressed are

a. Fodder cultivation may be encouraged. In all rainfed districts, it is difficult for farmers to get green fodder throughout the year.

b. Setting up of Animal Health services c. Marketing Arrangements of milk and milk products. d. Strengthening of permanent pasture lands with stylo and tree fodder e. Infrastructure of the livestock markets and slaughter houses should be improved.

Suggested Action Points

a. For the purpose of fodder cultivation, it is essential to popularize silage preparation techniques to farmers. The activity may be taken up by SHG/JLGs. b. Department of AH may educate the poultry farmers about the bio-security measures such as spacing between the sheds, system of housing, vaccination schedule, etc. to check cross contamination and prevent disease incidences on a regular basis. c. State Government may help the landless families and poor farmers to take up animal husbandry activities, community feed and fodder banks with the help of Self-Help Groups. d. Training may be provided to the beneficiaries on poultry activity to enable them to avail of financial assistance from banks for broiler units under contract farming, especially under e. sponsored schemes like PMEGP, TAHDCO, SGSY, etc. e. Awareness camps, in association with certain companies & banks, may be organized by AH Department to popularize contract farming in broiler. f. Banks may finance sheep, goat and pig rearing and breeding units under Government sponsored schemes. Support meat processing centres and also private veterinary clinics under ACABC scheme. g. Bank may also finance sheep breeding farmers so as to improve supply of quality animals. h. Banks may evolve suitable projects for financing rearing of calves with benefits of GoI subsidy, as the activity is key for ensuring supply of quality animals & and extend support for the sector through active participation in Banking Plan. vii) Fisheries Development

The aggregate credit potential for 2016-17 under this sector has been assessed at Rs 1169.08 crore. The ground level credit flow to this sector was Rs 168.23 crore during 2014-15 against the target of Rs 962.02 crore, an achievement of 17%. The following constraints need to be looked into:

a. Insufficient cold storage units under fisheries sector. b. Shrimp farms being located in the coastal areas are prone to natural calamities

like flood and cyclone. Suggestions / Action Points

a. Establishment of fish/prawn disease diagnostic labs is very much essential. Graduates in Fisheries may be encouraged to set up units under Agri-Clinics Scheme.

SFP 2016-17 Tamil Nadu

b. Department may co-ordinate the activities with CMFRI, Fisheries college and other developmental agencies existing in the district, so that modern technologies, can be transferred to fish / shrimp farmers.

c. Strengthening embankment of the lakes/tanks would also pave way for more intensive inland fisheries activities

d. Banks may extend assistance for need-based working capital for fishing crafts already in operation. Fishermen Credit Card (FCC) may be considered for fishermen.

e. Banks may consider extending credit support for conversion of shrimp trawlers into tuna long liners as well as purchase of new tuna long liners.

f. Insurance schemes for marine/shrimp farms need to be made cost effective. g. Banks may extend required credit support to Freshwater prawn units. h. Banks can also consider financing private investment for construction of farm

ponds as an integrated water harvesting structure for irrigation and fish/prawn culture.

i. SHGs/SHG Federations, JLGs may be encouraged to attempt fish culture in Panchayat tanks. SHGs who are in the field of preparing ready to eat fish products may be encouraged and assisted to participate in exhibitions at district level and state capitals.

viii) Agriculture Infrastructure For the 2016-17 the potential under the sector has been estimated at Rs 6472.39 crore consisting of potential of Rs 3672.96 crore under Storage Godown and Market Yards, Rs 1930.59 crore under Land Development and Rs 868.84 crore under Others (Bio fertilizers, Seed Processing, Vermi composting etc).

ix) Ancillary Activities This sector consists of potential of Rs 4849.40 crore under Food and Agro Processing and Rs 1064.41 under Others (ACABC, loans to MFIs etc)

x) Micro Small and Medium Enterprise The potential under this sector has been estimated at Rs 31592.32 crore, consisting of Rs 14027.45 crore of Working capital requirement and Rs 17564.87 crore Investment credit requirement, which is more than the total credit offtake of Rs 21093.46 crore (2014-15) and 2015-16 target of Rs 24820.65 crore.

xi) Other Priority Sectors In tune with the revised Priority Sector guidelines of RBI potential have estimated for the different sectors. An amount of Rs 4720.99 crore under Export Credit, Rs 5629.86 crore under Education, Rs 8711.16 crore under Housing loan, Rs 1526.86 crore under Renewable Energy, Rs 8113.47 crore under Others (loans to MFIs for on lending, PMJDY beneficiaries etc) and Rs 1474.51 crore under Social Infrastructure has been estimated under SFP 2016-17 Q Climate Change – Adaption and Mitigation

Green Climate Fund: The Green Climate Fund (GCF) has been established under Nations Framework Convention on Climate Change (UNFCCC) to make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change. National Bank for Agriculture and Rural Development (NABARD) has been accredited as the first National Implementing Entity (NIE) under Green Climate Fund (GCF).

SFP 2016-17 Tamil Nadu

National Adaptation Fund for Climate Change (NAFCC): This fund has been established by Govt of India to help the states in implementing climate adaptation projects in line with the National and State Action Plan on Climate change. NABARD has been designated as NIE for implementation of adaptation projects under NAFCC by Govt of India. An amount of Rs 350 crore has been allocated for the financial year 2015-2016. The fund would be augmented through budgetary support.

Under NAFCC, during the Eighth meeting of National Steering Committee on Climate Change (NSCCC) held on December 28, 2015 by MoEF & CC the proposal viz., Management and Rehabilitation of Coastal Habitats and Bio Diversity for Climate Change Adaptation and Sustainable Livelihood in Gulf of Mannar submitted by Govt of Tamil Nadu was approved for Rs.24.74 crores. Govt of Tamil Nadu to initiate action to implement the project.

SFP 2016-17 Tamil Nadu

Tamil Nadu

SFP 2016-17 Tamil Nadu

130331 Agro-climatic Zone

32

385

16671

13083 Normal Actual 2011-12 2012-13 2013-14

921 791 937 743 791

13033116 16 178 130

2125475 Balance

2189876

109567

244678

328326 Nos. % to Total ha. % to Total

1115041 6266555 77 2291702 35

1717831

4713862 1181344 15 1643697 25

5897472

1183610 570629 7 1658731 26

1.25

82325 1 544588 8

4248

4942 17371 0 349652 5

9607 8118224 100 6488370 100

1365

NA

17665 Total Male Female Rural Urban

72147 36138 36009 37230 34917

14604 14438 7205 7233 9475 4963

NA 794 401 393 660 134

NA 57782 31356 26426 73.54% 87.04%

NA NA NA NA NA

15979

NA NA NA

NANA NA

NA NA NA

NA

NA NA 220

NA 1751 329+2

NA 8712 71968

NA NA NA

NA 14 NA

2679096 NA NA

653161 1677 NA

1642340 NA NA

377571 NA 7790

6024 NA NA

NA

NA NA

No of units Cap.[MT] 141861 NA

NA NA 6031 NA

NA NA 22501 NA

NA NA NA NA

NA NA

NA NA

NA NAArea (

lakh

Prod. (Lakh

MT)

Area ( lakh

ha)

Prod.

(Lakh NA NA 17.26 71.15 18.30 99.14 5.42

NA NA 9.33 32.74 9.71 41.58 4.28

NA NA 8.16 6.13 9.40 7.24 0.77

1.51 6.28 1.87 7.50 4.01

Category of animal Total Male Female 3.13 324.54 2.63 244.63 93.02

Cattle - Cross bred 8.42 9.52 4.19 9.73 2.32

Cattle - Indigenous

Buffaloes 780 100 680

Sheep - Cross bred

Sheep - Indigenous 139/1651 NA

Goat 8143 2308 583522

NA

Pig - Cross bred 3359 NA

Pig - Indigenous 1 NA

Horse/Donkey/Camel 14 NA NA NA NA

Poultry - Cross bred 9231 NA

Poultry - Indigenous

Other Varieties 9686 NA NA 1 NA

Fish624294

NA

Egg (2014-15)15925

180

Milk(2014-15)7 132

257

Meat(2014-15) 492 NA

Source to be mentioned : Statistical Hand book of Tamilnadu 2014 Agricultural Policy of Tamil Nadu 2015-16

7. DEMOGRAPHIC PROFILE [in '000] (2011 Census)

Temperate and mainly tropical

53721107663

Cropping Inensity [GCA/NSA]

Area Cultivated More than Once

6. WORKERS PROFILE [in '000]

Variation from Normal

2014-15

State Profile

State - Tamil Nadu

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE

Total Geographical Area (Sq.km) Seven

No. of Districts Climate

No. of Blocks Soil Type Red loam, laterite, black, sandy coastal alluviam and red sandy soil

No. of Revenue Villages 4. RAINFALL & GROUND WATER (Actual)

No. of PanchayatsRainfall [in mm] ( 2013-

14)3. LAND UTILISATION [ha]

Total Area Reported

Current Fallow <= 1 ha

Holding Area

Forest Land Availability of Ground

Water [Ham]

Net annual recharge Net annual draft

Area Not Available for Cultivation

Other Fallow

>1 to <=2 haNet Sown Area

>2 to <=5 ha

Total or Gross Cropped Area

Permanent Pasture and Grazing Land 5. DISTRIBUTION OF LAND HOLDING (2010-11)

Land under Miscellaneous Tree CropsClassification of Holding

Culturable Waste

Small/Marginal workers

>5 to <=10 ha

Population

Agricultural Labourers

Scheduled Caste

Workers engaged in Household Industries

>10 ha

Workers engaged in Allied Agro-activities

Total

Cultivators

Rural Households

BPL Households

Scheduled Tribe

10. VILLAGE-LEVEL INFRASTRUCTURE [Nos]

Literate

Other workers

BPL

8. HOUSEHOLDS [in '000]

Category

Total Households

Villages Electrified

Having source of drinking waterHaving independent

toilets

Villages having Agriculture Power Supply

9. HOUSEHOLD AMENITIES [Nos. in '000 Households]

Villages having Post Offices

Having brick/stone/concrete houses Having electricity supply

Primary Health Sub-Centres Hospital Beds

Anganwadis Dispensaries

Villages having Banking Facilities Having access to banking services Having radio/TV sets

Villages having Primary Schools 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]

13. IRRIGATION COVERAGE [Ha] 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE

Total Area Available for Irrigation (NIA + Fallow)Fertiliser/Seed/Pesticide Outlets

[Nos]

Agriculture

Pumpsets[Nos]

Villages having Primary Health Centres

Villages having Potable Water Supply Primary Health Centres Hospitals

Villages connected with Paved Approach Roads

Power Tillers [Nos] Farmers' Clubs [Nos]

Irrigation Potential Created

Certified Seeds Supplied [MT]Agro Service Centres

[Nos]Net Irrigated Area(Total area irrigated at least once)

Pesticides Consumed [MT] Soil Testing Centres [Nos]

Total N/P/K Consumption [lakh MT]Pumpsets Energised

[Nos]

Area irrigated by Other Sources Threshers/Cutters [Nos]Krishi Vigyan

Kendras[Nos]

Irrigation Potential Utilized (Gross Irrigated Area) 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING

Area irrigated by Canals / Channels

Area irrigated by Wells Agriculture Tractors [Nos] Plantation nurseries [Nos]

Area irrigated by Tanks

15. AGRO-PROCESSING UNITS

Length of Pucca Road [Km] Godown [Nos]Type of Processing Activity

Length of Railway Route [Km] Godown Capacity[MT]

Rural/Urban Mandi/Haat [Nos] Wholesale Market [Nos]

Food (Rice/Flour/Dal/Oil/Tea/Coffee)

Sugarcane (Gur/Khandsari/Sugar) Public Transport Vehicle [Nos] Cold Storage [Nos]

Fruit (Pulp/Juice/Fruit drink) Goods Transport Vehicle [Nos] Cold Store Capacity[MT]

Spices (Masala Powders/Pastes)

Pulses

Dry-fruit (Cashew/Almond/Raisins)

16. AREA, PRODUCTION & YIELD OF MAJOR CROPS(in'ooo)

Cotton (Ginnining/Spinning/Weaving)Crop

2013-14 Productivity

[MT/ha]

Sugarcane

Milk (Chilling/Cooling/Processing)

Oilseeds8814

Paddy

Meat (Chicken/Mutton/Pork/Dry fish)

Animal feed (Cattle/Poultry/Fishmeal)

Millets

1624

Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India)

17. ANIMAL POPULATION AS PER CENSUS 2012 [in '000]

4787

Cotton (lakh bales)

Dairy Cooperative Societies [Nos] Poultry hatcheries [Nos]

Veterinary Hospitals/Dispensaries

[Nos]Animal Markets [Nos]

Disease Diagnostic Centres [Nos]Milk Collection Centres

[Nos]Artificial Insemination Centers [Nos] Fishermen Societies [Nos]

18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES

Slaughter houses [Nos]

183

19. MILK, FISH, EGG PRODUCT ION & T HEIR PER CAPIT A AVAILABILIT Y

Improved Fodder Farms [Nos]

84 99

53942

Production [MT] Per cap avail. [gm/day ]

Production [Tonnes] Per cap avail. [gm/day ]

Exotic Cattle Breeding Farms [Nos] Fish seed farms [Nos]Animal Husbandry Tng Centres

[Nos]Fish Markets [Nos]

7190

1394 3393

Sources (if not mentioned

against the respective item):

Item Nos. 1 , 6, 7 , 9 & 10 - Census 2001; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Survey 2002; Item

No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; Item No. 17 - AH Census 2003; Item Nos. 18 & 19 - Dir. of Animal Hus./19 th Live Stock Census 201-,GoI/ Dir. of

Eco. & Stat.

Production [Lakh

Nos]Per cap avail. [nos/p.a.]

Production ['000

MT]Per cap avail. [gm/day ]

SFP 2016-17 Tamil Nadu

Total RuralSemi-

urbanUrban 31-Mar-13 31-Mar-14 31-Mar-15

Commercial Banks 45 9025 2651 3035 3339 120.00 119.15 119.95

Regional Rural Bank 2 471 263 187 21 132.00 123.27 108.15

Cooperative Banks including

SCARDB24 830 266 217 347 132.00 109.83 108.77

All Agencies 71 10326 3180 3439 3707 128.00 117.42 119.24

DEPOSITS OUTSTANDING

31 Mar 13 31 Mar 14 31 Mar 15Growth(%

)Share(%) 31 Mar 13 31 Mar 14 31 Mar 15

Growth(%

)Share(%)

Commercial Banks 440644.00 503632.00 538289.64 7 93.65 528298.00 599894.00 645699.27 8 94.21

Regional Rural Bank 3942.00 4599.00 5767.04 25 1.00 5222.00 5669.00 6237.01 10 0.91

Cooperative Banks 25627.00 30970.00 30731.70 -1 5.35 33841.00 34014.00 33427.43 -2 4.89

All Agencies 470213.00 539201.00 574788.38 7 100.00 567361.00 639577.00 685363.71 7 100

Commercial Banks 261163.94 93 116374.17 88 74021.69 85 98.18 95 79267.19 96.76

Regional Rural Bank 5250.67 2 4289.55 3 3904.31 4 2650.54 3.24

Cooperative Banks 14792.07 5 10873.51 8 9016.83 10 5.00 5

Others

All Agencies 281206.68 100 131537.23 100 86942.83 100 103.18 100 81917.73 100.00

Commercial Banks 71151.82 74639.09 105 88694.20 94291.40 106 105902.74 109971.73 104 105

Regional Rural Bank 3186.46 2928.44 92 4183.02 3920.50 94 4995.68 4883.51 98 94

= Cooperative Banks 7454.74 8618.53 116 9427.07 10283.97 109 10066.69 10528.53 105 110

Others 720.75 721.26 100 692.01 773.83 112 935.55 1160.93 124 112

All Agencies 82513.77 86907.32 105 102996.30 109269.70 106 121900.66 126544.70 104 105

Crop Loan 37671.79 50606.70 134 45769.52 61007.20 133 53456.45 67400.72 126 131

Term Loan (Agr) 14653.75 7652.28 52 19877.73 10010.86 50 24057.12 14229.62 59 54

Total Agri. Credit 52325.54 58258.98 111 65647.25 71018.06 108 77513.57 81630.34 105 108

Non-Farm Sector 14293.53 12639.85 88 17644.13 17831.21 101 21730.20 21093.46 97 96

Other Priority Sector 15894.70 16008.49 101 19704.92 20420.43 104 22656.89 23820.90 105 103

Total Priority Sector 82513.77 86907.32 105 102996.30 109269.70 106 121900.66 126544.70 104 105

Source to be mentioned : SLBC and GLC data from banks

Target

[Rs. Cr]

Ach'ment

[Rs. Cr]

Ach'ment

[%]

Target

[Rs. Cr]

Ach'ment

[Rs. Cr]

Ach'ment

[%]

Ach'ment

[%]

Ach'ment

[%]

SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Broad Sector

2012-13 2013-14 2014-15Average

Ach[%] in

last 3

years

Target

[Rs. Cr]

Ach'ment

[Rs. Cr]

Ach'ment

[%]

Target

[Rs.cr]

Ach'ment

[Rs. Cr]

Ach'ment

[%]

Target

[Rs.Cr]

Ach'ment

[Rs. 'Cr]

Amount

[Rs. Cr]

% of Total

Loans

AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Agency

2012-13 2013-14 2014-15Average

Ach[%] in

last 3

years

Target

[Rs.'Cr]

Ach'ment

[Rs. Cr]

Amount

[Rs. Cr]

% of Total

Loans

Amount

[Rs. Cr]

% of Total

Loans

Amount

[Rs. Cr]

% of Total

Loans

PERFORMANCE TO FULFILLTHE NATIONAL GOALS (As on 31 March 2015)

Agency

Priority Sector Loans Loans to Agr. SectorLoans to Weaker

Sections

Loans under DRI

SchemeLoans to Women

Amount

[Rs.'Cr]

% of Total

Loans

All agencies

LOANS & ADVANCES OUTSTANDING

Agency

Amount of Deposit [Rs. crore] Amount of Loan [Rs.crore]

Agency

Commercial Banks

Regional Rural Banks

Cooperative Banks

Banking Profile

State - Tamil Nadu

NETWORK & OUTREACH (As on 31 March 2015)

AgencyNo. of

Banks/Soc.

No. of Branches CD RATIO