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Agriculture including Allied activities accounted for only 14.10% of GDP at constant (2004-05) prices in 2011-12, its role in the country’s economy is much bigger with its share in Total employment according to the 2001 census to be as high as 58.20 %. • Agriculture, with its allied sectors, is the largest livelihood provider in India
Agriculture performance determines the growth on the Indian economy. • It provides raw material to industries and edible goods at lowest cost. • Agri. finance assumes vital and significant importance in the agro – socio – economic development of the country both at macro and micro level.
Phases of Agriculture: • Traditional agriculture with low energy, capital and input/output ratio/surplus. • Technologically dynamic agriculture with low capital intensity and low market integration. • Technologically dynamic agriculture with high capital intensity and high market integrating.
Definition : • Extending finance to Individual Farmers, Association of Farmers, Corporates consisting of Farmers, Self Help groups, Joint Liability Groups etc., for their Agriculture, Allied activities and consumption needs.
Purpose : • For completion of Farm operation. • At an affordable cost. • At the time of need (Timely finance ) • Achieve our Priority Sector / Agriculture Target • Agri. 18% ( Direct 13.5% Indirect 4.5%)
Financing : • Agri-business include crop, livestock, fishery-based projects in terms of production, processing, storage and value addition. Agri-business also include infrastructure for post-harvest handling (pre-cooling), processing, marketing and even equipments manufacturing, (micro-irrigation),fabrication of green houses etc. • Massive investment is needed to carry out major and minor irrigation projects, rural electrification, installation of fertilizer and pesticide plants, execution of agricultural promotional programmes.
Financing : • Financing Crop production by • Demand loan • Cash Credit • Kissan Credit Card
Criteria : • Limit is fixed by • 1. Land holding • 2. Crop that is raised • 3. Scale of Finance ( DLCC)
Allied Activities: • Dairy • Poultry • Fishery • Sericulture • Apiculture • Horticulture
Various Schemes : • Star Gold Loan • Agri. clinics and Agri. business centers • Construction of Godown and Ware house • Construction of Cold storage • Krishi Vahan Scheme • Plantation finance • Purchase of land by Small and Marginal Farmers • Star KrishiVahan
Various Schemes : • Hi-Tech Agriculture • Mushroom cultivation • Nursery • Vermi compost • KCC Card • Samadhan Card • Rural Godown • Agri. clinics and Agri. Business Centre
Strategies : • We are targeting disbursement of over Rs.1500 Crores each in January 2014 and February 2014. • Focus is laid on share of investment credit to have sustainable outstanding levels for a longer tenure and for improving yields. • Monitoring disbursement levels on day to day basis and communicating with concerned zones/ LDMs is being ensured to motivate them towards further improvement.
Definition: Food processing is the transformation of raw ingredients into food, or of food into other forms. Food processing typically takes clean, harvested crops or butchered animal products and uses these to produce attractive, marketable and often long shelf-life food products.
The processed food industry is divided into the following broad segments: • Primary processed food - which includes products such as fruits and vegetables, packed milk, unbranded edible oil, milled rice, flour, tea, coffee, pulses, spices, and salt, sold in packed or non-packed forms. • Value-added processed food - which includes products such as processed fruits and vegetables, juices, jams, pickles, squashes, processed dairy products (ghee, paneer, cheese, and butter), processed poultry, and processed marine products, confectionary, chocolates, and alcoholic beverages.
Overview: • In the post-independence period, India witnessed rapid growth in food- processing sector specifically during 1980s. • Even after a strong agricultural production base, India’s food processing industry is still under developed. The highest share of the processed food is in the dairy sector, where 35% of total produce is processed, of which only 15% is processed by the organized sector. The processing level is around 20% in meat and poultry products.
Overview: • India's agricultural base holds a significant potential for the Food Processing Industry that provides a strong link between agriculture and consumers. Government also has accorded a high priority to the sector and has provided many fiscal incentives. • In India, the food processing industry is highly fragmented and is dominated by the unorganized sector. A number of players in this industry are small.
Financing: • Earlier, Loans granted for Food and Agro Processing were covered under Indirect Agriculture, however after July 2012, Loans for food and agro processing are being classified under Micro and Small Enterprises, provided the units satisfy investments criteria. • Facilities e.g. Fund based and Non Fund based facilities are provided for financing to these sectors.
Indian infrastructure for agri-produce is inadequate. A big chunk of the produce from the fields is lost due to poor post harvesting facilities and lack of cold chain infrastructure. India . The cold storage facilities now available are mostly for a single commodity like potato, orange, grapes, pomegranates, flowers, etc. which results in poor capacity utilization. • There is also a lack of trained experts for testing, quality certification, R&D etc. who can educate the farming community of the standards and requirements and the processes of obtaining certifications. R&D efforts, as discussed earlier, also are a drawback.
Increase in integrated storage facilities requirement Cold storage facilities. • Access for Global Market to be provided. • Mega Food Parks • Integrated Cold Chain. • Financing for joint Research Initiatives • Packaging and barcoding.
Highlights of performance of our Bank • The overall growth of priority sector advances as of December 2013 is at 11.84% over March 2013 level. • Direct agriculture advances have registered growth of 21.15% over March13 (Y-O-Y at 34.91%). • Growth in Total Agriculture advances has been at 19.46% over March 2013. (Y-O-Y at 29.21%) • Growth in MSE has been at 6.78% Over March 2013. (Y-O-Y at 18.83%)
Performance vis a vis Regulatory Requirement Rs. in crores
Highlights of performance of our Bank • As of 31.12.2013, we have achieved regulated level of lending to direct agricultural sector at 13.50% (we are at 14.25%) despite rise in ANBC by Rs.24288 crores for 2013-14. • We have formulated strategy for indirect finance to reach at 18% regulated level for total Agricultural Advances. The strategy paper has been circulated to all NBGs / ZOs.