NABARD NormsA SINGLE LECTURE FOR WHOLE NORMS BY NABARD

About NABARD

Features of NABARD Schemes

Training Training handicraft artisans

Implementing

Implementing Government’s development schemes

Designing Designing new projects for rural development

Supervising Supervising Regional Rural Banks (RRBs) and Cooperative Banks

Guiding Guiding banking sector in achieving their credit targets

Preparing Preparing credit plans at district level

Building Building infrastructure in rural areas

Providing Providing support by refinancing or funding

Types of Loan

Short Term Loans

NABARD has sanctioned short-term credit loan of amount Rs. 55,000 cr to several financial institutors

in the financial year of 2017-18.

Each withdrawal against the sanctioned credit limit is repayable within 12 months.

Refinance is provided for production purposes at concessional rate of interest to State Cooperative Banks (SCBs) and Regional Rural Banks (RRBs) by

way of sanction of credit limits.

Medium Term Conversion

In case of RRBs, NABARD’s refinance is to the extent of 70% of eligible amount with sponsor

banks share at 25% and RRB’s share at 5%.

NABARD provides refinance to StCBs in case of conversion to the extent of 60% of eligible amount with State Govt.’s share at 15% and StCBs/DCCBs

share at 25%.

The conversion of ST(SAO) loans would be available where the crop loss has been 33% or

more.

Long Term Loan

Long Term Loan are given for 5-15 years

NABARD has refinanced around Rs. 65,240

cr for financial institutions in the FY 2017-18

that also include concessional refinance of

Rs. 15,000 cr to Corporative banks and

Regional Rural Banks (RRBs).

it aims to increase its long-term on-lending

or refinance portfolio to about Rs 80,000

crore in the current fiscal 2018-19

DETAILS OF RATES OF INTEREST CHARGED BY NABARD

Short Term refinance assistance:

State Cooperative Banks, DCCB and RRBs for financing crop loans 4.50

Commercial Banks./RRBs in respect of their finance to PACS towards crop loans 4.50

Long Term refinance assistance

LT loan to State Govt. for contribution to share capital of coop. credit institutions 8.50

RRBs/ StCBs/SCARDBs

Refinance for 5 years and above 8.35

Refinance for 3 years to less than 5 years 8.45

Refinance for 18 months to less than 3 years 8.35

Functions of NABARD

Providing financing services for the improvement and development of rural India

Organizing and managing funding programs for agriculture and farming activities

Policy making for rural financial institutions

NABARD provides funding services for the development of food parks and food processing units in designated food parks

NABARD offers lending services to warehouse and cold chain and cold storage infrastructure

It provides short-term and long-term refinance services to its customers also providing direct refinance services to cooperative banks

It offered credit facilities to marketing federations

Specialises in providing long-term irrigation and rural infrastructure development funds

Schemes by NABARD

Dairy Entrepreneurship Development Scheme

Capital Investment Subsidy Scheme for Commercial Production Units for Organic or Biological Inputs

Rural Godowns

Agriculture Marketing and Infrastructure Grading Standardizations

Agriclinic and Agribusiness Centres Scheme

Solar Schemes

Agricultural Marketing Infrastructure

National Livestock Mission

Interest Subvention Scheme

NABARD Norms

Terms to knowWhat is

NABARD Norms

Tube wells with SPV (Solar Photovoltaic)

Moratorium Stocking &

Post Stocking in fisheries

Project CostFinancial

Outlayoperational

costMargin Money

Bank loan & Subsidy

Recurring cost

ONION STORAGE STRUCTURES

Onion bulbs are generally stored from May to November.

Storage temperature should be 30 degree C and Humidity 65-70%

The onion storage structure should be oriented in the North - South direction i.e., length facing the East-West direction.

WATER PUMPSET MODEL

The discharge of a solar pump with array area (Panel Area) of 2-4m varies from 6-8 lit/s at a head of 15- 50 m.

This could irrigate about 1.5 - 4 ha of

land.

TYPES OF STRUCTURES

Dugwell with SPV

• Benefitting Area (ha.): 1.0

Borewell with SPV

• Benefitting Area (ha.): 1.6

Shallow Tube wells with SPV

• Benefitting Area (ha.): 2.0

Composite Fish Culture

Water depth of 2 meters can be used for fish culture purpose and minimum level should not fall below one meter.

The pond will be ready for stocking after 15 days of application of fertilizers. Fish fingerlings of 50- 100 gm size (approx) should be used for stocking @ 5000 nos. per hectare.

The recommended feeding rate is 5 - 6 % of the body weight up to 500 gmsize of fish and then reduce to 3.5% of body weight from 500- 1000gm size.

Species and Feeding habitSpecies Feeding Habit Feeding Zone

Indian Major CarpCatla Zoo plankton feeder Surface feeder

Rohu Omnivorous Column feeder

Mrigal Detrivorous Bottom Feeder

Exotic CarpExotic carps

Silver carp Phytoplankton feeder Surface feeder

Grass carp Herbivorous Surface, column andmarginal areas

Common Carp Detrivorous/Omnivorous Bottom feeder

Harvesting

Harvesting is generally done at the end of 1st year, when the fishes attain average weight of 800 gm to 1.25 kg.

With Proper management a production of 4 to 5 tons/ha can be obtained in a year.

Repayment: Repayment of bank loan is possible

in 8 years with 1-year moratorium (temporary

prohibition of an activity)

Subsidy for Fisheries (NFDB) will be 40% and 60% as per the guidelines of Blue revolution scheme

Fish Cold Storages

Capacity of cold stores normally ranges between 1,000 MT and 10000 MT.

The International Institute of Refrigeration recommends a storage temperature of -18°C for lean fish such as cod and haddock and -24°C for fatty species such as herring and mackerel.

Fish are therefore normally stored at −18 to −29 °C (0 to −20 °F), resulting in a variable shelf life ranging from a few weeks to almost one year.

Frozen must be stored at a constant temperature of −23 °C (−10°F) or below in order to maintain a long shelf life and ensure quality.

Project Cost

Costs will depend to a great extent on the

location of the site. The cost of

construction of 1000 MT, 2000 MT and

3000 MT capacity including land cost and

machinery and other equipment’s works

out to Rs.175 lakh, Rs.395 lakh and

Rs.600.50 lakh respectively.

INTENSIVE FISH CULTURE

The average productivity from ponds at

present is to the tune of 2160 kg/ha/year.

The capital cost for excavation of 1 Ha

pond works out to be Rs 3,02,500/- and

the recurring cost as Rs 2,88,075/-.

Organic manuring may be done in

monthly instalments @ 1000 kg/ha.

FOOD AND VEGETABLE

PROCESSING UNIT

Canned fruit pulp and vegetables:

In case of pickling, The fruits and vegetables are immersed in 5–10 per cent salt solution (brine) leading to lactic acid fermentation.

The natural sugars present in fruits and vegetables are converted to lactic acid at 25°C.

Fresh fruits contain more than 80 per cent water and 10 to 15 per cent sugars.

Squash

As per Indian Standards, squash should contain at least 25 per cent (by volume) of fruit juice.

The squashes are consumed after dilution by drinking water in 1:3 ratio.

A project cost of Rs.74.78 Lakh has been estimated . For a small scale fruit and vegetable processing unit, a plot of land measuring 0.5 acre, with built-up area of 3850 sq ft is considered sufficient.

An interest rate of 12 per cent for working out the bankability of the model project.

The margin money varies from minimum 10 per cent to 25 per cent of project cost. We have assumed margin money of 25 per cent in this model scheme.

Model bankable project on Poplar based agroforestry

Poplar (Populus deltoids) is one of the fast growing multipurpose tree species which can be grown as a mono crop as well as in association with agricultural crops.

Poplar being a deciduous species adds tremendous amount of leaf litter to the soil and is considered to be one of the best species for agroforestry.

Poplar grows well in the subtropical climate where the temperature extremes are not too severe.

It does not perform well on saline, alkaline (pH>8.0), dry sandy soils, waterlogged areas and hard clays.

Cuttings obtained from the middle of the main shoot with diameter between 1-3 cm perform better.

The best time of planting is middle of February. The distance to be kept is 80 cm row to row and 60 cm plant to plant.

The plants are ready for harvest in 6th year when they attain a girth of about 75-90 cm.

Margin money varies from 5% to 25% depending upon the type of investment and the class of borrowers.

Model Bankable Project on Hi-Tech Agriculture

There are two approaches of cultivation:

Greenhouse / poly house system and open-air system.

Classification of greenhouses:

Greenhouse type based on shape:

a) Lean to type greenhouse.

b) Even span type greenhouse.

c) Uneven span type greenhouse.

d) Ridge and furrow type.

e) Saw tooth type.

f) Quonset greenhouse.

g) Interlocking ridges and furrow type Quonset greenhouse.

h) Ground to ground greenhouse.

Greenhouse type based on Utility:

a) Greenhouses for active heating.

b) Greenhouses for active cooling.

3. Greenhouse type based on construction

a) Wooden framed

structure.

b) Pipe framed

structure.

c) Truss framed

structure.

4. Greenhouse type based on covering material

a) Glass glazing.

b) Fiber glass reinforced plastic (FRP) glazing (Plain sheet, corrugated sheet.)

c) Plastic film (UV stabilized LDPE film, Silpaulin type sheet, Net house)

d) Based on the cost of construction (High cost Green House, Medium cost Green House, Low cost Green House)

Computerized green houses

The poly houses are constructed

with the help of ultraviolet plastic

sheets, so that they may last for

more than 5 years. Sheets are

usually of 1501-micron thick plastic

sheet.

Crops Suitable for PolyhouseCultivationTomatoes.

Cucumbers.

Coriander (Cilantro)

Eggplants (Brinjal).

Okra (Lady Finger).

Green beans.

Bell Peppers (Capsicum).

Cabbage.

Spinach.

Chilli.

Carrots.

Broccoli.

Microgreens.

Lettuce.

Summer Squash.

Leafy vegetables.

Fruit crops:

Watermelons.

Peaches.

Strawberries.

Raspberries.

Citrus fruits.

Environmental control

Relative humidity control: The

maximum achievable relative humidity is

90% only in fan regulated (FR)

greenhouse. The RH in Nonventilated

(NV) GH can be increased by providing

foggers.

Cost involved in Polyhouse construction

For low cost/low tech polyhouse without exhaust fan systems and cooling pads = Rs.400 to Rs.500/square meter.

Medium cost/medium tech polyhouse with cooling pads and exhaust fan systems (without automation) = Rs.900 to Rs.1200/square meter.

Hi-tech polyhouse with fully automatic control system = Rs.2500 to Rs.4000/square meter.

There are 2 types polyhouse costs, we can consider

Fixed cost: Land, office room, labor rooms, packing room, cold storage rooms, and other fixed items like drip and sprinkler systems.

Variable/Recurring cost: Manures, fertilizers, pest and disease control chemicals, planting materials, electricity, and transportation charges come under recurring expenses.

Financing Aspects

50% of cost subject to a maximum of 3500 per 500 m2 limited to 2 ha per beneficiary will be given as subsidy for shade nets also.

The national Mission on Micro irrigation offers a subsidy of 60% of system cost for small and medium farmers.

FARM MECHANIZATION

RURAL GODOWN

Small sized godowns :

Capacity of 50, 100, 200 and 250

Medium sized godowns: Capacity

of 500, 1000 MT and 2000 MT

Large sized godowns: Capacity

above 2000 MT

Assumptions for financial analysis

Cost of construction – Rs.2800 per MT

Bank Loan – 75%

Interest rate – 12%

Repayment period – 10 years with one year grace period

Maximum capacity utilization is 90%

Maximum Storage for 10 months

ANIMAL HUSBANDARY

The average productivity (per day milk

yield) of cross bred, indigenous cows

and buffaloes in India was 7.02 Kg,

2.36 Kg and 4.89 Kg

Dairy Farming

As per the NABARD India accounts for about 57.3 per cent of the world’s buffalo population and 14.7 per cent of the cattle population.

In case of Dairy the items of finance would include capital asset items such as purchase of milch animals, construction of sheds, purchase of equipment etc.

For high value projects, the borrowers can use Consultancy Services (NABCONS).

Margin depends on the category of the borrowers and range from 10 to 25%.

Rate of interest as 12 % p.a.

Security will be as per NABARD/RBI guidelines issued from time to timeThe loan will be repaid in suitable monthly/quarterly instalments usually within a period of five to seven years.

Biomass Production: Moringa vs Other Fodder Crops

Sr. No. Crop Biomass Production MT/ha/Year

1. Moringa 650

2. Napier grass 350

3. Cereals in rotation 200

4. Berseem 100

5. Sorghum 55

6. Cowpea 45

Pig Farming A sow can be bred as early as 8-9 months of age and can farrow twice in a year.

They produce 6-12 piglets in each farrowing.

Pig has dressing percentage ranges from 65 - 80 in comparison to other livestock species whose dressing yields may not exceed 65%.

Pork is rich in vitamins like thiamin, Niacin and riboflavin.

Pig farming provides quick returns since the marketable weight of fatteners can be achieved with in a period of 6-8 months.

Pork production in India is limited, representing only 7% of the country’s animal protein sources

Margin depends on the category of the borrowers and may range from 10% to 25%

interest as 12% p.a

Poultry Broiler FarmingRearing period is 5-6 weeks only

More number of flocks can be taken in the same shed

As per the NABARD per capita availability of poultry meat in India is only 2.96 kg which is way below the ICMR recommendation of 11 kg meat per capita per annum

In the early nineties, contract farming for broilers was introduced and in 1995

The loan is disbursed mostly in 2 stages viz., construction of sheds / other civil structures, purchase of equipment and machinery, recurring cost on purchase of chicks, feeds, medicines, etc.

Margin depends on the category of the borrowers and may range from 10% to 25%.

Rate of interest is assumed at 12.50% p.a.

Usually the repayment period of loan for broiler farming is 6 to 8 years.

Poultry Layer Farming

Present availability of 74 eggs is far below the ICMR recommendation of 180 eggs per capita per annum.

Only 6% of the eggs produced in the country are converted into processed egg products mainly for export.

For high value projects, the borrowers can utilise the services of NABARD Consultancy Services (NABCONS) who are having wide experience in preparation of Detailed Project Reports.

Margin depends on the category of the borrowers and may range from 10% to 25%.

Rate of interest is assumed at 12.50% p.a.

The loan will be repaid in suitable monthly/quarterly installments usually within a period of seven to nine years with first year as grace period.

Sheep Farming

Sheep with its multi-facet utility for wool, meat, milk, skins and manure, form an important component of rural economy particularly in the arid, semi-arid and mountainous areas of the country.

Rate of interest is assumed at 12.00% p.a

Usually the repayment period of loan for sheep farming is 6 to 8 years.

Model scheme on Automatic Milk Collection Stations

The capacity of Automatic Milk Collection Stations is to analyse 120 to 150 samples per hour.

a) Fat measurements : 0 - 13% b) Measuring capacity : 120 to 150 operations per hour. c) Power supply : AC 220 to 240 watts 5O HZ.

An average unit cost of Rs.1.25 lakh including the cost of battery has been considered.

Repayment has been fixed at 7 years for the model project.

Interest rate is considered at 13.5% pa.

Custom Hiring Centres (CHC)

Highest use of mechanical power is in the order of 3.5 kw/ha in Punjab and less than 1kw/ha in States like Bihar, Orissa, Jharkhand etc.

Sub Mission on Agricultural Machinery (SMAM) is one initiative towards increasing the mechanization.

The cost of the unit works out to Rs. 15.50 lakh, which includes cost of construction of a workshed of 500 sq. ft.

Azolla Fodder PlotAzolla is an aquatic floating fern, found in temperate climate suitable for paddy cultivation.

The Blue Green Algae cyanobacteria (Anabaena azollae) present as a symbiont with this

fern in the lower cavities actually fixes atmospheric nitrogen.

The rate of nitrogen fixed is around 25 kg/ha.

It can fix atmospheric CO2 and nitrogen to form carbohydrates and ammonia respectively

and after decomposition it adds available nitrogen for crop uptake and organic carbon

content to the soil.

It solubulises Zn, Fe and Mn and make them available to the rice.

Azolla can be a substitute for chemical nitrogenous fertilizers to a certain extent (20 kg/ha)

and it increases the crop yield and quality.

Comparison of biomass and protein content of Azolla with other fodder

Azolla cultivated for fish feed, is grown in situ in the pond.

The biomass production under natural condition i.e. in rice field is only 50 g/ sq.m/day as against optimum production of 400 g/sq.m/day.

Azolla can be supplemented with regular feed of the animal @ 2-2.5 kg of azolla per animal.

Drip IrrigationIn terms of savings of water (50-60%) of that required for flow irrigation.

A drip system is not suitable for clayey or gravely soils.

Best results with this system are obtained with medium textured soils.

If single emitter is provided, it must be placed 15-30 cm. from the base of the plant.

Spacing and Plant Population of Important Plants/Crops

Infiltration Rate of Soil

Average season wise pan evaporation

Desired Storage Environment of Fruits and Vegetables in the cold storage

Orange 0 - 10 85 - 90

Peach -1 - 1 88 - 92

Potato 1.5 - 4 90 - 94

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