RABI CAMPAIGN 2004-05

PRESENTATION ON

AGRICULTURAL CREDIT,

CROP INSURANCE SCHEMES

AND COOPERATION

DEPARTMENT OF AGRICULTURE & COOPERATION

18TH SEPTERMBER, 2004

AN OVERVIEW OF AGRICULTURE CREDITAN OVERVIEW OF AGRICULTURE CREDIT

IX Plan target: Rs.2,29,750 crore.IX Plan target: Rs.2,29,750 crore.

Achievement: Rs.2,31,798 crore(CAGR: 19.4% ).Achievement: Rs.2,31,798 crore(CAGR: 19.4% ).

Estimated credit requirement for X Plan: Rs. Estimated credit requirement for X Plan: Rs. 7,36,570 crore.7,36,570 crore.

X Plan first two year’s achievement far short of X Plan first two year’s achievement far short of targets.targets.

2002-03: Target:2002-03: Target: Rs. 82,073 crore; Rs. 82,073 crore; Achievement: Rs. 70,810 crore. Achievement: Rs. 70,810 crore.

2003-04: Target: 2003-04: Target: Rs. 1,05,958 crore; Rs. 1,05,958 crore; Achievement: Rs. 8 80,000 crore. Achievement: Rs. 8 80,000 crore.

Regionwise position of Agriculture & Allied Loans Regionwise position of Agriculture & Allied Loans

(ST & LT); disbursement – (ST & LT); disbursement – Shares in Total (per cent)Shares in Total (per cent)

RegionRegion 1995-19961995-1996 2001-20022001-2002

NorthernNorthern 11.611.6 19.919.9

North EasternNorth Eastern 0.40.4 0.50.5

EasternEastern 6.46.4 7.47.4

CentralCentral 16.416.4 14.114.1

WesternWestern 17.117.1 14.414.4

SouthernSouthern 48.048.0 43.843.8

100100 100100

Share of Western & Southern Regions continues to Share of Western & Southern Regions continues to be significant at 58%be significant at 58%

Share of Northern Region has increased Share of Northern Region has increased significantly from 11.6% to 19.9% mainly because significantly from 11.6% to 19.9% mainly because of Punjab, Haryana & Rajasthanof Punjab, Haryana & Rajasthan

-- Punjab 5.7% to 10.4%Punjab 5.7% to 10.4%-- Haryana 2.2% to 4.4%Haryana 2.2% to 4.4%-- Rajasthan 2.5% to 3.6%Rajasthan 2.5% to 3.6%

The Central & Western regions traditionally The Central & Western regions traditionally associated with good potential in agriculture have associated with good potential in agriculture have not attracted credit flow.not attracted credit flow.

Even state-wise, Maharastra has been static at 7%, Even state-wise, Maharastra has been static at 7%, Gujarat has fallen from 9.8% to 7.0%, MP has Gujarat has fallen from 9.8% to 7.0%, MP has declined from 9% to 3.9% in 2001-2002.declined from 9% to 3.9% in 2001-2002.

National Common Minimum ProgrammeNational Common Minimum Programme

Flow of rural credit to be doubled in the next Flow of rural credit to be doubled in the next three years.three years.

Rural credit delivery system will be reviewed Rural credit delivery system will be reviewed and immediate steps will be taken to ease the and immediate steps will be taken to ease the burden of debt and high interest rates on farm burden of debt and high interest rates on farm loans.loans.

Rural cooperative credit system will be nursed Rural cooperative credit system will be nursed back to health.back to health.

Action taken to implement NCMPAction taken to implement NCMP

Special credit package announced by Government of Special credit package announced by Government of India on 18India on 18thth June, 2004 for doubling credit flow in June, 2004 for doubling credit flow in next three years and providing credit related relief to next three years and providing credit related relief to farmers.farmers.

Agriculture credit flow to increase from Rs. 80,000 Agriculture credit flow to increase from Rs. 80,000 crore in 2003-04 to Rs.1,04,500 crore in 2004-05 crore in 2003-04 to Rs.1,04,500 crore in 2004-05 (Commercial Banks: Rs.57,000 crore; RRBs: (Commercial Banks: Rs.57,000 crore; RRBs: Rs.8,500 crores & Coop. Banks: Rs.39,000 crores).Rs.8,500 crores & Coop. Banks: Rs.39,000 crores).

Enhancing coverage of credit through KCCs by Enhancing coverage of credit through KCCs by expanding its scope to include component of expanding its scope to include component of consumption credit and term loans for investment in consumption credit and term loans for investment in agriculture & allied activities.agriculture & allied activities.

Reviewing the system of fixation of scale of finance Reviewing the system of fixation of scale of finance to meet the realistic credit needs of farmers.to meet the realistic credit needs of farmers.

contd.contd. Each rural & semi- urban branches of commercial Each rural & semi- urban branches of commercial

banks to bring into their fold at least 100 new farmers banks to bring into their fold at least 100 new farmers during current year. during current year.

Each rural & semi-urban branches of Commercial Each rural & semi-urban branches of Commercial Banks to take up at least 2 or 3 new investment Banks to take up at least 2 or 3 new investment projects in the area of plantation, horticulture,fisheries, projects in the area of plantation, horticulture,fisheries, organic farming, agro- processing, live-stock, micro- organic farming, agro- processing, live-stock, micro- irrigation, sprinkler irrigation etc. irrigation, sprinkler irrigation etc.

In every district, on an average, 10 agro clinics to be In every district, on an average, 10 agro clinics to be financed by the banks during current year.financed by the banks during current year.

Formation and financing of SHGs of tenant farmers Formation and financing of SHGs of tenant farmers and oral lessees.and oral lessees.

Contd…Contd…

Debt restructuring of farmers under following heads:Debt restructuring of farmers under following heads:

1.1. Rescheduling /restructuring of loans of farmers in Rescheduling /restructuring of loans of farmers in distress.distress.

2.2. Relief to farmers in arrears.Relief to farmers in arrears. 3.3. One-Time Settlement (OTS) Scheme.One-Time Settlement (OTS) Scheme. 4.4. Redemption of Debts of Farmers from non-Redemption of Debts of Farmers from non-

Institutional Sources.Institutional Sources.

Guidelines issued by RBI/ NABARD for Guidelines issued by RBI/ NABARD for implementation of these measures.implementation of these measures.

Expectations from State / UTsExpectations from State / UTs To gear up their system for successful To gear up their system for successful

implementation of the announced packageimplementation of the announced package. .

Should work out an appropriate review and Should work out an appropriate review and monitoring mechanism.monitoring mechanism.

SLBC should be energized and made an effective SLBC should be energized and made an effective forum for improving agriculture credit flow.forum for improving agriculture credit flow.

Government should take interest and be represented Government should take interest and be represented at appropriate levels in the SLBC meetingsat appropriate levels in the SLBC meetings. .

Keep watch on rate of interest and procedural Keep watch on rate of interest and procedural complexitiescomplexities..

CROP INSURANCE SCHEMESCROP INSURANCE SCHEMES

Risk Management and Crop InsuranceRisk Management and Crop Insurance

Uncertainty in agricultural production – depend to a large extent on weather conditions.

Agriculture production dependant upon good monsoon – 60% area is still unirrigated.

Some areas are prone to floods and some to drought which affect crop yields.

Crop Insurance is an efficient risk management tool.

At present, Government sponsored National Agricultural Insurance Scheme (NAIS) and Pilot Project on Farm Income Insurance Scheme (FIIS) are under implementation.

Varsha Bima Yojana (Rainfall Insurance) is implemented by some insurance companies including AIC, on Pilot basis.

POINTS RELATING TO CROP INSURANCE POINTS RELATING TO CROP INSURANCE INCLUDED IN PRESIDENT’S ADDRESS, BUDGET INCLUDED IN PRESIDENT’S ADDRESS, BUDGET

ANNOUNCEMENT AND COMMON MINIMUM ANNOUNCEMENT AND COMMON MINIMUM PROGRAMME (CMP)PROGRAMME (CMP)

Farm Income Insurance Scheme (FIIS) will be made more Farm Income Insurance Scheme (FIIS) will be made more responsive to the needs of farmers (President’s Address, June 7, responsive to the needs of farmers (President’s Address, June 7, 2004).2004).

The National Agricultural Insurance Scheme (NAIS) which The National Agricultural Insurance Scheme (NAIS) which insures the yield is being redesigned (Key features of Budget insures the yield is being redesigned (Key features of Budget 2004-05).2004-05).

Crop and livestock insurance schemes will be made more Crop and livestock insurance schemes will be made more effective (CMP)effective (CMP)

NATIONAL AGRICULTURAL INSURANCE NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS)SCHEME (NAIS)

NAIS with increased scope of coverage, was introduced from Rabi 1999-2000.

The scheme is implemented by 23 States and 2 Union Territories.

During first nine crop seasons, 462 lakh farmers have been covered over an area of 743 lakh hectares.

Claims to the tune of Rs. 4480.19 crores have been paid/are payable as against the premium income of Rs. 1242.65 crores.

Crops covered are food crops (Cereals, Millets & Pulses), Oil seeds and Annual Commercial/ horticultural crops - Cotton, Potato, Sugarcane, Onion, Chilly, Ginger, Turmeric, Jute, Annual Banana, Pine-apple and Topioca.

SHORTCOMINGS IN NAISSHORTCOMINGS IN NAIS Over a period of time, some shortcomings have been observed.Over a period of time, some shortcomings have been observed.

Unit area of insurance is on higher side.Unit area of insurance is on higher side.

Inadequate infra-structure in the field.Inadequate infra-structure in the field.

Compulsory coverage of loanee farmers.Compulsory coverage of loanee farmers.

Insignificant participation by Non-loanee farmers.Insignificant participation by Non-loanee farmers.

Delay in payment of claims on account of late submission of yield data.Delay in payment of claims on account of late submission of yield data.

Premium not on actuarial basis.Premium not on actuarial basis.

Low indemnity level (60%).Low indemnity level (60%).

Assessment of yield to be protected is unrealistic and is on lower side.Assessment of yield to be protected is unrealistic and is on lower side.

Farm Income Insurance Scheme (FIIS)Farm Income Insurance Scheme (FIIS) FIIS has been evolved to protect Farm Income of the FIIS has been evolved to protect Farm Income of the

farmer from production risk and price variation risk.farmer from production risk and price variation risk.

A minimum guaranteed income is ensured under the A minimum guaranteed income is ensured under the scheme.scheme.

FIIS was implemented on Pilot basis in Rabi 2003-04 in FIIS was implemented on Pilot basis in Rabi 2003-04 in 19 districts of 12 States.19 districts of 12 States.

In Rabi 2003-04, 1.80 lakh farmers covered over an area In Rabi 2003-04, 1.80 lakh farmers covered over an area of 1.92 lakh hectare. Premium to the tune of Rs. 14.06 of 1.92 lakh hectare. Premium to the tune of Rs. 14.06 crore collected for the Sum Insured of Rs. 239 crore.crore collected for the Sum Insured of Rs. 239 crore.

The Pilot Project on FIIS has been implemented on The Pilot Project on FIIS has been implemented on existing pattern in Kharif 2004 season in 24 districts of 6 existing pattern in Kharif 2004 season in 24 districts of 6 States.States.

The implementation of the Pilot Project on FIIS, is being The implementation of the Pilot Project on FIIS, is being evaluated through an external agency.evaluated through an external agency.

Weather InsuranceWeather Insurance Insurance for losses due to vagaries of weather - excess of

rainfall, shortfall in rainfall, lack of sunshine, temperature and humidity variation etc.

Weather index based on weather parameters and by taking into account the past weather data is worked out.

If actual index is less than threshold claims become payable as a fixed amount per percentage point of deviation of actual index from pre-specified threshold.

Rainfall excess or deficiency (drought) perceived as a single biggest cause (90% loss) for yield losses.

…… …… Contd.Contd. If actual rainfall index as compared to normal

rainfall index falls short, the claims become payable.

Weights are assigned keeping in view the importance of rainfall vis-à-vis crop growth at different stages.

As per available information Rainfall Insurance has been introduced by General Insurance Companies like ICICI-Lomabard, IFFCO-Tokio, AIC etc.

Rainfall insurance has certain advantages in the sense that it is transparent, simple and allows speedy settlement of claims.

Following modifications are under Following modifications are under consideration of the Governmentconsideration of the Government

Reduction in Unit Area.Reduction in Unit Area.

Stepping-up of the indemnity level.Stepping-up of the indemnity level.

Revision of the formula for assessing the Revision of the formula for assessing the Threshold Yield to make it more realistic.Threshold Yield to make it more realistic.

To increase the scope of NAIS to cover To increase the scope of NAIS to cover prevented sowing due to adverse monsoon.prevented sowing due to adverse monsoon.

To extend the scope of NAIS to cover post To extend the scope of NAIS to cover post harvest losses due to cyclone, heavy rains, and harvest losses due to cyclone, heavy rains, and unseasonal rains resulting in damage of the unseasonal rains resulting in damage of the harvested crop.harvested crop.

Contd…Contd…

To make on-account payment of about To make on-account payment of about 50% claims on the basis of rainfall data.50% claims on the basis of rainfall data.

To extend Personal Accidental Insurance To extend Personal Accidental Insurance Cover under NAIS.Cover under NAIS.

To extend Package of Insurance cover To extend Package of Insurance cover such as cattle Insurance, tractor such as cattle Insurance, tractor insurance, house insurance etc.insurance, house insurance etc.

Action initiated for Redesigning of Action initiated for Redesigning of Crop Insurance SchemeCrop Insurance Scheme

Review meeting on the implementation of Pilot Review meeting on the implementation of Pilot Project on Farm Income Insurance Scheme (FIIS) Project on Farm Income Insurance Scheme (FIIS) was convened on 26 & 27 March, 2004.was convened on 26 & 27 March, 2004.

A meeting with State Government of A meeting with State Government of Maharashtra and representatives of the farming Maharashtra and representatives of the farming community was held on 7community was held on 7thth June and 20 June and 20thth July, July, 2004 respectively to improve NAIS.2004 respectively to improve NAIS.

To make use of the available expertise and to To make use of the available expertise and to involve the private sector insurance companies a involve the private sector insurance companies a presentation meeting was convened with major presentation meeting was convened with major Private Insurance Companies on 04.09.2004.Private Insurance Companies on 04.09.2004.

A Joint Group has been constituted to study the A Joint Group has been constituted to study the improvements required to be made.improvements required to be made.

CO-OPERATIONCO-OPERATION

Amendment to the ConstitutionAmendment to the Constitution

ConstraintsConstraints

The Co-operative Sector, in spite of its voluminous The Co-operative Sector, in spite of its voluminous

growth and its significant contribution to various sectors of growth and its significant contribution to various sectors of

national economy is beset with several constraints, such national economy is beset with several constraints, such

as:as:

Elections are not held regularly.Elections are not held regularly. Supersession of Board of Directors and appointment of Supersession of Board of Directors and appointment of

Administrators for undue longer period.Administrators for undue longer period. General Body meetings are not held regularly.General Body meetings are not held regularly. Audit is not professional. It is also not conducted in time.Audit is not professional. It is also not conducted in time. There is undue and unnecessary political interference and There is undue and unnecessary political interference and

bureaucratic control even in their day-to-day affairs.bureaucratic control even in their day-to-day affairs. Unprofessional management leading to high operational Unprofessional management leading to high operational

cost and delayed delivery of services to members. cost and delayed delivery of services to members. Lack of member participation.Lack of member participation. Poor system of monitoring and inadequate checks and Poor system of monitoring and inadequate checks and

balances.balances.

Due to these constraints:Due to these constraints:

Heavy erosion in their democratic and autonomous Heavy erosion in their democratic and autonomous

functioning.functioning. Most of the grassroots co-operatives are not self-Most of the grassroots co-operatives are not self-

reliant and heavily dependent on Government reliant and heavily dependent on Government

Assistance.Assistance. Management not responsive to the needs of the Management not responsive to the needs of the

members and not truly accountable to them.members and not truly accountable to them. Sickness is increasing resulting in large number of Sickness is increasing resulting in large number of

defunct / dormant societies.defunct / dormant societies. Co-operatives are not well equipped to face the Co-operatives are not well equipped to face the

challenges of open and competitive market oriented challenges of open and competitive market oriented

economy. As a result, they are not only loosing economy. As a result, they are not only loosing

ground in their traditional areas of activities but also ground in their traditional areas of activities but also

unable to enter into new ventures.unable to enter into new ventures.

Initiatives taken by the Central GovernmentInitiatives taken by the Central Government

Planning Commission appointed Braham Perkash Committee to Planning Commission appointed Braham Perkash Committee to

recommend a model legislation for guidence of the State recommend a model legislation for guidence of the State

Governments.Governments.

Braham Perkash Committee recommended a ‘Model Co-Braham Perkash Committee recommended a ‘Model Co-

operatives Act’, which was circulated to all States.operatives Act’, which was circulated to all States.

The ‘Model Co-operatives Act’ was discussed in Conference of The ‘Model Co-operatives Act’ was discussed in Conference of

State Co-operative Ministers held in July 1992.State Co-operative Ministers held in July 1992.

The Conference agreed in principle with the recommendations The Conference agreed in principle with the recommendations

of the Committee.of the Committee.

Conference was of the view that Central Government might Conference was of the view that Central Government might

take a lead by amending Multi-State Co-operative Societies Act, take a lead by amending Multi-State Co-operative Societies Act,

1984.1984.

The Multi-State Co-operative Societies Act, 1984 has since been The Multi-State Co-operative Societies Act, 1984 has since been

replaced by Multi-State Co-operative Societies Act, 2002. replaced by Multi-State Co-operative Societies Act, 2002.

The basic role of Government is to provide a legislative and The basic role of Government is to provide a legislative and

policy framework conducive for development of co-operatives.policy framework conducive for development of co-operatives.

The Central Government have initiated several measures The Central Government have initiated several measures

including enunciation of a National Policy on Co-operatives including enunciation of a National Policy on Co-operatives

and enactment of Multi-State Co-operative Societies Act, and enactment of Multi-State Co-operative Societies Act,

2002.2002.

State Co-operatives are governed under the Co-operative State Co-operatives are governed under the Co-operative

Societies Acts enacted by the State Governments.Societies Acts enacted by the State Governments.

State Acts still provide a rigid regulatory regimeState Acts still provide a rigid regulatory regime

Many State Governments are reluctant amend their Acts to Many State Governments are reluctant amend their Acts to

liberalize the control regime.liberalize the control regime.

This calls for a Constitutional Amendment to address the This calls for a Constitutional Amendment to address the

problems of the State Co-operatives and also to bring problems of the State Co-operatives and also to bring

uniformity in control and governance these co-operatives.uniformity in control and governance these co-operatives.

UPA Government has highlighted the need for a Constitution UPA Government has highlighted the need for a Constitution

Amendment in Co-operative in the “National Common Minimum Amendment in Co-operative in the “National Common Minimum

Programme”Programme”

One of the options can be to bring a constitutional Amendment on One of the options can be to bring a constitutional Amendment on

the lines of 73rd Constitutional Amendments, keeping co-operative the lines of 73rd Constitutional Amendments, keeping co-operative

a state subject a state subject

The constitutional amendment is to be limited to the three key The constitutional amendment is to be limited to the three key

elements for the empowerment of co-operatives - elements for the empowerment of co-operatives - ““voluntary”, voluntary”,

““democratic” and democratic” and

““autonomous” autonomous”

And the three rights of co-operatives - And the three rights of co-operatives - ““the right to elections”, the right to elections”,

““the right to autonomous management” and the right to autonomous management” and

““the right to independent professional audit”.the right to independent professional audit”.

The Amendment is Proposed to coverThe Amendment is Proposed to cover::

timely conduct of elections;timely conduct of elections; maximum time limit for supersession of a managing maximum time limit for supersession of a managing

committee;committee; timely conduct of audit;timely conduct of audit; uniform tenure of managing committee;uniform tenure of managing committee; regularly and timely conduct of general body meetings;regularly and timely conduct of general body meetings; right of a member for access to informationright of a member for access to information audit of the Central and Apex societies by the qualified audit of the Central and Apex societies by the qualified

auditorsauditors compulsory system of filing returnscompulsory system of filing returns provisions for offences and penalties.provisions for offences and penalties.

A meeting of Registrar of A meeting of Registrar of

Co-operative Societies is Co-operative Societies is

proposed to be held in proposed to be held in

Mid-October 2004Mid-October 2004

A Conference of State Co-A Conference of State Co-

operative Ministers to discuss operative Ministers to discuss

the Constitutional Amendmentsthe Constitutional Amendments

To be followed byTo be followed by

Co-operative Education and TrainingCo-operative Education and Training

The Central Sector Scheme for Cooperative The Central Sector Scheme for Cooperative

Education and Training has been in operation since Education and Training has been in operation since

the Third Five Year Plan. The Scheme is implemented the Third Five Year Plan. The Scheme is implemented

through National Co-operative Union of India (NCUI) through National Co-operative Union of India (NCUI)

and National Council for Co-operative Training and National Council for Co-operative Training

(NCCT). This scheme is proposed to be restructured (NCCT). This scheme is proposed to be restructured

in view of the observation of Planning Commission in view of the observation of Planning Commission

and findings of the Evaluation Study sponsored by and findings of the Evaluation Study sponsored by

Ministry of AgricultureMinistry of Agriculture..

The State Governments may consider to The State Governments may consider to provide adequate budgetary provisions to provide adequate budgetary provisions to State Co-operative Unions for conducting co-State Co-operative Unions for conducting co-operative education and training programmes.operative education and training programmes.

The State Governments should sponsor The State Governments should sponsor adequate number of candidates from Co-adequate number of candidates from Co-operative Departments / Co-operative operative Departments / Co-operative Organisations to undergo training programmes Organisations to undergo training programmes conducted by VAMNICOM / RICMs / ICMSs.conducted by VAMNICOM / RICMs / ICMSs.

The State Governments may watch The State Governments may watch implementation of Co-operative Education implementation of Co-operative Education Field Projects sponsored by the Government Field Projects sponsored by the Government of India and implemented by NCUI.of India and implemented by NCUI.

The scheme aims at providing training to The scheme aims at providing training to

the Senior and Middle level personnel of the Senior and Middle level personnel of

State Governments and co-operative State Governments and co-operative

institutions in the country and education in institutions in the country and education in

co-operative techniques and principlesco-operative techniques and principles to to

office bearers, members of co-operatives in office bearers, members of co-operatives in

particular and to spread co-operative particular and to spread co-operative

awareness in the public at large. awareness in the public at large.

Object of the SchemeObject of the Scheme

Funding patternFunding pattern 100% grants-in-aid is provided to NCCT for 100% grants-in-aid is provided to NCCT for

conducting training programmes.conducting training programmes. 100% grants-in-aid is provided to National Co-100% grants-in-aid is provided to National Co-

operative Union of India (NCUI) for operative Union of India (NCUI) for implementing special scheme of implementing special scheme of “Intensification of Cooperative Education “Intensification of Cooperative Education (through field projects) in Cooperatively (through field projects) in Cooperatively Under-developed States”Under-developed States”

20% grants-in-aid is provided to NCUI for 20% grants-in-aid is provided to NCUI for approved activities like; education approved activities like; education programmes for youth and women, publication programmes for youth and women, publication of books and running Data Bank and National of books and running Data Bank and National Centre for Co-operative Education(NCCE).Centre for Co-operative Education(NCCE).

Separate allocation for N.E. Region States both Separate allocation for N.E. Region States both for Co-operative Education and Training.for Co-operative Education and Training.

Organisational structureOrganisational structure

Co-operative EducationCo-operative EducationCo-operative Training

F\Governmentof India N C U I

N C C T

VAMNICOM

RICMs [5]

ICMs [14]

J unior CooperativeTraining Centres

[92]

State Co-operativeUnions [27]

Governmentof India

N C U I

N C C E(Approved Activities)

FieldProjects [50]

State Co-operativeUnions [27]

PROPOSED FUNDING PATTERN PROPOSED FUNDING PATTERN DURING THE 10DURING THE 10TH TH PLAN.PLAN.

Block grant pattern to be adopted for cooperative Block grant pattern to be adopted for cooperative training programmes.training programmes.

Corpus fund of Rs.200 crores to be created for Corpus fund of Rs.200 crores to be created for training in next 5 years. Government of India will training in next 5 years. Government of India will provide Rs.100 crores on matching basis. Balance provide Rs.100 crores on matching basis. Balance Rs.100 crore to be mobilized by the NCUIRs.100 crore to be mobilized by the NCUI

Grants would be reduced in proportion to the income Grants would be reduced in proportion to the income generated out of the corpus fund during the generated out of the corpus fund during the interregnum.interregnum.

For co-operative education field projects (special For co-operative education field projects (special schemes), grants-in-aid will be provided on sunset schemes), grants-in-aid will be provided on sunset basis with 20% reduction every year commencing basis with 20% reduction every year commencing from the year 2004-2005.from the year 2004-2005.

Financial Outlay - 10th PlanFinancial Outlay - 10th Plan

SlNo.

Name of the Scheme10th plan Total Outlay

2004-05

1. COOPERATIVE TRAINING

(i) Cooperative Training

(ii) Contribution towards Building fund

(iii) Contribution towards Corpus Fund.

70.00

3.00

100.00

12.75

40.00

Sub Total-1 173.00 52.75

2. COOPERATIVE EDUCATION (i) Approved activities

(ii) Special Scheme4.05

19.80

0.85

4.40

Sub Total-II 23.85 5.25

3.

4.

Assistance to CICTAB

Assistance to JCTCs.

0.35

33.80

0.07

7.00

Total 231.00 65.07

* Scheme implemented by the Credit Division

Basic Mandate of Basic Mandate of NCDCNCDC• NCDC was set up in March 1963 for planning

and promoting countrywide programmes of co-operative activities, on co-operative principles.

• The NCDC is engaged in the co-operative sector development for production, processing, marketing, storage, export and import of: Agricultural Produce;

foodstuffs;

fishery, poultry, sericulture, handlooms, dairy

SC/ST co-operatives; cont..

industrial goods;

livestock.

Notified Services

Water conservation works / services, irrigation, micro-irrigation in rural areas;

Animal care / health, disease prevention;

Agricultural insurance and agricultural credit; and

Rural sanitation / drainage / sewage systems.

Specific Scheme being Specific Scheme being implemented by NCDCimplemented by NCDC

NCDC implements “Central Sector Plan NCDC implements “Central Sector Plan

Scheme of assistance to NCDC Scheme of assistance to NCDC

programmes for co-operative programmes for co-operative

development”.development”.

Components of SchemeComponents of Scheme1.1. Assistance for Co-operative Marketing, Processing, Storage Assistance for Co-operative Marketing, Processing, Storage

Programmes in cooperatively under / least developed States / UTs;Programmes in cooperatively under / least developed States / UTs;

2.2. Share Capital Participation in Growers’ Co-operative Spinning Share Capital Participation in Growers’ Co-operative Spinning Mills;Mills;

3.3. Integrated Co-operative Development Projects (ICDP) in selected Integrated Co-operative Development Projects (ICDP) in selected districts;districts;

4.4. The existing scheme of Assistance to National Co-operative The existing scheme of Assistance to National Co-operative Federations currently implemented directly by DOAC is also Federations currently implemented directly by DOAC is also proposed to be implemented through NCDC;proposed to be implemented through NCDC;

5.5. Rehabilitation of Co-operative Processing Units (New Component Rehabilitation of Co-operative Processing Units (New Component for Xth Plan); andfor Xth Plan); and

6.6. Assistance for Development of Women Co-operatives (New Assistance for Development of Women Co-operatives (New Component for Xth Plan).Component for Xth Plan).

Outlay Proposed - Rs. 240.24 crores Outlay Proposed - Rs. 240.24 crores

for the Xth Plan Periodfor the Xth Plan Period

Pattern of FundingPattern of Funding Grants component is given by Grants component is given by

Government of India.Government of India.

Loan Component is made available Loan Component is made available

by NCDC on its own.by NCDC on its own.

Prior to Xth Plan Loan component Prior to Xth Plan Loan component

was also provided by the was also provided by the

Government of India.Government of India.

THANKSTHANKS