Poultry Business

7/29/2019 Poultry Business

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N A B A R DNEWSLETTERVOL. - 5 OCTOBER 1996 NO. 7

DEVELOPMENT OF POULTRY INDUSTRY THROUGH TECHNOLOGY AND CREDIT

Poultry farming which was considereda mere backyard activity only a fewyears ago in India has now taken theshape of a thriving industry, providingquality human food, organic manure foragricultural crops and employment toa large number of people. Poultryindustry provides direct and indirect

employment to about one million andfour million persons respectively. Thevalue of poultry products in 1993estimated at Rs. 63,400 million is likelyto reach Rs. 1,09,360 million by 1998.The industry has also given rise tomany subsidiary industries in the fieldof compounded feed, equipment andpharmaceuticals. During the lastdecade, the production of eggs andbroilers is estimated to have grownannually at the rate of about 10% and20% respectively.

Present Status

As per 1987 livestock census, the"ooultry population in India was 251million of which 61 million comprisedof improved birds. Of the estimatedlaying stock of 150 million during 1993,the improved stock was about 56 percent. The total egg production of 5340million in 1971 has grown to 26,300million in 1994, keeping India in the fifthposition in table egg production in theworld. The contribution of improved

birds to total egg production is about75 to 80 per cent. The productioncapacity of improved layers has alsoincreased from 250 eggs in 1971 toabout 290 eggs in 1993 under optimumconditions.

The broiler production which was only4 million in 1971 has gone up presentlyto about 275 million in the same period.This clearly indicates the phenomena!growth in the broiler industry during thelast 25 years. The average feed

efficiency which was about 2.6 : 1 hasnow come down to 2.2 - 2.3 : 1. Thebirds would reach the desired bodyweight of 1.5 kg. in about 8 weeksearlier whereas now this period throughgenetic improvements and feedefficiency, has come down to anaverage of 6 weeks.

Structure

As in several other developingcountries, the poultry sector in Indiaalso reflects the dualism of intensiveand backyard poultry productionsystems. With reference to theintens've production system, attentionis already being paid mostly by theprivate sector to improve the availabilityof quality chicks and other inputsupplies like poultry feed, health care,marketing, storage and infrastructural

facilities in order to produce qualityeggs and meat which could competein the international market, besidescatering to the growing domesticdemand. It is estimated that 60% ofpoultry meat and 56 % of eggs arecurrently produced under IntensiveProduction System. About 60,000farms are under intensive system.

The backyard poultry segmentrepresents about 407o of the outputand has a direct bearing on the incomeand employment opportunities of theweaker sections, especially ruralwomen. There are about 1,00,000farmers scattered in rural areas withflocks ranging from 25 to 250 birds intheir backyard.

Supply and Demand

Despite the fact that India is the fifthlargest egg producer in the world, theper capita egg and poultry meatconsumption is one of the lowest i.e.,33 eggs and 434 gm. of poultry meat

per year, as against around 200 egand 15 kg poultr/ meat in many of tdeveloped countries.

Keeping in view the recommendatioof the National Institute of NutritioIndian Council of Medical Researchis estimated that by 2015, the domesrequirement could be 183 billion egand 9.1 billion kg. poultry meat, consumption level of 180 eggs andkg poultry meat per capita per yewhile the production will be 46.2 billieggs and 3.04 billion kg. poultry meThis points to a substantial gap aavailable potential for growth in tcurrent decade. There is a large rumarket of over 500 million people whhas largely remained untapped .

Development of Input Industry:Birds

The poultry farmers in India are rearialmost all well known commercbreeds of USA, UK and Europe. Aboa dozen of pureline and grand parefranchise projects supported with 1layer and 280 broiler parent farms the private sector and 200 government se or, produce 1.3 milllayer and 2.6 million broiler parents

WORLD POULTRYCONGRESS ANDEXHIBITION

The World Poultry SciencAssociation organised WorPoultry Congress and exhibition aNew Delhi during 2 - 8 Septembe1996. A paper on 'Development oPoultry Industry throughTechnoloand Credit' was presented at thcongress on 5 th September bDr. K R Rao, DGM, (Tech.) obehalf of Shri P Kotaiah, Chairman


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Feed

The annual production of poultry feedexceeds 5 million tonnes. Bulk of thisis produced on the farms and thebalance by the large feed plants. Thefeed industry is increasingly relying onresearch and use of computers forworking out low cost feed formulations.The need of farmers is a network oflaboratories for quick testing facilitiesto monitor the quality of feed and

ingredients including level ofcontaminants like aflatoxins etc.

Pharmaceuticals

The veterinary pharmaceutical industryhas kept pace with the rapid growth ofpoultry sector by providing medicinesand vaccines to ensure sound healthof birds reared under intensive systemof poultry production. The number ofunits supplying medicines andvaccines rose from about 2000 in 1971to around 10,000 in 1993 with a turnover of about Rs. 3000 million.

Equipment

India is self-sufficient in all basicequipment required for rearing andbreeding poultry. Gas brooding,automatic feeding and wateringsystems, foggers and sprinklers,electronic control setters and hatchers,controlled environmental housing andslat as well as cage system of rearingare becoming popular in case of large

size commercial farms.

Training

The Agricultural Universities and theCentral Avian Research Institute,Izatnagar, Uttar Pradesh is providingnecessary courses for obtaininggraduation in veterinary science andpost graduation in veterinary sciencewith specialisation in poultry to meetthe requirements of the industry. TheCentral Poultry Training Institute atHessarghatta, near Bangalore and theInstitute of Poultry Management ofIndia (IPMI), Pune are providingtraining to the entrepreneurs as wellas technicians working in the poultrysector. The Department of AnimalHusbandry of State Governmentsthrough their poultry training centresestablished under Intensive PoultryDevelopment Blocks are providingextension support and also shortduration training programmes for thenew entrepreneurs.

Exports

Although India has emerged as a majorpoultry producing country, itscontribution in the international tradeis negligible. However, the export ofpoultry & poultry products is expectedto reach about Rs.2000 million in thenext 5 years with India's entry intopoultry processing and allied industries.The potential importers of poultryproducts could be Bangladesh,Maldives, Philippines etc.

Planning

The National Bank for Agriculture andRural Development (NABARD) as anapex financial institution, is concernedwith policy, planning, development,monitoring and supervision in the fieldof agricultural credit and othereconomic activities including poultrydevelopment. NABARD is preparingPotential Linked Credit Plans (PLPs)for various investments. These plans

are prepared district-wise and lateraggregated at state level. Whilepreparing the plans, care is taken tolook into the available infrastructuralfacilities like supply of chicks, feed,medicines and vaccines, marketing,entrepreneurship and the creditabsorbing capacity. The exercise helpsin planning the credit requirements forthis sector and its close monitoring.

Credit and Development

The term loan and working capitalrequirements of the industry arenormally provided by commercialbanks, regional rural banks, statecooperative banks and state landdevelopment banks. The cumulativerefinance assistance of NABARD till1994-95 for poultry was of the order ofRs. 5230 million, involving a groundlevel investment of roughly aboutRs.10,460 million.

There is considerable response topoultry development and institutional

finance in some of the states likeAndhra Pradesh, Maharashtra,Karnataka, Punjab, Haryana andTamilnadu. Some of the states likeUttar Pradesh, Madhya Pradesh andBihar which have a very large humanpopulation and considerable potentialfor poultry development have notdeveloped poultry sector and henceflow of institutional credit for thepurpose is also not much. It isnecessary to tap this potential.

NABARD had estimated that during t8th five year plan (1992-97), the groulevel disbursement of credit by banfor poultry development would Rs.13,359 million. The ground levinvestment credit is expected to grofrom the present Rs.2900 million pannum to Rs.13,000 million per annuby 2010.

In addition to supporting dire

investment in poultry units of layebroilers and hatcheries, refinansupport has also been extended NABARD to production of specipathogen free (SPF) eggs, poultvaccines, health products and feechicken processing and furthprocessing into value-added products, e

Bank financing is subject to complianof various technical and financial termlike floor spacing, flock schedule, bsecurity, spacing between the shedBesides, the sanction of loan is subje

to contribution by the individuborrowers to the project cost varyinfrom 5% to 15% depending on tcategory of beneficiaries. In the caof firms or corporate bodies the deequity ratio is kept at 3:1. Threpayment period for loans depenupon the net surplus generated in tscheme and usually the period rangbetween 6 and 8 years with a graperiod of 6 to 18 months. The rate interest on loans will be as prescribeby Reserve Bank of India/NABAR

from time to time. The banks woutake security from the ultimaborrowers as prescribed by tReserve Bank of India.

Technological advancement

poultry industry

Some of the technologicdevelopments in the poultry industryIndia for which NABARD has extendfinancial support. Can be grouped in5 major areas viz., poultry breedinhousing and management, processin

marketing and environment.

Poultry Breeding

Import of pureline and grand parenfrom the western countries adeveloping strains which are suitabfor Indian conditions has beencouraged through financassistance. In some of the hatcheschemes, modernised incubators habeen considered for production of d


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old chicks which have distinctadvantages like minimum requirementof space and labour, saving in electricityconsumption, better quality of chicksand increased number of chicks perbird over conventional/ traditionalincubators.

Housing and Management

The cage system for layers and the slat

system for broiler rearing areincreasingly encouraged. Gas broodingof chicks which is cost effective hasbecome popular under environmentallycontrolled system of housing and thesame has been adopted, it has theadvantage of utilising the poultrydroppings for gas production. In areaswhere the temperature goes beyond40C and spreads over a longer periodsprinklers on the top of the sheds,foggers within the sheds and theenvironmentally controlled mechanismin the form of cooling pads, exhaust

fans and winching system of curtainshave been incorporated in the projectsso that optimum temperature can bemaintained in the sheds.

Processing Technologies

The technological development hashelped the egg producers to processeggs into powder/frozen form forvarious uses. For this, processingplants are set up in the country withbank finance. The processing of eggsinto various forms help the farmers totide over fluctuations in egg prices asalso to increase the shelf life. With the

.^changing food habits especially inurban areas, the demand for valueadded products/convenient foods frompoultry is increasing. NABARD hasrefinanced for setting up of poultrydressing plants with backwardintegration with producers and forwardintegration with consumers. Thisprocessing includes preparation ofwhole chicken, cut-ups, bonelesschicken and further processing into

products like kababs, patties, soups, etc.

Marketing

In order to promote consumption ofeggs in rural, semi-urban and urbanareas as also to provide employmentto the educated and handicappedpersons for earning a livelihood, thepurchase of egg/broiler carts throughbank finance is encouraged.

Technologies for environmental

protection

While financing various activities underpoultry industry, care is taken to ensurethat they do not in any way causeenvironmental degradation by strictlyfollowing the standard norms in respectof removal of various wastes, (solid aswell as liquid) and convert them intousable by-products. The solid wastes

are economically converted into usableproducts through rendering processwithout creating any environmentalpollution, whereas liquid wastecomprising blood, detergents andchemicals are treated in effluenttreatment plants before releasing theminto water bodies.

In respect of chicken meat processingplants, the provision of rendering planthas been incorporated to convert theinedible parts of poultry like viscera,inedible meat, bones etc. into meal

which is used as an ingredient in thelivestock feed, while the poultryfeathers are used for manufacturingshuttle cocks and also for extractionof amino acids which are eco-friendly.As supply of quality water free frombacterial and other solid substances isessential for poultry, the watersoftening/treatment plants areconsidered in the poultry projects.

Resear ch and Developm ent

support from NABARD

NABARD is supplementing the

Research and Development efforts of

State Agricultural Universities and

ICAR institutes by sanctioning R & D

assistance for the applied research

work through which poultry farmers are

benefited in terms of higher productivity

or saving in investment/expenditure. has identified a few areas of researchsuch as cost effective poultry housinfor different agro-climatic conditionsuse of alternative feed ingredients the poultry rations, extraction of aminacids from poultry feathers, use opoultry droppings in livestock feeds anbiofertilisers.

Some of the R & D projects bein

supported by NABARD in the field opoultry science are as under :-

a. Investigation into the problem of Eg

Drop Syndrome (EDS) in layers an

development of vaccine.

b. Establishing training and researcactivities at the Institute of PoultrManagement of India.

c. Socio economic upliftment of ruraduck farmers through crossbreeding iAndhra Pradesh.

In addition to these research projectssupport is also extended for conductin

workshops/conferences/seminars b

the poultry and feed associations fo

the benefit of scientists, farmers an

planners.

Prospects for future

Viewed against the backdrop of thtremendous potential yet to be tappein the poultry sector, notwithstandinthe developments made in the pasthree decades or so as also th

emerging scenario brought about bthe GATT Agreement coupled with thnew and bold policies of Governmenof India in the context of economliberalisation, the poultry industry India is poised for a quantum leap the 21st centuiy.

MOTOR VEHICLE ASPROJECT COMPONENTin respect of motor vehicles beingaquired for transporting raw materialsand finished goods, it has beendecided to include it as one of theproject components of the IntegratedLoan Scheme within the overall projectoutlay stipulated.However thefinancing bank will have to ensureamong other things that the cost of thevehicle is not unduly large and thefacility should be extended as anintegral part of integrated LoanScheme

REDF

The Entrepreneurship Developmeninstitute of India, Ahmedabad has bee

sanctioned grant assistance of R24.375 lakh for conduct of twenty fivRural Entrepreneurship DevelopmenF'rogrammes through VAs/ NGJOSdifferent states.

RTCs RENAMEDit has been decided to rename thregional training centres at Bolpur anMangalore as l^^egional TraininColleges.


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RURAL INFR/l^muCTURE

The Union Budget 1995-96 hadestablished the Rural InfrastructureDevelopment Fund (RIDF) within theNABARD for the completion of the ongoing rural infrastructure projects. Thefund with an initial corpus of Rs 2000crore was to be made up ofcontributions from all scheduled

commercial banks, excluding foreignbanks, operating in India, to the extentof their shortfall in the target foragricultural lending to the prioritysector, subject to a maximum of 1.5percent of net bank credit.

Under the fund, NABARD during theyear ended 31 March1996, sanctionedRs 1984 crore to 2489 different projectsin 19 states. The irrigation projectsfinanced under the fund are expectedto increase irrigation potential by 2047lakh ha. and generate recurr ing

employment of 1755 lakh mandays.

The Union Finance Minister whilepresenting the Budget for 1996-97 hascontinued with the RIDF with anenhanced corpus of Rs. 2500 crore.The salient features of which aredetailed below:

The purposes covered under RIDF Iviz. projects in the irrigation sector,watershed development, soilconservation and rural infrastructurewould continue to have the priority in

sanction of projects under the RIDF II.In addition the projects in the followingsectors may be considered

i) Rural roads (black top) andbridges,

ii) Watenways - modernisation ofexisting waterways fortransportation of agricultural andindustrial products,

iii) Integrated cold chain projects withrelevant infrastructure,

iv) Integrated market yard projectswith godown, cold storagefacilities etc.

The special feature of RIDF 11 is that inaddition to the ongoing projects, newprojects will also be considered for loanassistance.

Projects which could be completedbefore March 99 may be consideredfor sanction with priority given to

IT IHHiD II

projects with a shorter gestation period.

The loan assistance will be restrictedto 50 % of the revised project cost orthe balance cost which ever is less forall ongoing projects. Smaller projects,where balance cost does not exceedRs. One crore may be considered forhigher percentage of assistance even

upto 80% on a case to case basis.

In the case of new projects, consideringthe funds constraints with the stategovernments, the percentage of loanscould be as high as 90% of the totalcost. If however, the state governmentis unable to provide any contribution inthe first year, the RIDF loan could cover100% of the cost in the first year whilethe state government could meet itsshare of the total cost of not less than10% of the total cost in the remainingperiod of the project.

The rate of interest to be paid byNABARD on deposits to banks underRIDF 11 shall be a fixed rate of11.5% p.a.

The interest is payable to banks onthese deposits at quarterly rests.

The loan assistance to StateGovernment will be available at a fixedrate of 12% from NABARD.

The interest will be paid by the stategovernment to NABARD at quarterlyrests.

SANCTIONS

The project sanctioning committee atits ninth meeting sanctioned loansaggregating Rs. 363.64 crore underRIDF II to four states viz. AndhraPradesh ( Rs. 10.52 crore), MadhyaPradesh (Rs.133.50 crore),Maharashtra ( Rs. 185.85 crore) andOrissa ( Rs.33.77 crore).

These sanctions cover 182 projects

which include 3 major irrigationprojects, 11 medium irrigation projects,143 minor irrigation schemes and 25rural bridges. These projects oncompletion would bring 1.60 lakhhectares of additional area underirrigation and generate 147 lakhmandays of recurring employment.The expected annual increase in thevalue of output in the area of theseprojects is expected to be about Rs.154crore.

FARIVI MECHANISATION POLICY

NABARD has allocated refinance of 600 crores for farm mechanisatprogramme for 1996-97.

This allocation will cover the activitof financing tractors/power tillethreshers/sprayers etc.

The terms and conditions govern

refinance support under tprogramme are as under: -

In extending support to famechanisation programme, preferenwill be given for financing power tillwhere the investment cost comparatively low.

Refinance assistance for financthreshers and sprayers whether as implement of tractor/power tiller separately may be provided unautomatic refinance facility for fa

mechanisation purposes.No separate limit has been fixed for renovation / repairs / replacementspare parts etc. of tractors and refinance availed of for this purpose be adjusted within the programallotted to each bank subject maximum of 10% of the famechanisation programme. In the cof loans extended for the purchasetractors for the second time quantum of refinance will be 40%the loan amount

While cooperative banks and regiorural banks can avail of refinanagainst loans extended by them inthe states commercial banks will eligible for refinance assistance onlyBihar, Orissa and the North EastRegion (NER).

The refinance assistance for financfarm mechanisation programmedifferent regions/states

Region/State Refinance as % obank loan

CBs SCBs LDBs RR

NER 90 90 95 95

Bihar & Orissa 50 50 95 60

MP & Eastern UP - 50 95 60

Other States - 50 75 60


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VVOriKiihJG GFiOUiP ON PIEFiSPEECTIVE PLAN FORPOULTRY FINANCING (1995 2005)

The working group under theChairmanship of Shri P.V. A. RamaRao, Executive Director, NABARDconstituted by NABARD for evolving astrategy for the development of poultrysector in the country has finalised itsreport. The group comprises of

representatives from GOI, PoultryIndustry, Research Institutes,Commercial Banks and top officials ofNABARD.

The working group's observationsreveal that the Indian poultry industryis poised for higher growth which isexpected to be 8-15% for layers and10-20% in case of broilers. The studyestimates have projected thecommercial layer population at 249.60million and commercial broilerpopulation at 2109.25 million by 2005

AD. It is expected that 67400 millioneggs would be produced by the end of2005 AD.

The working group was directed tostudy and review the existing status ofpoultry industry, ascertain the state/central government plans for poultrydevelopment, identify the constraintsfor regional imbalance and suggest anappropriate strategy for solving theissues, quantifying the gap ininfrastructural facilities and suggestways for improving the position,prepare perspective credit plan forpoultry development for the nextdecade keeping in view the demandfor eggs and meat and identifyproblems relating to provision of creditby financial institutions.

The constraints identified by theworking group include high feed cost,escalation of cost of production due tothe exports of oil cakes and soyaextractions without giving dueconsiderations for domestic

requirements, non-availability of qualitypoultry vaccines and medicines inadequate quantities, non-availability ofautomatic type of processingequipment for gees and poultry meat,egg grading equipment and qualityfeeding systems, inadequate practicaloriented training establishments to trainthe entrepreneurs and in servicepersonnel, lack of organised marketingstructure and inadequate efforts forbuilding infrastructural facilit ies for the

export of poultry products and lack ofreliable date base.

The working group has felt there isgood potential for layer hatcheries inthe states of Maharashtra, Gujarat andAndhra Pradesh. Except North EasternStates all other states are having good

potential for broiler hatcheries. Theestimated investment potential forpoultry sector during 1995-96 is Rs.498.56 crores and it is expected toincrease to Rs. 3258.44 crores. Theground level investment and bankcredit requirement during plan period(1995-2005) works out to Rs. 1520.56crores and Rs. 9435.17 croresrespectively.

In the coming years, processing andmarketing activities with induction of

innovative/advanced technologieswould be playing pivotal role instrengthening the poultry industry.Important processing, marketing andhi-tech schemes identified by theworking group are egg/broiler carts,small dressing plants, egg processingplants, broiler processing plants, coldstorages and feed mixing plants forurban areas. The total ground levelinvestment and bank creditrequirements for processing, marketingand hi-tech schemes during 1995-2005works out to Rs. 3268.54 crores and

Rs. 1963.96 crores respectively.

The major strategies suggested for thegrowth of poultry industry in India areencouragement to entrepreneurs forestablishment of poultry productionactivities in less developed areas,captive feed plants for bigger poultryunits to reduce the cost of production,provision of cash credit facility to needypoultry farmers, linking of therepayment period and the grace periodwith the cash flow generated by the

unit, encouragement of exports ofpoultry products, monitoring of diseaseout breaks and provision of diagnosticfacilities, review of the existinginsurance policies in terms of premium,compensation to be paid, diseases tobe covered and simplification of theprocedures for settling the claims,establishment of the apex agency atnational level for overall monitoring anddevelopment of poultry sector in thecountry.

ASSISTANCE FOR RURAINDUSTRIESExpansion / Diversification IVIodernisation/Renovation existing units

Refinance facilities from NABARD

banks for financing modernisatio

renovation/expansion/diversification

existing units under the automa

refinance facility will be eligible for tfollowing:

replacement of old and obsole

machinery which should ha

been in use for a period of atlea

5 years.

acquis it ion of balanci

equipment for fuller and mo

effective utilisation of the install

capacity

change over to new process

manufacturing/introduction

new technology/computerisatietc.

expansion/diversification shoube by way of acquisition of nemachinery and equipmeresulting in additional producticapacity and/or improviproductivity or introducing a neproduct/line etc. Any unit whiis in existence for atleast 2 yeawill be eligible for expansiodiversification.

The total cost of investment in plaand machinery including that

modernisation/renovation/expansio

diversification of the existing unit to

finance should not exceed the SSI lim

Refinance will be made availabirrespective of whether the unit winitially financed by the bank or not.

NFS - DELINKING OF BANK

LOAN WITH REFINANCE

Under the Integrated Loan Scheme tceiling on bank loan of Rs. 10 lakwas prescribed for projects with outlnot exceeding Rs. 15 lakhs.

It has been now been decided to delibank loan under the Integrated LoScheme with NABARD refinance.Ththe bank loan could be more thRs. 10 lakh. However the refinanunder Integrated Loan Scheme wcontinue to be restricted to a maximuof Rs 10 lakh.


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JATROPHA A PROMISING CROP FOR WASTELANDS AFFORESTATION- Dr. M.S. HAQUE, DGM (TSD

INTRODUCTION

Jatropha Curcus is a plant that cangrow almost everywhere from gravelly,stony, sandy to alkaline soils. Its waterrequirement is also very low and canwithstand long periods of drought,

shedding most of its leaves, whichagain enriches the soil by formingorganic manure.

Although the plant is well known sincelong, it has come into prominence onlyrecently because of its capability as apotential oil crop. The oil extractedfrom its seeds contain 21% saturatedfatty acids and 79% unsaturated fattyacids. The results of testing of dieselengines run on Jatropha oil have beenencouraging and it has the potential tobe used as a substitute to diesel and

kerosene.

The oil has a very high saponificationvalue and is extensively used in Indiaand other countries for soap making.Besides its medicinal values andalthough at present the oil is inedible,the day is not far off when it could beused for human consumption as well.

Since the plant is a renewableresource, it can earn foreign exchangeas well and can generate unlimitedemployment opportunities in rural

areas, it has been identified as apotential agro-forestry crop too.

India has about 75 million Ha.wastelands requiring immediateattention. Jatropha is one plant whichcan be conveniently used inafforestation of such wastelands.Moreover, it can be easily propagatedfrom seeds as well as throughvegetative propagation. Jatropha canalso be profitably grown as a perennialnon-edible oil crop on irrigated andpartially irrigated lands.

Jatropha plantation as a commercialactivity is of recent origin. Scientificdata with respect to the differentparameters of its cultivation and otherimportant aspects like identification ofsuitable high yielding strains, spacing,adaptability to different edaphic andagro-climatic conditions, compatibility

/ suitabil ity of its cult ivat ion withagri cult ural /si I Vicu It ural crops,response to fertiliser, gestation period.

yield, marketing facilities etc. areinadequate and not readily available.

Experiments have proved thatJatropha Curcus Oil can be a goodsubstitute for diesel or kerosene andfeasibility trials on its production

conducted by Bharatiya AgroIndustries Foundation, Pune have beenencouraging. The Plantat ionProgramme initiated by the AgroForestry Federation at Nasik, has donecommendable work in popularising theactivity among the farmers. Based onthe experiments and experience ofBAIF and Agro Forestry Federation amodel plantation programme could beformulated on the followingparameters.

Planting practices :Transplanting one-month old seedlingscould be superior to either directseeding or 50 cm stem cuttings in allthe growth parameters. In anycommercial plantation, the rate ofsuccess is much better with polypotseedlings than direct sowing orcuttings. For polypot seedlings eithera nursery may be established orseedlings may be obtained fromnursery raised by Forest Department/Forest Development Corporation or

kissan nurseries. It is desirable toobtain clonally propagated plantingstocks, if available.

Spacing :

At the BAIF experiment fields a spacingof 1x3m(3333plants/Ha) and2x1m(5000plants/Ha.) have showngood performance in growthparameters than the rest. However,espacement of 2 x 2 m had also shownexcellent growth and the canopydevelopment is ideal for producing

seeds. Yield from these plantationswas much more than what wasanticipated. Therefore, a spacing of2x2m is recommended.

Unit Cost:

Fertiliser and FYM:

Though BAIF observed that,application of NPK fertiliser did notproduce any significant increase ingrowth, yet application of FYM & some

doses of fertiliser will boost the growof the plants particularly in wastelanwhere soil nutrients are almost depleting state.

Irrigation:

Strictly under rainfed conditioplantation of any other forest tree wbe more suitable than JatrophHowever the main objective Jatropha plantation being productiof high value seeds that too degraded lands it is advised to proviideal condition, like polypot seedlinadequate spacing, some doses of FY& fertiliser and above ail partirrigation. Artificial irrigation, during period as well as flowering and fruittime, upto 6th year will help boost tgrowth of the plants and seproduction as well.

Economics :

Espacement: 2M x 2MNo of trees / Ha : 2500Casualty replacement: 20%Survival / Ha ; 2000 nos

Broadly in Jatropha cultivatiexpenditure on following activitwould be involved:-

Initial ploughing and Site preparatio

Alignment & StakingDigging of pits & refillingCost of farm yard manure and fertilisCost of plants incl. transportPlanting & replanting WeedingSoil workIrrigation during dry periods as aduring flowering and fruiting timeContingencies

It is estimated that during first yeexpenditure would come to about R12000/-. Taking into account recurri

expenditure on irrigation, weediduring initial three years, replantifertiliser etc. total expenditure expected to be about Rs. 23000/- ova period of six years

The returns on small scale aexpected to start from 2nd yeonwards stabilising by 7th year Rs.24,000/- per hectare. Thus tplantation will generate sufficiesurplus from 5th year onwards and w


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continue to do so till 30 years. IRR of

such part ial ly ir r igated Jatropha

plantations is 37%. These parameters

have indicated beyond doubt that, the

Jatropha plantat ions are both a

technically feasible and financially

viable and bankable too. Already a

number of Jatr opha planta t ion

schemes have been approved by

financial insti tutions . However, it is felt

that the major constraints in raising of

Jatro pha planta t ion s is the non

availability of good quality planting

stocks. No organi sati on has so far

undertaken any systematic genetic

improvement work to produce quality

seeds/clones. Besides, no organised

marketing network has also been set

up for the benefit of the farmers

although a few companies like Godrej

soaps and Hindusthan Lever have

^ shown interest to purchase the seeds.

These aspects have to be looked into

when Jatropha plantat ions are

proposed to be raised by the farmers/

industries.

IRDP-BACK END

SUBSIDY

The recommendation of the expert

committee on IRDP for the introduction

of back-end subsidy has examined by

NABARD in consultation with RBI/GOI

and it has been decided to implement

the back-end subsidy with immediate

effect.

As per the scheme the full project cost

including subsidy would be disbursed

/^to the borrowers as loan by banks. The

amount of subsidy would be kept in the

form of fixed deposit in the name of

the beneficiary subject to the bank's

lien. The repayment schedule of the

loan would be drawn up in such a way

that the f ixed deposit (subsidy)

alongwith the interest accrued for the

entire period of the deposit in a

compounded manner would be

sufficient for adjustment towards thelast few instalments. Borrowers will not

be entitled for any benefit of subsidy,

if the loan is fully repaid before a certain

fixed period i.e. lock-in period for

various activities. The availability of the

benefit of subsidy to borrowers would

be contingent on their proper utilisation

of loan as also prompt repayment and

mainta in ing the asset in-good

condition.

JLei^ul J/ottingi

Prosecution for defrauding the Scheduled Tribes

In a recent judgement reported in

A.I.R. 1995 SC pg 94, the Supreme

Court came down very heavily on

persons who are grabbing the seats

in professional colleges and jobs

under the 'State' in the guise of they

belonging to the SC/STs. The above

case relates to two sisters who tried

to secure admission to a medical

college in Mumbai against the quota

reserved for Scheduled Tribes.

The students applied through their

father to the Tahshildar, Andheri for

issuance of a certificate to the effect

that they are Sch edul ed Tribes

belo ngin g to a tr ibe know n as'Mahadeo Koli'. The Sub-Divisional

Officer, refused to issue the

certificate on the ground that they did

not belong to that tribe. She filed an

appeal before the Addl. Commr.,

Konkan Division, Mumbai and also

simultaneously filed a Writ Petition

in the Mumbai High Court to direct,

inter-alia, the dean of the medical

college to permit her to appear for

the interview and admit her in the

college for the MBBS course, if she

was fou nd fit. The High Cour t

directed the Divisional Commissioner

to dispose of the appeal expeditiously

pursuant to which the Divisional

Commissioner, without deciding on

the facts of the case, directed the

concerned Tahshildar to issue a

caste cert i f icate cert i fying the

appellant as belonging to the

Scheduled Tribe of Mahadeo Koli.

The student also applied to the

Verification Committee for confirming

of caste status as belonging to a

Scheduled Tribe. In the meanwhile, by

the orders of the High Court, she also

got admission to the medical college.

The second appellant on the basis

of the orders passed by the High

Court in her sister's favour obtained

a certificate from the Tahshildar

declaring her caste status to be

Mahadeo Koli and sought admission

in the BDS course for the year 1992.

She also applied to the Verification

Committee for confirmation of her

caste status.

However, after conducting an

elaborate enquiry into the claims of

both the sisters, the committee came

to the conclusion on the basis of the

particulars furnished by their father

that they were only Kolis by caste and

therefore belonged to the 'Other

Backward Class' notified by the State

Government and that they were not

Mahadeo Kolis which is notified as a

Scheduled Tribe and accordingly thecaste certificates issued to the two

sisters by the Executive Magistrates

were cancelled and confiscated.

Their appeals against the orders of

the Verification Committee were

dismissed.

On the above facts of the case, the

Hon'ble SC, on the basis of the

evidence available on record, upheld

the f ind ings of the Ve rif ic at ion

Committee and the consequential

conf isc at i on of their caste

certificates.

The Supreme Court further directed

that if the certificate obtained or social

status claimed is found to be false

on ver i f icat ion, the parents/

guardians/candidate should be

prosecuted for making false claims

and if the prosecution ends in a

convict ion and sentence of the

accused, it could be regarded as an

offence involving moral turpitude,

disqualification for elective posts or

office under the State or the Union

or elections to any local body,

legislature or the parliament.

The Supre me Court also directed all

the State Governments to constitute

a committee of three officers as

specified in the judgement to verify

the social status claimed by a person.


8/8

SHORT TERM fSAO) INTEREST RATES

It has been decided to revise theinterest rates on ST (SAO) refinanceeffective from 1 July 1996 as under:

7oage of SCBs borrowings Rates

from NABARD to ST(SAO) of Int.

loans outstanding against (% p.a.)

PACS

Less than 35

35 & above but < 40

40 & above but < 45

45 & above but < 50

50 & above but < 55

55 & above

5.0

5.5

6.0

6.5

7.0

7.5

Borrowings of SCBs under ST-SAO(DTP) would be charged interest at the

minimum rate of 5% p.a. even if theSCBs level of borrowings is higher.Similarly, SAO refinance provided to allcooperative banks in the North-EasternRegion will be charged interest of 5%.

To reward the deposit mobilisationefforts of cooperative banks, it hasbeen decided to offer suitable incentive

by way of interest rebate to such ofthose DCCBs which record highergrowth rates of deposits.

An incentive by way of interest rebateof 0.2% p.a. on the borrowings wouldbe paid to DCCB whose growth rate ofdeposits during the year 1996-97 (April-March) is not less than 30% over its

deposits of the previous year.

Where the growth rate is less than 30%the above incentive would be providedif the deposit growth rate during 1996-97 is not less than 5 percentage pointsover and above the average growthrate of deposit of the banking sectoras a whole in the district as well as notless than 5 percentage points over andabove the growth rate of DCCBsdeposit during the previous year. .

For the purpose of determining the

applicable rate of interest on ST(SAO)refinance as well as monitoring thecompliance with Minimum Involvementnorms, it has been decided to reckon,from 1 July 1996, the borrowings ofSCB from NABARD under ST(SAO) onthe actual 'Days product " basisinstead of" Weekly average" basis.

ST(SAO) AGAINST PLEDGE OF GOVT, AND OTHER TRUSTEE

SEC IRITIES-POLICY

It has been decided to sanction ST

limits to SCBs for financing SAO

against pledge of government and

other trustee securities sparingly, not

exceeding 10% of the Time and

Demand Liabilities (TDL). The

important term and conditions are as

under:

The extent of SCB's involvement ofown resources in SAO loan will be

reckoned as the difference between itsaverage ST(SAO) loans outstandingagainst all CCBs and its averageborrowings from NABARD under

ST(SAO) credit limits sanctioned onbehalf of CCBs.

Effective from 1 July 1996, NABARDwould charge interest at 12% p.a. onthe SCBs outstanding borrowingsunder the above limits. In case theentire borrowings under the limitsduring July-June are utilised forfinancing SAO over and above the Mllevel fixed for the bank, the rate ofinterest chargeable on the borrowing

would be the same as applicable to theoutstanding borrowing under ST(SAO)limits provided on behalf of CCBs for thecorresponding financial year (April-March).

NABARD EMPLOYEESHOUSING LOAN RULES 199

The Housing Loan Rules have becomprehensively revised and replacby the NABARD Employees' HousiLoan Rules 1996 which has come inimmediate effect. The importachanges brought out under the nerules are as under:

(i) Decentralisation of sanctionipowers to in-charges of ROs/TEs aID, Hyderabad for sanction of loproposals.

(ii) Granting of housing loan fconstruction of house on land held an employee, jointly with anothperson.

(iii) Permission to create secocharge or pari passu charge fobtaining supplementary finance froapproved financial institution/s.

(iv) Dispensing with the requiremenof obtaining Bank's prior approvahousing property acquired with Banfinance is proposed to be sold even wita period of five years provided theenloan has been repaid in full. Permissv/ould be necessary only during tperiod the housing loan is outstandin

(v) Removal of the conditions relatito insistence on disposal of any othproperty situated at the same cenacquired / inherited by the employor the employee's spouse befo

availing of housing loan.

STAFF- PROMOT!ON& -POSTINGS

Shri S. B. Sharma, Cliief GeneManager, has been promoted Executive Director.

Shri S.K. Mitra, General ManageCalcutta RO has been promoted Chief General Manager and retainin Calcutta.

Shri G. Sivasubramanian, GM, ID

has been promoted as Chief GeneManager and posted to GAPD vice SHameed Dawood who has taken ovcharge of FAD.

EDITORIAL ADVISORSP. V. A. Rama Rao, Dr. M. C. Bhandari, Y. C. Nanda, R. S. Deshpande

Edited and published by Vinu Wadgaonkar for National Bank for Agriculture and Rural Development, Sterling Centre, Worli, Bombay 400 018and printed by him at Uniform Offset Press, Uniform House, W.E. Highway Goregoan (E), Ivlumbai - 400 063

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