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e-Handout

on
AGRICULTURAL FINANCE

Prepared by :
Shri. N.G. Masare
Manager(Faculty)
9822606389
State Bank Learning Centre (eSBH)
AURANGABAD

Page No. 1 of 63
-: Index :-

Sr. Page
Topic
No. No.
1 Preface 3
Agri Finance Guidelines by SBIRD 7
2 KCC - Revised KCC 8
3 PML - Produce Marketing Loan 11
Production Credit
4 AGL - Agri. Gold Loan 13
5 ABAL- Asset Backed Agri. Loan 16
6 TTL - Tatkal Tractor Loan 18
7 Farm Mechanisation MTNL- Modified New Tractor Loan 21
8 SSTL - Stree Shakti Tractor Loan 24
9 Horticulture Citrus Cultivation 26
10 Minor Irrigation 36
11 Minor Irrigation Model MI project 38
12 MI General Guidelines 40
13 Dairy Farming 45
14 Allied Activities - Model Dairy Project NABARD 47
15 Dairy SBI Dairy Plus 51
16 SBI Dairy Sty Plus 53
17 Poultry Poultry Farming 54
18 Layers Farming 55
19 Brioler Plus 60
20

Page No. 2 of 63
AGRICULTURAL FINANCE
PREFACE

Even in the 21st century of technology, 70% of our population is dependent on Agriculture for
their livelihood and employment. The Agriculture production is totally dependent on

1. Climate
2. Weather conditions
3. Soil
4. Irrigation Facilities
5. Labour

Even after Green Revolution, there is uncertainty in agriculture production. The modern techniques of
cultivation requires capital for inputs like fertilizers, pesticides, farm mechanization, Irrigation &
storage facilities etc. most of the agricultural produce like vegetables, fruits are of perishable nature
and being wasted due to lack of storage facilities.

The average land holding per individual is shrinking and majority of the farmers are Marginal and
Small Farmers who are unable to meet the capital requirement, resulting in low productivity. These
marginal and small farmers are scattered and hence do not have any bargaining power neither for
purchase of inputs nor for market price of their produce.

Over the period of time, the contribution of agriculture to GDP is coming down year by year. The
limitations of this agricultural field are :-

1. Lack of Assured Irrigation facilities


2. Heavy dependance on Rain Fall,
3. Uncertain and uneven monsoon,
4. Seasonal employment,
5. Non use of modern technology,
6. Lack of storage facilities,
7. Lack of capital etc.

To overcome above limitations government has declared agriculture sector as priority sector and setup
Agri. Universities and NABARD to ensure research and adequate fund flow to this sector. The
government has also set up a lending bench mark of 18% of ANBC for Banks. From 70s Banks are
extending financial assistance to this sector and played a vital role in Green Revolution and self
dependance in food production.

The various activities financed can be broadly classified in to :-

I. Farm Credit
a. Production Credit -
- Crop Loans to - Short /Medium/Long Term &
Plantation/Horticulture Crops)
- Loans to farmers against ware house receipt
b. Development Credit
- Minor Irrigation -Ele. Motor/Pipe Line
- Minor Irrigation -Drip Irrigation
- Minor Irrigation -Solar pumps
- Minor Irrigation -Dug Wells
- Minor Irrigation -Tube Wells
- Farm Mechanisation - Tractor Scoring Model

Page No. 3 of 63
c. Allied Activities

- Dairy Farming
- Poultry - Broiler
- Poultry - Egg
- Sheep Rearing
- Goat Rearing

d. Producer Companies

II. Agri. Infrastructure


- Construction of Storage Facilities
- Soil Conservation and watershed development
- Tissue Culture and Agri. Bio-Technology.
III. Ancillary Activities
-Agri. Clinics and Agri. business Centre
-Food & Agro processing units up to Rs.100 Crores
-Loans to Primary Agri. Cr. Societies (PACS).

In this manual we are going study some of the above major activities we are financing.

Page No. 4 of 63
FARM CREDIT (Direct Finance)

A finance sanctioned to individual agriculturist is referred as Direct Agriculture Finance. This is


provided for

• Production Credit
• Development Credit
• Allied Activities
• Agri. Infrastructure

PRODUCTION CREDIT :

We may say this is Working Capital finance as it is sanctioned to meet the production cost or
operating cost to meet the cost of Agri. inputs such as Seeds, Fertilizers, Pesticides, small value
equipments, labour charges etc. which are required for raising of crops. This finance is popularly
know as Crop Loans.

The cultivation of crops is mainly dependent on following factors

1. Climate / Weather conditions


2. Soil Type
3. Harvesting Season
4. Water
6. Labour

Climate / Weather and Soil Type :

Certain crops require particular type of weather and soil. For example, wheat crop requires cold
weather and black soil with water holding capacity, apple requires cold weather as well hilly terrine,
coconut requires damp weather and salty soil near sea shore.

Harvesting Season:

The period required for cultivation of crops (seed to seed) is referred as "Harvesting Season".
Harvesting period differs for crop to crop. Some crops may be cultivated within a period of 90 to 120
days, where as some crops may require a period of 12 months also. The cultivation period broadly
can be classified as below :-

Crop type Harvesting Season Examples


Pulses, Cerals, Cotton, Paddy, Maiz, Wheat,
Short Duration 90 days to 120 days
Jawar, Fooder Crops etc.
120 days to 12
Long Duration Sugar Cane, Banana, Horticulture Crops etc.
Months

To generate cash surplus, agricultural produce requires to marketed. The agriculturist may require
some more time for fetching good marketing price and marking. Cash generation is possible only
after sale of agricultural produce. The period required for generation of liquid surplus (cash to cash)
is referred as "Crop Season". The crop season includes marketing period also.

Crop Season = Harvesting Season + Marketing Period.

Page No. 5 of 63
While repayment of any loan is expect only from liquid surplus generated from the activity, the crop
season plays a vital role in deciding repayment of the agricultural loans as income from agricultural
sector is not a regular one.

The due dates for repayment of Crop Loans and Term loan will depend directly on harvesting season
and indirectly on crop season. Further the TL installment as well as interest application frequency
viz. Half Yearly or yearly will depend on liquid surplus generation frequency.

Water :

The prime requirement for cultivation of crops is water. Depending on the availability of water the
agriculture farming can be classified in to :-

1. Dry Land Farming


2. Irrigated Farming

Dry Land Farming :

In our country, 80 % agricultural farm lands does not have any irrigation facility and are totally
dependent on rain fall. In our country, the rain fall is not available evenly and through out the year. It
is available during monsoon season of June to September only. This type is also referred as dry land
farming. The crops dependent on rainfall and cultivated during monsoon season are referred as "
Kharif Crops " and crop season is referred as "Kharif Season".

Irrigated Farming :

Remaining 20% agriculture farm land have a irrigation facilities through

a. Surface Water - Irrigation dams, Canals, Tanks, Pounds, Rivers etc.


b. Ground Water - Dug wells, Bore Wells, Tube Wells, Lift Irrigation Schemes etc.

Even though, the irrigation facility are available, the irrigation is not available every where through
out the year. They can be broadly classified as under :-

Irrigation type Examples


Irrigation in Punjab, Haryana states
Perennial Water is available during entire
through Canals of Major dams,
Irrigation year.
Rivers of Ganga, Satlaj etc.
Water is available only for some
Seasonal
period after mansoon, but not Dug Wells, Small ponds, Tanks etc.
Irrigation
through out the year.

The crops cultivated after monsoon season are referred as " Rabbi Crops " and crop season is
referred as "Rabbi Season".

Page No. 6 of 63
The following table explains the limitation of farmers and his cropping patterns i.e. which type of
crops and how many crops can be cultivated in a year. :-

Crop Season Total


Crops /
Crop Loan
Irrigation Source Crop Type Incom
Kharif Rabbi Summar Classification
e in A
Year
Short Duration Y N N 1 Short Duration -
Rainfall
Long Duration N N N 0 Mono
Seasonal Short Duration Y Y N 2 Short Duration-
Irrigation Long Duration N N N 0 Double
Perennial / Short Duration Y Y Y 3
Assured through Long Duration
out the Year Long Duration Y 1

It is evident from above table that,

• A farmer dependent on rainfall has to restrict him self for cultivation of Short
Duration Crops. He can grow only One crop during the year.
• A farmer having seasonal irrigation has to grow only Short Duration Crops. He can
grow Two crops in a year.
• Both the above farmers can't cultivate Long Duration Crop.
• A farmer with perennial irrigation has following two options :

▪ Cultivate 2 or 3 Short Duration Crops in a year OR


▪ Cultivate 1 Long Duration Crop in a year.
Following table shows the relation between Irrigation Facility, Cropping Pattern No. Incomes in a
year and Income Generation frequency

Irrigation Type Cropping Pattern No. of Income generation


Incomes / year Frequency
Rainfed Short Duration - Mono One Yearly
Irrigated - Seasonal Short Duration - Double Two Half Yearly
Irrigation - Short Duration Two or Three Half Yearly
Perinnial Long Duration One Yearly
We can say that, Climate, Crop Duration and Irrigation facilities plays a vital role in cropping
pattern, number of income generated in a year and also on repayment schedule.

Labour :

Labour is another important input for the Indian agricultural as the most of the farmers are marginal
and small farmers without capacity to invest capital. Small Agriculture farm size is also contributed
for restricting the farm mechanization at minimum level. Labour charges are also differs from place
to place. This difference has been reflected in different SOF (Scale of Finance) of Crop Loans for
different districts, finalized by Dist. Technical Committee of the concerned district.

Agri Finance Guidelines- SBIRD Home

Page No. 7 of 63
Revised KCC Scheme – 2012
SBI Master Cir Sr.No. 1599/2016-17, dated 09 March 2017
RBI Cir No. RBI/2011-12/553 RPCD.FSD.BC.No. 77/05.05.09/2011-12 dt.
11/05/2012

a. Cost of Cultivation of Kharif, Rabi, Long Duration Crops aur


b. Cunsumption Requirements
PURPOSE c. Maintainance expenses for Farm Equipments.
d. Purchase of Small value Farm Equipments.and Fodder Crops
Fodder Crops are also eligible for Crop Loan Finance.
Individual farmers - (Owner Cultivators, Tanent Cultivators, Oral Lesses, Share
ELIGIBILITY Croppers)
SHGs or JLGs - of Farmers, Tenant Cultivators, Share Croppers.
NATURE OF
Revolving CASH CREDIT Sanctioned for 5 Years
FACILITY
1. Marginal Farmers ( Land holding up to 2.5 Acres/ 1 Hectores)
A Flexi limit of Rs. 10,000/- to Rs, 50,000/- based on crops grown.
2. Other Farmers (Land holding above 2.5 Acres/ 1 Hectors)
MDL (Each Years Limit)
QUANTUM OF a. Cost of Cultivation for Kharif, Rabi and Long Term Crops as per SOF.
LOAN + b. Consumption requirements (10% of a)
+ c. Maintainance requirements (20% of a)
+ d. Small value Farm Equipments (75% of cost),repayable within 1 Year.)
Limit will be stepped by 10% every year in 2nd, 3rd, 4th and 5th year.
MPL (Highest amount of 5 years) will be sanctioned as KCC Limit.

MARGIN/ LTV a. Cost of Cultivation - N I L (included in SOF)


Ratio b. Farm Equipments - 25 %

EMI / NMI Ratio - Not Applicable -

• Interest rates are to be linked to 1 Year MCLR.


• Int. Subvention @ 2% p.a. is available from Govt. Of India for MDL upto
3.. Lacs.
 Addl. Subvention @ 3% p.a. is available from Govt. Of India to farmers
for prompt
repayment.
 Interest concession of 0.50% p.a is given to famers who avail loan above
RATE OF Rs.3.00 lakhs loan limit over and above the interest rates applicable.
INTEREST SBI Master Cir. Sl. No. 671/2016-17, DATED 20 AUG.2016
Interest Application:
 Interest should not be compounded on Current Dues.
 Interest can be compounded at Half-yearly rests only on Overdue Crop
Loans.
 On Long Duration Crops Interest is to be applied at Yearly Rests.
RBI Master Cir .No. RBI/2015-16/37 DBOD.NO.Dir.BC. 9/13.03.00/2015-16,
DATED 01/07/2015

Page No. 8 of 63
Int. @ SB int. Rate will be paid on Credit Balance.
INT. ON CREDIT
It will be calculated automatically and credited to account in December & June
BAL.
every year.
Hypothecation of Crop grown on the farm
PRIMARY
land
SECURITY Without Tie-up Waived up to MPL of Rs. 1.00Lacs
COLLATERA
L With Tie-up Waived up to MPL of Rs. 3.00 Lacs

Credit Scoring Credit Scoring Model. for all Crop Loans


Proposals with Credit Score = > 71 - Good Loans
CREDIT
Credit Score = > 26 - < 71 - Refer to Next higher authority
SCORING
Credit Score < 26 - Not to be considered
CRA Model for Limits > 25. 00 Lacs & Above.
Turn Over Account.
Every drawal to be repaid within a period of 12 Months.
REPAYMENT
Account will be treated as repaid whenever, Credit Summations exceeds MDL
Amount.
MDL upto – 0.50 Lacs – Waived
MDL 0.50 Lacs – Normal charges on the basis of MDL as per Cir Sr. No. 898/2014-15,
dated 28.10.2014

MDL Amount Above MDL Above Up to Processing Fees #


Up to Rs.50000/- Waived
PROCESSING
Rs. 50000/- Rs. 100000/- Rs.100/-
FEES
Rs. 100000/- Rs. 300000/- Rs. 100/- per Lacs and Part thereof
Rs. 300000/- and Above 0.30 % f Loan Amount
# Applicable Service Tax/GST to be loaded.
To be recovered at the time of Initial Sanction as well Renewal

Crop Insurance is mandatory. All Notified Crops are to be covered under


PMFBY.
INSURANCE Borrowers are also to be informed regarding availability of Insurance of Rs.
50,000/- under PAI (Personal Accident Scheme).
Insurance Premia : Borrower Rs. 5/- p.a. + Bank Rs. 10/- p.a.
As per delegation of Financial Powers on the basis of Credit Scoring Model.
OPD Cir Sl. No. : : 881/2016 - 17 dated 04 /10/2016
Score
Discretionary Above 71 Good Loans As per delegation of powers.
Powers 70 to 26 May be considered Refer to Next higher authority.
Less than 26 Should not be considered for
Sanction.

Page No. 9 of 63
ATM-CUM-DEBIT Card ( Kisan Card)
POS Devices
DISBURSEMENT
Cheque Book Facility
Operations through Branch.
Pre-Sanction Inspection before release of the Loan.
INSPECTION
Post-Sanction Inspections as stipulated by HO.
Incase of crop failures due to natural clamaties;
-- Holiday Marking is not required.
RELIEF
 Crop loans are to be converted in Term Loan repayable within 3 to 5
MEASURES
years. AB7 document.
RBI MASTER Directions Cir No.RBI/FIDD/2016-17/27, dated 01/07/2016.
PRODUCT
6134-6001 OR 6134-6005
CODE
• Two Passport Size Photographs.
• ID proof such as Driving License/ Aadhar Card/ Voter Identity Card /
Passport etc. Any one document need to be submitted. .
• Address Proof such as Driving License, Aadhar Card,etc.
• Proof of land holding duly certified by the revenue authorities
DOCUMENTATI • Cropping pattern ( Crops grown) with acreage
ON
• Application Form
• Arrangement letter duly accepted by the borrower
• AB1 / ABI –sim- Agreement for Hypothecation
• Security document AB3- Mortgage deed if loan limit above Rs.1.00 lakh
AB2- Guarantee Deed (if applicable)
CBS : KEY VALUES OF IMPORTANT FIELDS
MDL < 3.00 Lacs : MCLR 6134-6001 - MCLR Revised KCC
Product Code MDL > 3.00 Lacs : MCLR 6134-6005 - MCLR KCC
SHORTRM CROP >3.00 LNON SUBVENTION

Limit Amount MDL of Respective year


* Due Date of Crop Loan
Short Duration (MONO) - Kharif - 31 Jananuary /SLBC declared
Short Duration (MONO) - Rabbi - 31 July /SLBC declared
Limit Expiry Date
Short Duration (DOUBLE) - 31 July /SLBC declared
Long Duration - 12 M from Dt. San../SLBC declared
SBI ABU Cir Sl. No. : 15/2013 - 14 dated 05 April 2013
Fresh Advance - No
Renewal
Renewal - Yes
Next Int. Application Date Last day of month in which due.

Security Expiry Date Blank for Crop Loans ( Crops are grown in every month)

Short Duration MONO *(Crops in One Season) - 24 Months


Short Duration Double **(Crops in More than 1 Season)-12 Months
Crop Season Long Duration - 12 Months
* Crops cultivated either in Kharif or Rabbi season
** Crops cultivated in Kharif and Rabbi seasons.

Page No. 10 of 63
Subvention MDL > Rs. 3. 00 Lacs – No
Required MDL < Rs. 3. 00 Lacs - Yes
Subvention
Date of Sanction / System Date / Todays Date
Start Dt.
Subvention Details
Subvention
12 Months from Date of Sanction
End Dt.
Subvention
7 %; Paramatarised and will be picked automatically by system.
Rate
Please complete e-lesson New KCC Scheme 2012 and related Test available at e-learning portal.
Pepared by :
Shri. N.G. Masare
9822606389
Home

Page No. 11 of 63
PRODUCE MARKETING LOAN
DL Against WHR
(Product Code : 6411-2000)
Master Cir ABU Sl. No.122 of 2009 - 10 dt 25.05.2009
• To avoid distress Sale.
Purpose • To ensure prompt repayment of Crop Loans
• To meet contingency needs.
Farmers / Group of Farmers who have
- Availed Crop loan from our Bank
Target Group /
- Availed Crop loan from other Banks
Eligibility
- Not availed Crop loan from any Bank. and
- Stored Farm produce in Own place / Ware house godowns.
Demand Loan Against security of Farm Produce stored at
Nature of Facility - Farmer's own Place/ Godown OR
- Accredited Ware houses.
Farm Produce Stored in
• Own Place / Godown - 60 %
• Collateral Management Services - 75- 80%
of the #value of produce ;
Quantum of Loan • Maximum Rs. 50.00 Lacs
# value of produce :
- (a) Price at the time of harvesting OR
- (b) Current Market Price OR
- (c) Minimum Support Price.
Which ever is LOWER
Farm Produce Stored in
• Own Place / Godown - 40 % OR
• Collateral Management Services :
Margin
▪ Lower of (a) or (b) above - 25 % ...... (I)
▪ (c) above - 20 % ......(II)
HIGHER of I or II
Prim. Pledge of Stocks
Loan above Rs. 1.00 Lacs - Mortgage of Land.
HOWEVER Mortgage of Land Waived, :-
Security Farm produce stored in / WHR issued by Loan Amt. Up to
Coll. Own Place/ Godown Rs. 1.00 Lacs
WHR issued by Approved Ware houses Rs. 10.00 Lacs
Collateral Manager Rs. 50.00 Lacs
Processing Fees W a i v e d.
Linked to self life of commodity OR
Repayment Validity of WHR OR
12 Months, whichever is earlier.
As applicable from time to time MCLR + Spread.
Rate of interest • CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017

Page No. 12 of 63
• KYC documents
• Application for PML
• Arrangement Letter, duly acknowledged by borrower.
• Demand Promissory Note
• DP Note delivery letter.
• AB-1 : Hypothecation Agreement
Documents to be • AB-2 : Deed of Guarantee
obtained • AB-3 : Mortgage Deed (which ever applicable)
• Affidavit for non-availment of loan from any Bank (from Non-Borrowers)
P l u s ....
When Farm Produce stored in Warehouse / Rural Godown /Cold Storage
• WHR Receipt duly endorsed in favour of Bank
• Security delivery letter.
• Under taking from Warehouse Authorities.
Loans up to Rs. 25. 00 Lacs - Once in 2 Months
Inspection
Above Rs. 25.00 Lacs - Monthly
As per OPD Cir Sl. No. : 881/2016 - 17 dated 04th OCT.2016 .
Loans above Rs. 25.00 Lacs, to be sanctioned on the basis of
Simplified Scoring Model

Discretionary Score Score % Stipulation


Powers
30 > 60% - "Good Loans" under Disc. Powers
25 to 29 50 % to < 60 % Refer to next higher authority.
< 25 <50 % Should not be sanction.

Our KCC Borrower Dr. PMPL Cr. KCC


Other Bank's borrowers Liquidation of Loan Account
Disbursement
Non-Borrowers Cash / Credit to Deposit a/c. as per choice
Borrower can withdraw from KCC / Deposit Account

Insurance For full value of stocks

• Int. subvention @ 2% is available on PML availed against WHR for 6


months to Small & Marginal Farmers.
• To be processed through LOS only.
• Part delivery of Stocks permitted.
Special Features • WHR should be sent through a responsible employee of the Bank to Ware
House.
• Delivery Order should be issued, to be receipted by the borrower.
• Fresh Receipt for balance of Stocks OR suitable endorsement on old
receipt, before delivery of Stocks.
PML- Master Cir ABU Sl. No.122 of 2009 - 10 dt 25.05.2009
References
PML- Scoring Model ABU Cir Sl. No.251 of 2016-17 dt 23.05.2016
PML- Scoring Model ABU Cir Sl. No.377 of 2016-17 dt 12.08.2016
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Page No. 13 of 63
Agri. GOLD LOANs
Master Cir on Gold Loans No. 16212 of 2016-17 dated 15.03.2017

Interest Subvention Non-Subvention

6530-1010 GL - Agri. Product KCC 6530-1112 GL - Agri. Product KCC


6531-1001 GL- Agri. Product DL 6431-4518 DL Gold Loan DL
Product Code
6531-1140 OD Gold Loan OD

• To meet the Crop Production


Expenses AND/OR • To meet the Short Term Production
Purpose
• Creation of Assets, to be used in / Investment credit needs.
Farming Operations.
• Invidiaul Farmers who are owner
• Any person engaged in Agri. and
cultivators, Tenant Farmers, Oral
Allied activities classified under
Lessees, Share Croppers,
Agri. as per RBI directives.
Agri.Enterpreneurs.
Target Group • Any person engaged in Agri. and
• Evidance of Land holding.
Allied activities classified under
Agri. as per RBI directives.
• Bonafide owner of Gold
• Bonafide owner of Gold
Ornaments.
Ornaments.
Nature of
Demand Loan , Overdraft OR KCC
Facility
i. Advance Value of Gold Ornaments to be pledged OR
Quantum of
ii. Assessement as per Scale of Finance, Land Holding and Cropping Pattern
Loan
WHICH EVER IS LESS.
Loan is assessed as per
• Advance value of Gold advised by Corporate Centre and
Margin
• Scale of Finance, which is inclusive of margin
• Hence, No Seperate Margin
Limits Up to Rs. 3.00 Lacs
• Limits up to Rs. 3.00 Lacs per
person, per season sanctioned for
Short Term crop products are eligible
for Int.subvention scheme of Govt. of
India and will be charged at 7% p.a. .
Floating, as applicable from time to time.
• If loan is not repaid on due date, 1 Year MCLR + Spread (1.25%)
Rate of the interest rate will be linked to
interest 1 Year MCLR + Spread (1.25%).

Limits Above Rs. 3.00 Lacs


Floating, as applicable from time to
time. 1 Year MCLR + Spread (1.25%).
• CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017

Page No. 14 of 63
PRIM.
Hypothecation of Crops raised out of Bank Finance
Security
COLL.
Pledge of Gold Ornaments.

Sr.
Loan Amount Processing Fees.
No.
a Upto Rs. 25,000.00 -Nil-
Processing
b Above Rs. 25,000.00 - to Rs. 2.00 Lacs Rs. 500/- + Service Charges
Fees
c Above Rs. 2.00 Lacs 0.30% of Loan amount
Subject to Revision from time to time.

KCC/OD - Running a/c for 3 years, subject to Annual Review.


Demand Loan - Repayable through sales proceeds of crops; within 12
Repayment Months.
▪ If outstanding exceeds the market value of Gold, adequate
amount to be paid immediately to regularise the account.
LTV Ratio 75 %.
Discretionary As per delegation of Financial Powers.
Powers OPD Cir Sl. No. : : 881/2016 - 17 dated 04 /10/2016
Disbursement Through KCC/SB Accounts only.
Permitted against
• Part payment of the loan
Part delivery • Advance value of residual gold ornaments to fully cover the Outstanding.
• Written request of the borrower
• Borrowers acknowledge for receipt of Gold ornaments in GL Ledger.
• Very exceptional cases.
• Complete repayment of loan.
• Undoubted authority & under taking of the borrwer. (SIM-GL/4)
3rd Party • If required, Indemnity from borrower on SIM-GL/5
delivery • Full identification /KYC of 3rd Party.
• Authorised 3rd party's acknowledge for receipt of Gold ornaments in GL
Ledger.
• Borrowers acknowledge on COS-49
• To be processed through LOS only.
• Usual Gold purity tests such as Nitric Acid Text, Touch Stone Method, Specific
Gravity Test Should be carried out.
• For Loans above Rs. 50,000.00 / Rs.1.00 Lacs, services of approved Gold
Appriaser and Additional Appraiser may be availed, for ensuring purity of gold
Spl. Features ornaments.
• Limits up to Rs. 3.00 Lacs, sanctioned • No Interest Subvention.
for Short Term crop products are eligible
for Int.subvention scheme of Govt. of
India.

Page No. 15 of 63
• 2 copies of Photographs of the borrower.
• KYC documents.
• Land Records and cropping pattern.
• DP Note, DP Note delivery letter
Documents to
be submitted • SIM-GL/1 Application for Gold Loan
• SIM-GL/2 Gold Ornaments delivery letter
• SIM-GL/3 Witness letter in case of illiterate borrowers
• SIM-GL/8 Memorandum in respect of Gold Ornament(s) deposited as
Security.
Reference  Master Cir on Gold Loans No. 16212 of 2016-17 dated 15.03.2017
Pepared by :
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9822606389

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Page No. 16 of 63
ASSET BACKED AGRI. LOAN
Premier Kisan Gold Card
(Product Code : 6531-1142)
Master Cir. Sl. No. 1598/2016-17, dated 09.03.2017
To provide hassle free finance to farmers for meeting credit requirements for :-
◦ Traditional & modern farm related activities
Purpose ◦ Emerging and High Tech Agri. activities
◦ Short Term Production credit requirements
◦ Investment credit requirements.
Our Existing / New Medium and Large Farmers.
Target Group
Good Borrowers banking with other Banks.
• Progressive, literate & illiterate farmers with owned land/immovable
property.
• Individuals/ Joint, Sole prop. concerns, partnership firms.
Eligibility
• Existing borrowers having credit facilities from our Bank.
• Takeover of existing units from other Banks/FIs with satisfactory track
record.
Nature of Facility Drop-line Overdraft facility.
• 5 times of farm/non-farm Annual Income OR
Quantum of • 65% of the value of land/building to be mortgaged whichever is less.
Loan • Minimum - Rs. 3.00 Lacs
• Maximum - Rs. 200.00 Lacs
The need based assessment for the required credit limits has to be carried out on the
basis of Credit Scoring Model applicable to proposed activity.
Assessment of
Production credit Based on revised KCC method
limit
Investment credit Based on the project cost of each activity.

Margin 15 to 25 %
LTV Ratio 65 %
Hypothecation of
Prim. • Standing/future crops and
• Assets created out of Bank finance.
EM/RM of SARFAESI Compliant immovable property (NA land/building),
pertaining to applicant / near relatives / partners only.
• Property within the radius of 25 KMs. from the branch.
• Value not less than 155% of loan amount.
Security • Only 1st charge on immovable property.
• Personal guarantee of pramotor /partners.
Coll.
• 3rd party guarantee of mortgagor.
• Other permissible Securities
▪ Gold
▪ Bank TDRs
▪ NSC/KVIPs
▪ LIC policies of applicant /guarantor.
Processing Fees 1.00 % of loan amount. Maximum Rs. 2.00 Lacs

Page No. 17 of 63
Drop-line Overdraft facility.
• Period : 12 to 72 months with equated or customised reduction in limit.
• DP has to be reduced monthly so as to liquidate the OD fully at the end of
Repayment
period.
• Transactions are permitted up to available DP.
• No Over drawings.
• No Renewal, only Annual Review
• Limit can be brought to the Original level or cancelled on the basis of
Review/ Renewal Annual Review.
• Yearly Affidavit stating that the funds have been/will be utilised for the
approved purpose/activities.
Loans up to Rs. 25.00 Lacs : 1 Year MCLR (Floating) + Spread (2.5) %
Loans of Rs. 25.00 lacs and above : Linked to CRA Rating
• Penal Interest of 1% over & above the applicable int. for balance
Rate of interest
outstanding, if overdue more than 30 days.
• CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017

• KYC documents
• Application for ABAL
• Arrangement Letter, duly acknowledged by borrower.
• Demand Promissory Note
• DP Note delivery letter.
Documents to be
• AB-1 : Hypothecation Agreement
obtained
• AB-2 : Deed of Guarantee
• AB-3 : Mortgage Deed (which ever applicable)
• Original Title Deeds of the property along with TAX Receipts.
• TIR & property Valuation Report.
• Security delivery letter.
Inspection Half Yearly
As per the delegation of Financial Powers vide
OPD Cir Sl. No. : 881/2016 - 17 dated 04thOCT.2016 .
Loans above Rs. 25.00 Lacs, to be sanctioned on the basis of Credit Scoring Model
applicable to proposed activity.
Discretionary Score Score % Stipulation
Powers
30 > 60% "Good Loans" under Disc. Powers
25 to 29 50 % to < 60 % Refer to next higher authority.
< 25 <50 % Should not be sanctioned.
Disbursement KCC Rupay Card to be provided.
Insurance For full value of stocks
• Int. subvention NOT available
Special Features • To be processed through LOS only.
• Applicable Scoring Model for assessment of limit should be used.
Master Cir. Sl. No. 1598/2016-17, dated 09.03.2017
Reference
SOP & FAQ - Stand Operating Procedure and FAQs
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Page No. 18 of 63
Tatkal TRACTOR LOAN
(Mortgage Free)

ABU Cir. Sl. No. 882, No. NBG/ABU/PDM-TRACTOR/ 22 /2015-16, dated 14.10.2015

Purpose To meet the cost of Tractor (including Insurance + Registration Charges)

Tr a c t o r models which have completed the Commercial Test form


organizations Viz,
Approved
 Central Farm Machinery Training and Testing Institute (CFMTTI), Budni
Models
(MP),
 Farm Machinery Training and Testing Institute ( FMTTI), Hisar, (Haryana).
 High Networth farmers, capable of purchasing Tractor with Cash.
 All Individuals/ Joint landowner cultivators holding minimum land of 2.00
Target group/ Acres.
Eligibility  Who Secures Score of 61 and above under Tractor Credit Scoring Model.
 Good Networth borrowers banking with other Banks.
 Existing / New farmers.
Nature of
Agri. Term Loan
Facility
Total Cost of Tractor
Quantum of
 Including Insurance Premia and RTO Registration Charges
Loan
 Exclusing cost of Accessories.
• Minimum 25% of Project Cost (Cost. of Tractor + Insurance Premia + RTO
Margin / Reg. Charges)
Ltv Ratio • Margin to be deposited in TDR in the br. with ZORO % rate of Interest.
• Lien has to be marked on TDR for the Loan Tenure of Tractor Loan.
EMI / NMI
Minimum DSCR should be 1.5 : 1.
Ratio
• As applicable from time to time MCLR + Spread. (Currently
MCLR+3.30)
CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017
Product Code Margin

Rate of interest 6430-4164 25 Lower the Margin,


6430-4165 35 Higher will be the Interest
Rate
6430-4166 50
• Interest to be applied on net of Margin ( Bank Loan Amount - Margin Amt.
in 0 % TDR )
• Penal interest of 1% on overdue amount.

PRIMARY Hypothecation of Tractor, purchased out of Bank Finance.


Security
COLLATERAL Pledge of GOLD ORNAMENTS.

Page No. 19 of 63
• Branches to search Bank’s lien on RC by login to website
w w w. v ahan.nic.in as is being done in case of car loans or
• Verify by sending SMS to VAHAN (space) registration number to
7738299899.
• Procedure for verification of lien is given in e-Circular No.430/2015-16
Charge in RC
dated 11.04.2015 within 15 days of disbursement of loan.
Book
• Braches should ensure by verifying the RC book within a period of
30 days from the date of disbursement of the loan or reported
delivery of the tractor, that the registration of the tractor is done
in the borrower’s name and the Bank’s lien noted therein is only
as a ‘ Hypothecatee’ and not as joint owner.
No. of Installments
EMI's for Net Loan ( Loan-Margin) 48 Months

EMI's for Total Loan (Without netting) 60 Months


Frequency :
Based on Total Scores awarded for paramater " Hiring Potential + % of Income
from Allied Activities" under Tractor credit Scoring Model.
Hiring Potential + % Loan Repayment Schedule
Repayment of Income from Allied
Activities
11 - 14 EMI covering Principal + Interest
Interest : Monthly Rs.1000 / Lack of Outstanding &
06 -10
Principal : Quarterly
Interest : Monthly Rs.1000 / Lack of Outstanding +
5 and below Residual Interest, if any &
Principal : Half Yearly
TL installments are to be synchronized with Harvesting Season of cultivated
Crops
Processing fees Waived
 Comprehensive Tractor Insurance for full cost in the name of Borrower.
 PAI cover for Rs.4.00 lakh up to 2 farmers for the first year.
Insurance
 Premium (at present Rs.200/- per person per year)
 1 s t Ye a r p r e m i u m will be borne by the Bank .
Discretionary As per ORGANISATIONAL PLANNING Cir Sl. No. : 881/2016 - 17 dated 04th
Powers OCT.2016 Circular No. : CDO/ORG-DFP/4/2016 - 17
TAT 2 Days for receipt of Complete set of required documents.
Disbursement Directly to Tractor Dealer, against KYC of dealer fulfillment.
b. At Quaterly Intervals.
Inspection
c. Inveriably to be noted in CBS.

Page No. 20 of 63
Incase of crop failures due to natural clamaties;
-TL installments are to be
▪ Re-scheduled /
Relief Measures
▪ Converted in to Term Loan, repayable within 3 to 5 years.
RBI Master Cir No.RBI/2015-16/68, FIDD NO. FSD.BC.01/05.10.01/2015-16,
dated 01/07/2015.
6430-4164 ( 25% Margin)
Product Codes 6430-4165 ( 35% Margin)
6430-4166 ( 50% Margin)
 KYC Documents.
 Land Records.
 Loan Application.
 Arrangement Letter.
Documentation
 AB-1 Hypothecation Agreement.
 Lien marking authorisation letter.
 Security Delivery letter for margin money TDR.
 PDCs towards Loan installments.
 To be processed through LOS only.
 Mortgage Free Loan-Credit
 Incentive for Dealer and Dealer Sales Executives for business sourced
by them.
No. of Referrels translated Maximum
% of Incentives
into Sanctions/ Per Month Amount
Up to 10 / Month 1% of Limit (75:25) Rs. 5000/-
Above 10 (upto 10)/ Month 1.40 % of Limit +
From 11th onwards 0.75 % of Limit Rs. 7000/-
(75:25)
Spl. Features Dealers i. 0.75 % Incentive will be paid by the branches after the
lien is noted in favour of Bank in RC book of Tractor.
i. Remaining, 0.25% will be paid after one year,
ii. Subject to the account continue to be a Standard
Asset.
Up to 10 / Month 0.50 % of Limit Rs. 2000/-
Above 10 (upto 10)/ Month 0.50 % of Limit Rs. 3500/-
Sales
From 11th onwards 0.70 % of Limit
Representatives
The incentive will be paid after the lien is noted in favour of
Bank in RC book of tractor.
 ABU Cir. Sl. No. 882, No. NBG/ABU/PDM-TRACTOR/ 22 /2015-16,
Reference dated 14.10.2015.
 Master Cir on Tractor Financing dt 31 March 2009
SOP SOP-Standard Operating Procedure - Tatkal Tractor Loan
Pepared by :
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9822606389

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Page No. 21 of 63
Modified New TRACTOR LOAN
Product Code : 6231-1105

ABU Cir. Sl. No. 1187, No. NBG/ABU/PDM-TRACTOR/ 33 /2014 -2015, dated 06.01.2015

To meet the cost of Tractor , Accessories, Implements (including Insurance +


Purpose
Registration Charges)

T r a c t o r models which have completed the Commercial Test form


organizations Viz,
 Central Farm Machinery Training and Testing Institute (CFMTTI), Budni
Approved Models
(MP),
 Farm Machinery Training and Testing Institute ( FMTTI), Hisar,
(Haryana).

 Existing farmers
Target group
 New farmers
 Good borrowers banking with other Banks.

• Minimum Land holding of 2.00 Acres.


• Farmer or group of farmers i.e Jt. Liability Groups(JLGs)/ Self Help
Eligibility Groups(SHGs), institutions or organization which will have regular
income either from farm activity or custom hiring from the tractor and
accessories to be purchased.

Nature of Facility Agri. Term Loan

Total Cost of Tractor, Accessories, Implements (As per approved dealer's Net
Price Invoice)
Quantum of Loan
Plus - Insurance Premia and RTO Registration Charges
Less - Magrin

• 15% of Project Cost


Margin (Cost. of Tractor ,Accessories, Implements
+ Insurance Premia & RTO Reg. Charges)

• Minimum DSCR should be 1.5 : 1.


EMI / NMI Ratio • BMs/CPCs are permitted to waive this stipulation, provided Liquid
Securities are offered to the extent of 50% of the loan amount.

Page No. 22 of 63
As applicable from time to time MCLR + Spread. (Currently
MCLR+3.30)
CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017
• For prompt repayment - Interest Concession of 1%.
Rate of interest
• Int. Concession to be provided in July every year, based on installments
paid between 1st July to 30 June of precessing year.
• Penal interest @ 1% p.a.on overdue amount.
• Penal interest @ 2% p.a. for failure to get the Tractor/Trolly registered
within 1 Month, from date of delivery for period of delay.
Loan Limit Hypothecation of Assets created out of Bank
PRIMARY
Up to Rs. Finance.
1.00 Lacs COLLATERAL - N i l -
Hypothecation of Assets created out of Bank
PRIMARY
Finance.
Security • Registered /Equitable Mortgage of land
Loan Limit for Value not less than100% of the loan
Above Rs. amount.
1.00 Lacs COLLATERAL • In case, RM/EM, not possiable, IIIrd
party Guarantee good for amount
involved with prior permission of
Controller.
Processing/
0.50 % of the Loan Amount
Upfront fees
Based on Total Scores awarded for paramater " Hiring Potential + % of
Income from Allied Activities" under Tractor credit Scoring Model.
Hiring Potential + %
of Income from Allied Loan Repayment Schedule
Activities
11 - 14 EMI covering Principal + Interest : Monthly
Interest : Rs.1000 / Lack of
Monthly
Repayment 06 -10 Outstanding
Principal + Residual Interest, if any - Quly.
Interest : Rs.1000 / Lack of
Monthly
5 and below Outstanding
Principal + Residual Interest, if any - Hly

TL installments are to be synchronized with Harvesting Season of cultivated


Crops.
Post dated cheques have to be obtained from the borrower for the EMI.
As per ORGANISATIONAL PLANNING Cir Sl. No. : 881/2016 - 17 dated
Discretionary
04 /10/2016
Powers
Circular No. : CDO/ORG-DFP/4/2016 - 17
Loan Amount + Margin Money amtout, directly to Dealers/Suppliers against
Disbursement
Quotations.

Page No. 23 of 63
No PAI
 Comprehensive Insurance of Tractor, Accessories and Implements for full
Insurance
cost in the name of Borrower.
d. At Half yearly Intervals.Quarterly for Tatkal Trac
e. Each borrower to be immediately contacted/visited on default in
Inspection
repayment of Prin./Inst.
f. Inveriably to be noted in CBS.
Incase of crop failures due to natural clamaties;
-TL installments are to be
▪ Re-scheduled /
Relief Measures
▪ Converted in to Term Loan, repayable within 3 to 5 years.
RBI Master Cir No.RBI/2015-16/68, FIDD NO. FSD.BC.01/05.10.01/2015-16,
dated 01/07/2015.
• Braches should ensure by verifying the RC book within a period
of 15 days from the date of disbursement of the loan or reported
delivery of the tractor, that the registration of the tractor is
done in the borrower’s name and the Bank’s lien noted therein
is only as a ‘ Hypothecatee’ and not as joint owner.
• Penal interest @ 2% p.a. for failure to get the Tractor/Trolly
registered within 1 Month, from date of delivery for period of
Charge in RC
delay.
Book
• Branches to search Bank’s lien on RC by login to website
w w w. v ahan.nic.in as is being done in case of car loans or
• Verify by sending SMS to VAHAN (space) registration number to
7738299899.
• Procedure for verification of lien is given in e-Circular
No.430/2015-16 dated 11.04.2015 within 15 days of
disbursement of loan.
 To be processed through LOS only.
 Incentive for Dealer and Dealer Sales Executives for business sourced
by them.
0.50 % of Loan Amount on the successful business sourced by
Dealers
dealers.
Spl. Features
Sales 0.25 % of Loan Amount on the Loan Maximum
Executives Applications Sourced Rs. 3000/-
• The incentive will be paid after the lien is noted in favour of Bank in
RC book of tractor.
• KYC of Sales Executires to be obtained from Dealers and held on record.
 ABU Cir. Sl. No. 1187, No. NBG/ABU/PDM-TRACTOR/ 33 /2014
Reference -2015, dated 06.01.2015.
 Master Cir on Tractor Financing dt 31 March 2009.

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9822606389

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Page No. 24 of 63
Stree Shakti TRACTOR LOAN
Cir. No. 268 / 2014-15 dt. 11.06.2014

With Collateral 6430-41163 Without Collateral 3430-4162


To meet the cost of Tractor , Accessories, To meet the cost of Tractor ,
Purpose
Implements Accessories, Implements
T r a c t o r models which have completed the Commercial Test form
organizations Viz,
Approved
 Central Farm Machinery Training and Testing Institute (CFMTTI), Budni
Models
(MP),
 Farm Machinery Training and Testing Institute ( FMTTI), Hisar, (Haryana).
 Minimum Land holding of 2.00 Acres in the name of borrower.
 Minimum Net Annual Income of the Borrower(s) is Rs. 1.50 Lacs from farm
activity / custom hiring / other sources.
 Income of the co-borrower(s) may be reckoned for arriving at Net Annual
Eligibility
Income.
 Woman as Co-Borrower.

EMI/NMI shall not exceed 60 %.

Nature of
Agri. Term Loan
Facility
Total Cost of Tractor, Accessories, Implements (As per approved dealer's Net
Quantum of Price Invoice)
Loan Plus - Insurance Premia and RTO Registration Charges
Less - Magrin
• 10 % of Project Cost
(Cost. of Tractor ,Accessories,
• Tractor - 25 %
Margin Implements
• Accessories - 50 %
+ Insurance Premia & RTO Reg.
Charges)
• Minimum DSCR should be 1.5 : 1.
DSCR • BMs/CPCs are permitted to waive this stipulation, provided Liquid
Securities are offered to the extent of 5% of the loan amount.

As applicable from time to time MCLR + Spread. (Currently


MCLR+3.30)
CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017
• For prompt repayment - Interest Concession of 1%.
Rate of interest
• Int. Concession to be provided in July every year, based on installments paid
between 1st July to 30 June of precessing year.
• Penal interest @ 1% p.a.on overdue amount.
• Penal interest @ 2% p.a. for failure to get the Tractor/Trolly registered
within 1 Month, from date of delivery for period of delay.

Page No. 25 of 63
PRIM. Hypothecation of Tractor accessories, purchased out of Bank Finance.

Security • 30 % of loan amount in the form


• No Collateral Security.
of TDRs/NSCs/Gold Ornaments.
COLL • Noting of Bank's Charge with
• Noting of Bank's Charge with
RTO
RTO

Processing/
1.25 % of the Loan Amount
Upfront fees

• EMIS - 48 • EMIS - 36 (Maximum)


(Maximum) • Moratorium - 1 Month
Repayment • Moratorium - 1 Month • 6 PDCs/ ECS to be obtained for
• 6 PDCs/ ECS to be obtained for the EMIs.
the EMIs.

TAT 3 Days

Discretionary As per ORGANISATIONAL PLANNING Cir Sl. No. : : 881/2016 - 17 dated 04


Powers /10/2016 Circular No. : CDO/ORG-DFP/4/2016 - 17

Loan Amount + Margin Money amtout, directly to Dealers/Suppliers against


Disbursement
Quotations.

 Comprehensive Insurance of Tractor, Accessories and Implements for full


Insurance
cost in the name of Borrower.

g. At Half yearly Intervals.


h. Each borrower to be immediately contacted/visited on default in
Inspection
repayment of Prin./Inst.
i. Inveriably to be noted in CBS.

• Braches should ensure by verifying the RC book within a period of


15 days from the date of disbursement of the loan or reported
delivery of the tractor, that the registration of the tractor is done
in the borrower’s name and the Bank’s lien noted therein is only
as a ‘ Hypothecatee’ and not as joint owner.
• Penal interest @ 2% p.a. for failure to get the Tractor/Trolly
registered within 1 Month, from date of delivery for period of
Charge in RC
delay.
Book
• Branches to search Bank’s lien on RC by login to website
w w w. v ahan.nic.in as is being done in case of car loans or
• Verify by sending SMS to VAHAN (space) registration number to
7738299899.
• Procedure for verification of lien is given in e-Circular
No.430/2015-16 dated 11.04.2015 within 15 days of
disbursement of loan.

Page No. 26 of 63
 To be processed through LOS only.
 Sanctioned on the basis of .Tractor credit Scoring Model
 The parameters namely, Liquid security as a % of loan and collateral
security as % of loan shall be normalized.
 Score for SSTL (without collateral) = (48 X 100) / 88 = 56.8
 Score for SSTL (with collateral) = (53 X 100) / 94 = 56.3
Credit Score Stipulation
> 56 - Good Loans Sanction under Discretionery Powers
< = 55, = > 26 To be referred to next higher authority.
< 25 Should not be sanction.
 Incentive for Dealer and Dealer Sales Executives for business sourced
by them.
Spl. Features  ABU Cir. 5974 of 2015-16, dt. 12.08.2015

1.00 % of Loan Amount on the successful Maximum Rs. 5000/-
business sourced by dealers.
Dealers • 0.75 % will be paid imediately on disbursement of loan
• 0.25 % will be paid after 1 Year, subject to the A/c continue to
be Standard Asset.
Sales
0.25 % of Loan Amount on the Loan
Executive Maximum Rs. 3000/-
Applications Sourced
s
• The incentive will be paid after the lien is noted in favour of Bank in RC
book of tractor.
• KYC of Sales Executires to be obtained from Dealers and held on record.
 KYC documents
Documents to be  Land Records
submitted  Quotation
 Loan Application.
 Master Cir on Tractor Financing dt 31 March 2009.
 Cir. No. 268 / 2014-15 dt. 11.06.2014 - New Product.
Reference  Cir. No. 597 / 2015-16 dt. 12.08.2015 - Revision in Margin / Dealier
Incentive.
 Cir. No. 1241 / 2016-17 dt. 20.12.2016 - SOP

SOP Standard Operating Procedure


Pepared by :
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Page No. 27 of 63
Citrus Cultivation
Model Profile of 1.0 hector
1. Introduction

In India, in terms of area under cultivation, citrus is the third largest fruit crop after Banana and
Mango. The average yield of citrus fruits in India is alarmingly low (8.8 t/ha) compared to other
developed countries like Indonesia, Turkey, Brazil and USA (22-35 t/ha). Among mandarins, Nagpur
mandarin (Central India), Kinnow mandarin (North–West India), Coorg mandarin (South India) and
Khasi mandarin (North-East India) are the commercial cultivars of India. Whereas, Mosambi
(Maharashtra), Sathgudi (Andhra Pradesh) and Malta and Jaffa (Punjab) are the sweet orange
cultivars traditionally grown.
2. Scope for Citrus Cultivation and its National Importance

Citrus cultivation in India is plagued with various problems due to limiting growing conditions,
limiting water resources and high incidence of pests and diseases warranting great care from planting
till the plants come to bearing in order to sustain a
productive life of a minimum of 15-20 years. There
is growing interest/awareness among the citrus
growers for adoption of latest technologies for
commercial cultivation of citrus. The National
Research Centre (NRC) for Citrus (ICAR), Nagpur
has come out with the package of practices for citrus
cultivation in different regions of the country.

In the present bankable project on citrus,


recommendations of the NRC for Citrus and the
views of the citrus growers and their experience has been taken into consideration.

Important States producing major citrus fruits in India

Sr. Name of the


States Name of the Citrus fruit
No. Citrus fruit
Pineapple, Jaffa, Hamlin, Valencia, Late
1 Sweet orange Punjab,Rajasthan, Uttar Pradesh
Campbell Valencia
Maharashtra Nagpur mandarin
Madhya Pradesh, A.P., North Nagpur mandarin Khasi mandarin
2 Mandarin Eastern region, Punjab, Rajasthan, Kinnow, Nagpur mandarin and local
U.P., West Bengal and Sikkim Darjeeling mandarin
Karnataka and Tamilnadu Coorg mandarin
Andhra Pradesh, Rajasthan, Andhra Pradesh, Rajasthan, Karnataka,
3 Acid lime Karnataka, Uttar Pradesh, Gujarat, Uttar Pradesh, Gujarat, Madhya Pradesh,
Madhya Pradesh, Maharashtra Maharashtra
4 Grapefruit Andhra Pradesh PKM (Jayadevi)
Gujarat, Andhra Pradesh, U.P.
Eureka Hill, Galgal Assam lemon
5 Assam
Lemon
Karnataka Baramasi, Nepali oblong, Italian lemon,
Lisbon lemon, Eureka lemon, Seville
Pummelo
6 Andhra Pradesh, Assam, NEH Red fleshed, White fleshed

Page No. 28 of 63
3. Technical Requirements of Citrus Cultivation
3.1 Climate
Citrus fruits in India are cultivated under varied agro-ecological conditions right from arid and
semiarid areas of southwest region to humid tropical climate of northeast India. Citrus trees are
evergreen, grown in truly subtropical climates of the world although in tropical regions of the
world they tend to produce cyclic growth flushes and hence regulating cropping in tropical areas
for forcing them into concentrated bloom needs judicious management of water deficit stress
according to soil type and growing season. Citrus fruits grow best between a temperature range of
130C to 370C. Temperatures below – 40C are harmful for the young plants. Soil temperature
around 250C seems to be optimum for root growth. High humidity favours spread of many
diseases. Frost is highly injurious. Hot wind during summer results in desiccation and drop of
flowers and developing fruits. Barring these limitations citrus is grown in all subtropical and
tropical areas of the world. The sub-tropical climate is best suited for citrus growth and
development. Khasi and Darjeeling mandarins are grown in high altitudes upto 2000 m as it is
adapted to a cooler climate.
3.2 Soil
Citrus plants are grown in a wide range of soils ranging from sandy loam or alluvial soils of north
India to clay loam or deep clay loam or lateritic/acidic soils in the Deccan plateau and north-
eastern hills. Citrus orchards flourish well in light soils with good drainage properties. Deep soils
with pH range of 5.5 to 7.5 are considered ideal. However, they can also be grown in a pH range
of 4.0 to 9.0. High calcium carbonate concentration in feeder root zone may adversely affect the
growth.
3.3 Planting Material
Availability of quality planting material is of utmost importance in citrus cultivation. Citrus
plants are very sensitive to various biotic and abiotic stresses. Therefore selection of an ideal
rootstock is a continuing challenge for the citrus industry of India. Currently used rootstocks viz.
rough lemon and Rangpur lime have gone through a lot of variation over the last five decades.
Therefore ideal selections developed from the conventional rootstocks by National Research
Centre for Citrus (NRCC), Nagpur and at other places under State Agriculture Universities may
be obtained for propagating quality planting material. For budwood selection, disease free
mother plants developed from the elite progeny of known pedigree through shoot tip grafting
method available at NRCC, Nagpur may only be used.
Primary nursery beds are prepared on light fertile soils or in the HDPE trays under shade net
structures. Selection of nucellar seedlings is done by eliminating weak seedlings, off types and
non uniform seedlings in 2-3 stages in the nursery beds. Secondary nursery seedlings may be
raised in polythene bags also as they become ready for plantation in the main field after attaining
the height of about 30-40 cm after one year.
3.4 Land preparation
Land needs to be thoroughly ploughed and levelled. In hilly areas, planting is done on terraces
against the slopes and on such lands, high density planting is possible as more aerial space is
available than in flat lands. Since citrus trees are highly sensitive to water logging and water
stagnation during rainy season providing drainage channels of 3-4 feet depth along the slopes
around the orchard is essential.

Page No. 29 of 63
3.5 Plant density
Sr. Crop Normal spacing Plant
No. population

1 Mandarin (Citrus reticulata Blanco) 6mx6m 277 per ha

2 Sweet orange (Citrus sinensis Osbeck) 5 m x 5 m, 5.5 x 5.5 m 400/330 per ha

3 Limes/lemons (Citrus aurantifolia 6x6m/5x5m 277/400 per ha


Swingle & Citrus limon)

In light soils, spacing will be 4.5 x 4.5 m or 5 x 5 m


3.6 Planting
The best season of planting is June to August. Pits of the size of 1m x 1m x 1m may be dug for
planting seedlings. 15-20 kg of FYM and 500 g of super phosphate is applied per pit while
planting. With good irrigation system, planting can be done in other months also.
3.7 Irrigation
Citrus requires critical stage watering in the initial year. It further reduces fruit drop and increases
the fruit size. Diseases like root rot and collar rot occur in flooded conditions. Light irrigation
with high frequency is beneficial. Irrigation water containing more than 1000 ppm salts is
injurious. Quantity of water and frequency of irrigation depends on the soil texture and growth
stage. Micro irrigation systems not only saves water and nutrients but also ensure good retention
of fruits during crucial stages of crop growth in March – April even in situations where water is
not a limitation.
3.8 Manures & fertilizers
Manuring is done in three equal doses three times in a year in February, June and September.

The Year - wise recommended Farm Yard Manure (FYM) requirement is as below
(Kg /plant/year)

VII Yr
FYM I Yr II Yr III Yr IV Yr V Yr VI Yr
onwards
Kg/plant 20 10 15 20 25 30 4
The Year - wise recommended various nutrients is as below (Grms/Plant/Year):-

VI Yr
Nutrient I Yr II Yr III Yr IV Yr V Yr
onwards
Nitrogen 100 200 300 400 450 500
Phosphoru
50 100 150 200 200 250
s
Potash 25 50 75 200 200 250
ZNSO4 25 25 50 50 100 150
FeSO4 25 25 50 50 100 150
MnSO4 25 25 50 50 100 150
One or two sprays of micro nutrient mixtures if required may be given

Page No. 30 of 63
3.9 Interculture

Ploughing, spading of basins, weed control, etc., are important inter-culture operations for soil
aeration and health. Chemical control of weeds with pre-emergence weedicides like diuron (3
Kg/ha), simazine (4 Kg/ha), glyphosate 4 l/ha, paraquat (2 l/ha), etc. may also be adopted.
3.10 Intercrops

Leguminous crops like soybean, gram, groundnut, cow peas, french bean, peas etc., may be
grown in citrus orchards. Intercropping is advisable during the initial three-four years after
planting.
3.11 Training and Pruning
In order to allow the growth of a strong trunk, initially shoots upto 40-50 cm from the ground
level should be removed. The centre of the plant should remain open. Branches should be well
distributed to all sides. Cross twigs and water suckers are to be removed early. The bearing trees
require little or no pruning. All diseased, injured and drooping branches and dead wood are to be
removed periodically.
3.12 Pests and Diseases Management
3.12.1 Pests
Important insect-pests of citrus are citrus black fly and whitefly, citrus psylla, Citrus thrips, leaf
miner, scale insects, bark eating caterpillar/trunk borer, fruit fly, fruit sucking moth, mites, etc.
Other pests attacking citrus particularly mandarin orange, specially in humid climate are mealy
bug, nematode, etc.
Control measures of major pests are indicated below:
Insect-Pests Control Measures Periodicity

Foliar sprays either with quinalphos 1.25 Weekly intervals on new


Leaf miner ml or fenvalerate 0.5 ml or flush as soon as infestation
monocrotophos 1.0 ml/litre of water is noticed.

One spray against adults and two at 50%


Citrus black (I half of April & Dec. and
egg hatching stage either with acephate
fly and white II fortnight of July) at 15
1.25 g or quinalphos 1.5 ml or
fly days interval.
imidacloprid 0.5 ml/ litre of water.

At bud burst stage or as and


Foliar spray either with quinalphos 1.0
when infestation is noticed
Citrus psylla ml or acephate 1.0 g or monocrotophos
during Feb, - Mar., Jun., -
0.5 ml/litre of water
Jul. & Oct, - Nov.

Foliar spray either with dimethoate 1.5 At bud burst stage


Citrus thrips
ml or monocrotophos 1 ml /litre of water and berry size fruits.

Spraying of parathion (0.03%) emulsion, dimethoate 150 ml and 250 ml


Scale insects kerosene oil in 100 litre of water or malathion @ 0.1 % or carbaryl @
0.05% plus oil 1%.

Swabbing of tunnel either with dichlorvos (0.1%) or carbaryl (1%) or


Trunk borer
monocrotophos (0.02%) kills the grub effectively.

Plugging of larval tunnels with cotton wad soaked either in dichlorvos


Bark eating
(0.1%) or carbaryl (1%) or monocrotophos (0.01%) effectively checks
caterpillar
the pest.

Page No. 31 of 63
3.12.2 Diseases
The important diseases of citrus are Phytophthora gummosis, citrus tristeza virus, citrus
greening (HLB-Huang Long Bing), citrus canker, powdery mildew, anthracnose, etc.
Control measures of these diseases are stated briefly below:
Diseases Control Measures Frequency

Phytophthora Scraping of the affected area and application of


Gummosis Bordeaux paste or copper oxifluoride paste or
ridomil + carbendazim.

Citrus greening Removal of infected branches/unproductive


(HLB--Huang Long trees and their replacement by disease-free
Bing) plants. Application of ledermycin 600 ppm
with ZnSO4 and FeSO4.Meticulous control of
citrus psylla vector.

Citrus tristeza virus Control of aphids and use of cross protected


grafts and shoot tip grafted plants or disease
free grafts

Citrus canker Cutting of infected twigs followed by spraying


of 1 % Bordeaux mixture or copper fungicide.
Foliar spray application of 100 ppm
streptomycin sulphate is also effective.

Powdery mildew Pruning of dead twigs followed by foliar spray In April


of wettable sulphur @ 2 g/litre, copper and
oxychloride @ 3 g/litre of water October.

Anthracnose Pruning of dead twigs followed by two foliar At


sprays of carbendazim @ 1 g/litre or copper fortnightly
oxychloride - 3 g/litre interval.
3.13 Harvesting
There are two main crops in mandarins and sweet oranges.
Harvesting
Crop Flowring Months
months

Ambiabahar January
October-
(mango (at the time of flowering of mango hence the name December
flowering) Ambia)

Mrigbahar February-
June-July
(Monsoon bloom) April

Crop Type Maturity. Harvesting


Mandarins & 240-280 Colour break stage.
Sweet Oranges days Picked up in 2 - 3 intervals of 10-15 days.
150-160
Limes & Lemons 2 or 3 crops in a year
days

Page No. 32 of 63
3.14 Yield

Yield Average Yield / plant


Crop Yield/ Plant Stabilisation
Commencement (after stabilisation)
Mandarin 5th year 50 fruits 8th year 700-800

Sweet
5th year 40-50 fruits 8th year 500-600
Orange

Lime/
3rd year 50-60 fruits 8th year 1000-1500
Lemon

Economic life of plantation: 15 to 25 years

3.15 Post-harvest management


The storage conditions for various citrus fruits are as under:

Crop Type Storge Temperature Humiditi Storage Period


Mandarins 5- 7°C 85-90 % RH 4-8 weeks.

Sweet oranges 7-8°C 85-90% RH 4-8 weeks.

Lime/Lemon 9-10oC 80-90% RH 6-8 weeks

• For imparting uniform yellow-orange colour to the fruits application of ethephon @


250 ppm along with 1 % calcium acetate as foliar spray at maturity stage is
recommended.
• Sweet oranges and mandarins may be treated with ethylene gas for de-greening and
development of colour.
• A temperature of 6-7°C, 5-10 ppm of ethylene and 90-95% RH in a de-greening
chamber can set a change in colour in about 48 hours.
• The cold storage conditions for long term storage for different citrus fruits are
available.
• Pre-cooling of citrus is done by forced air system.
• Oranges may be packed in well ventilated CFB boxes - 30 cm x 30cm x 30 cm.
• Limes are subjected to pitting after storage at temperature below 7°C.
• Waxing treatment further reduces moisture loss extends shelf life in all citrus fruits.

3.16 Marketing
Citrus fruits being perishable in nature need to be handled delicately and hygienically. Sweet
oranges, limes and lemons remain fresh under ambient conditions and hence can be transported
to distant places for marketing. More care and attention is required for mandarins during
handling and transport.

Page No. 33 of 63
4. Financial viability and Bankability : Techno-economic parameters for the model project
TECHNO-ECONOMIC PARAMETERS FOR THE MODEL PROJECT
Spacing 6mx6m
Variety Nagpur Mandarin
Planting Material Grafts
Plant Population (plants/ha) 275
Land preparation (Rs./ha) 2500
Labour (Rs./manday) 200
Planting material (Rs./plant) 30
Farm Yard Manure (Rs./MT) 1200
Urea (Rs./kg) 5.7
Single Super Phosphate (Rs./kg) 5.8
Muriate of Potash(Rs./kg) 16.6
Plant protection material (Rs./litre) 350
Sale price of Nagpur Mandarin (Rs./kg) 8
4.1 Project Cost :
In the present model, the unit cost of development of Mandarin in 1 hectare of land has been
presented. This may be modified to suit other types of citrus fruits taking into account the local
conditions, techno-economic parameters stated elsewhere and the prevailing wage rate as per the
minimum wage act of the concerned state. Unit cost in the model works out to Rs. 1,40,700/-
per hectare spread over a period of five years. The detail cost of development of mandarin
orange is given below.
Year
Itmes Total
1st 2nd 3rd 4th 5th
Land preparation 2500 0 0 0 0 2500
Digging and filling up of pits 4000 0 0 0 0 4000
Plant material 9060 9060
Planting and staking 2000 2000
Cost of FYM 7200 3600 4800 6000 9600 31200
Cost of fertilizers 1030 2090 3020 4750 4920 15810
Manures & fertilizers application 2000 3000 3000 3000 4000 15000
Irrigation 2000 4000 4000 5000 6000 21000
Plant protection measures 1750 1750 1750 3500 3500 12250
Appl. of plant protection 400 1200 1200 1600 1600 6000
Interculture 2000 3000 4000 4000 5000 18000
Harvesting 0 0 0 0 4000 4000
TOTAL 33890 18630 21760 27840 38610 140730
Rounded off 33900 18600 21800 27800 38600 140700
Margin Money 14100 Bank Loan 126600

Page No. 34 of 63
4.2 Margin Money
The margin money / down payment prescribed are 5 %, 10 % and 15% for small, medium and
other farmers respectively. The rest of the investment cost will be provided as bank loan.
However, in the present model, 10 % of the unit cost i.e. Rs.14100/ha has been considered as
margin money.
4.3 Bank Loan
Bank loan of 85 – 95 % of the total cost of development shall be available from the financing
institution. Bank loan considered in the model is 90%. It works out to Rs.126600/ha in the
model.
4.4 Rate of Interest
The rate of interest to be charged to the ultimate borrower would be guided by RBI guidelines
issued from time to time. However, the lending rate has been considered as 12 % for working out
the bankability of the model project.
4.5 Security
Banks are guided by RBI guidelines issued from time to time in this regard.
4.6 Financial Analysis
Financial analysis was carried out for one hectare of citrus cultivation. For financial analysis, the
income was assessed on a conservative basis.
The detailed calculation of project’s income and expenditure has been indicated in
Income – Expenditure Statement
Year
Items
5 6 7 8 9 10 11 12
Yield (kg per plant ) 10 30 50 60 70 80 80 80
Yield (kg per ha) 2750 8250 13750 16500 19250 22000 22000 22000
Income (A) 22000 66000 11000 132000 154000 176000 176000 176000
Cost of FYM 4000 4000 4000 4000 4000 4000 4000 4000
Cost of fertilizers 5463 5463 5463 5463 5463 5463 5463 5463
Manures & fertilizers
4000 4000 4000 4000 4000 4000 4000 4000
application
Irrigation 6000 6000 6000 6000 6000 6000 6000 6000
Plant protection
3500 3500 3500 3500 3500 3500 3500 3500
measures
Appl. of plant
1600 1600 1600 1600 1600 1600 1600 1600
protection
Interculture 5000 5000 5000 5000 5000 5000 5000 5000
Harvesting 4000 4000 4000 4000 4000 4000 4000 4000
TOTAL Expenditure 33553 34553 34553 34553 34553 34553 34553 34553
Rounded off (B) 34000 35000 35000 35000 35000 35000 35000 35000
Surplus(A-B) -12000 31000 75000 97000 119000 141000 141000 141000

Page No. 35 of 63
IRR, NPW and BCR :
Year
Items
1 2 3 4 5 6 7 8 9 10 11 12
Cost of
33900 18600 21800 27800 38600 0 0 0 0 0 0 0
investment
Maintenance
0 0 0 0 0 35000 35000 35000 35000 35000 35000 35000
cost
Total cost 33900 18600 21800 27800 38600 35000 35000 35000 35000 35000 35000 35000
Benefits 0 0 0 0 22000 66000 110000 132000 154000 176000 176000 176000
Net Benefit -33900 -18600 -21800 -27800 -16600 31000 75000 97000 119000 141000 141000 141000
D F at 15% 0.870 0.756 0.658 0.575 0.497 0.432 0.375 0.327 0.284 0.247 0.215 0.187
Disc. Cost 29493 14096 14344 15902 19181 15120 13128 11445 9440 9645 7525 6545
Disc. Benefits 0 0 0 0 10934 28512 41250 43164 43736 43472 37840 32912
Net
discounted -29493 -14062 -14344 -15902 -8250 13392 28125 31719 33796 34827 30315 26367
benefits
NPW 176556
BCR 1.98
IRR 34.11
4.7 Repayment period of loan
Based on the cash flow the repayment period works out to nine years including four years grace
period for repayment of principal.
Detailed repayment schedule has been worked out as below :-
Loan O/s Repayment Loan O/s
at the at the
Interest Gross Total Net
Year beginning end of
@12.0% surplus outgoing Surplus
of the Principal Interest the year
year
1 30510 3661 10000 0 3661 0 3661 0
2 47250 5670 10000 0 5670 0 5670 0
3 66870 8024 10000 0 8024 0 5670 0
4 91890 11027 10000 0 11027 0 11027 0
5 126630 15196 22000 3000 15196 0 18196 3804
6 123630 14836 31000 8000 14836 0 22836 8164
7 115630 13876 75000 30000 13876 0 43876 31124
8 85630 10276 97000 40000 10276 0 50276 46724
9 45630 5476 119000 45630 5476 0 51106 67894
* Interest during first four years would be met out of inter crop.
* Ensure that, interest application is considing with Harvesting Season
* Ensure that installment due date and frequency is considing with Harvesting Season.

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Page No. 36 of 63
Minor Irrigation
Introduction :
Our country with a geographical area of 329 million hectors, receives 1about 170 mm or average
125 cms of rainfall. About 80% rainfall is received during manson season only and there is great
regional variation in the distribution of the rainfall. In areas of western ghats and sub-himilayan areas
in North East it is more than 200 Cms, where as in areas of Western Rajasthan, Deccan Plateau is less
than 20 Cms. Rainfall is erratic and unpredictable. It is a matter of fact that, whatever rainfall is there,
it can't be utilised for cultivation of crops to it's full potential for the following reasons :-
Runoff to Sea - 35 %
Surface Flow - 15 %
Ground Water - 10 %
Sarface Water etc. - 05%
As the water is most essential component for crop
production, farmers are exploiting the ground water
resources. In this situation even if, the full potential of
rgound water is exploited, irrigation about 50 % of
cultivated are will continue to be rainfed.
When adequate of water is not available either due to low rainfall or uneven distribution during the
crop season, additional water has to be supplied. This "Artificial application of water in the filds to
maintain soil mosture is called irrigation".
Benefits of Irrigation :
The major benefits of Irrigation can be listed as below :-
• Increase in yield and production.
• Intensive Cultivation of crops.
• Extensive Cultivation of Crops
• Improvement of Quality of crop production.
• More cropping area etc.
Types of Irrigation Projects :
The area benefited by irrigation project is known as command area. Based on the amount of
command area, Irrigation Projects can be classified in to :-
Sr.
Type Command Area
No.
1 Major Project 10000 Hectors and above
2 Medium Project 2000 to 10000 Hectors
3 Minor Irrigation Project Less than 2000 Hectors.
Usually Major and Medium Projects are funded and undertaken by Govt. due to heavy amount of
funds envolment. However, Bank's are financing for Minor Irrigation projects to individual
borrowers as well as group of borrowers.
Minor Irrigation Activities :
• Dug Well / Bore Well / Tuble Well/ Farm pounds (New/Repairs/Deepening).
• Pump sets / Oil Engines / Solar Photovoltaic Pump sets / Pipe Lines/ Lift Irrigation.
• Systems.Micro Irrigation viz. Sprinkler / Drip Irrigation. /Solar Pumpsetc etc. Home

Page No. 37 of 63
Model Minor Irrigation
Master Cir.- Minor Irrg. Sl. No. 239/2009-10, dated 16.09.2009

To Finance any activity related to irrigating land / improve efficiency of


Purpose Irrigation for better crop production, which will improve economical status of
the farmer.
Our Existing / New Medium and Large Farmers.
Target Group
Good Borrowers banking with other Banks.
Eligibility Any person engaged in Agri. activity, owning the cultivation land.
Nature of Facility Agri. Term Loan
Major Direct Finance activities are :-
• Dug Well / Repairs to Well / Bore Well / Tube Well / Water Storage
Activities Financed Ponds
• Pump sets / Oil Engines / Solar Photovoltaic Pump sets / Pipe Lines.
• Micro Irrigation viz. Sprinkler / Drip Irrigation.
As per assessment o Bank's Technical Officer / RMRO. / NABARD Guide
Project Cost
Lines.
Total Project / Scheme Cost
Less : Margin
Quantum of Loan
Less : Subsidy (if any)
= Bank Loan.
The need based assessment for the required credit limits has to be carried out
Assessment of limit
on the basis of proposed activity.
Margin 15 to 25 % of Project Cost.
LTV Ratio 65 %
Movable Loan Up to Rs. 1,00,000/- Loan Above Rs. 1,00,000/-
Assets
Credted e.g. Prim. Hyp. of Movable Assets created out of Bank Finance
Pumpsets,
Ele. Motors
etc. Coll. -NIL - Mortgage of / Charge on Land

Security Loan Up to Rs. 1,00,000/- Loan Above Rs. 1,00,000/-


Movable
Assets NOT • DP Note
Credted e.g. Prim. • DP Note Delivery Letter
Wells, Ponds, • Loan Agreement
Tanks etc.
Coll. -NIL - Mortgage of / Charge on Land
Processing Fees As applicable to ATLs
• 23 Months as per NABARD guidelines
Gestation • In case of Drip / Sprinkler as short gestation, up to
Period harvesting / marketing of (First Post Development
Crop.)
Repayment
5 to 13 Years depending upon Cash Flow and DSCR.
1st Installment will due on harvesting / marketing (of First
Period
Post Development Crop.) OR
As per NABARD Guidelines.

Page No. 38 of 63
Loans up to Rs. 25.00 lacs 1 Year MCLR (Floating) + Spread
Loans of above Rs.25.00 lacs Linked to CRA Rating

• Penal Interest of 1% over & above the applicable int. for balance
Rate of interest outstanding, if overdue more than 30 days.
• CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017
Int. to be applied on Due Date of TL Installments, coinsiding with
Harvesting Season of major crops cultivated by the farmers.

• KYC documents
• Application for ATL AGL 1/1 & Annexure AGL 1/6
• Arrangement Letter, duly acknowledged by borrower.
• Demand Promissory Note
Documents to be • DP Note delivery letter.
obtained • AB-1 : Hypothecation Agreement
• AB-2 : Deed of Guarantee (wherever applicable)
• AB-3 : Mortgage Deed /Charge on Land (wherever applicable)
• Original Title Deeds of the property along with TAX Receipts.
• TIR & property Valuation Report.(wherever applicable)
Inspection Half Yearly
As per the delegation of Financial Powers vide
OPD Cir Sl. No. : 881/2016 - 17 dated 04thOCT.2016 .
Loans above Rs. 25.00 Lacs, to be sanctioned on the basis of Credit Scoring
Model applicable to proposed activity.
Discretionary Powers Score Score % Stipulation
30 > 60% "Good Loans" under Disc. Powers
25 to 29 50 % to < 60 % Refer to next higher authority.
< 25 <50 % Should not be sanctioned.

Plant & Mechinery &


Directly to vendors/suppliers
movable Assets
Disbursement
Immovable Assets May be disbursed to borrower after confirming end
use.
Insurance For full value of Assets anf Stocks under Pledge/ Hypothecation.
• Re-scheduling / Conversion of TL Installments and Interest due
during the year of Natural calamity.
Natural Calamities • Re-Phasement of future installments.
SBI Master Cir - Relief Measures Sl.No.133/2009-10 dated 02.06.2009
RBI Master Cir - Relief Measures dated 01/07/2015.
Special Features • To be processed through LOS only.
Master Cir.- Minor Irrg. Sl. No. 239/2009-10, dated 16.09.2009
Reference SBI Master Cir - Relief Measures Sl.No.133/2009-10 dated 02.06.2009
RBI Master Cir - Relief Measures dated 01/07/2015.

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Page No. 39 of 63
Minor Irrigation General Guidelines:
Technical feasibility of Minor Irrigation schemes depends on the quality and availability of water.

Quality : Some of the minerals/ properties of water are harm ful for growth of crops if they are
present in excess quantities.

Avalibility : The availibility depends on various factors as below :-

Miniral
Effect Solution
Contents
Calcium • Rises hardness of water.
Magnesium • Hard Water
Sodium
• More than 26 Before Sanction :-
Absorption Ratio
(SAR) • Poor Quality • Good to check the harmful
effects of sodium.
Quality • Affects the steel pipes and causes tip • Have a water test report
Chlorides from reputed Soil & Water
and edge burning of leaves
Testing Labs / Agri.
• Water containing more than 2000 college/ State Govt. etc.
ppm of salt.
Soluble salts
• Leads to soil salinity and alkalinity
(TSS)
problems.
• Unsuitable for long term irrigation.

Surface Water Flow of water in the River/Canal/Pounds/Tanks etc.

Under constant motion and replenishable.


The GSDA conducted studies and classified areas in three groups/water
sheds
Safe Area.
Plenty of Ground Water
White Area Sanction without referring to
Avalibility Exploitation is < 65 %.
any body.
Ground Water Semi Critical Area.
Grey Area Exploitation is 65 to 85 % Sanction with concurrence of
GSDA
Critical Area
Dark/ Black No sanction for new well.
Exploitation is > 85 %
Area Sanction only for replacement
of EM/pump.

Page No. 40 of 63
Dug Well and Repairs to Well :

Whenever, water from well is pumped, the area around the well gets dewatered and it should be
recuperated from the surrounding areas for next dewatering/irrigation. However, this will depend on
the availablity of ground water below the soil. Hence, GSDA has specified the minimum distance
between two dug wells/ bore wells/ etc.

Sr. No. Well Type Specing


1 Dug Wells 180 Mtrs.
2 Bore Wells 250 Mtrs
3 Dug-Cum-Bore Well 215 Mtrs.

Besides distance between two wells the location of well also plays a vital role in feasibility of the
irrigation scheme. The Do's and Dont's are as under :-

Can be located at Should not be located at


• Areas included between 2 nalas. •Areas with hard rocks exposure.
• Lands close to river stream . •Areas adjoining ridges and spurs
• Banks of nalas towards high ground. within 50 Mtrs.
• Zone of luxuriant, vegetation with leafy plants. •Areas with soil cover less than 30
Dug Well • Old courses of rivers and streams. Cms.
• Damp or moist areas. •eathered mantle less than 5 Mtrs.
• Soil thickness over 30 cm.
• Weathered mantle (loose sandy material, Murum,
soft rock etc) over 5 Mtrs depth.

• Ground water discipline to be observed.


Tube / • Trial / pilot drill to have a maximum hydrological information.
Bore • Operation should include drilling, casing, screening and development of well.
Wells • Diameter size will depend on the availability of ground water. soil strata and water
requirements of crops to be grown and area to be irrigated.
• The proposed site should be agove the area to be irrigated, so as to irrigate the crops
with gravity flow.
• In take flow will be from excess water, available in the rainy season / canal /well etc.
• They will be useful for irrigation as a protective irrigation system, specially for sumer
Tanks /
season.
Ponds
• Capacity will depend on - Type of Crop, Area under cultivation, crop season
considering the evaporation losses etc.
• Project Cost will include - Cost of digging, lining and bedding, Polythene paper,
fencing and pump set etc.

Page No. 41 of 63
Specific Guidelines.
Should have BSI Mark
Capacity in HP Min. Efficiency
Electric Motor 2 HP 72 %
3 HP 77%
5 HP and Above. 80 %
• Should have BSI Mark.
• Diameter of suction pipe and delivery pipe should be equal and well
discharge.
• * Motor & pump kept in a sealed casing, submerged in water all the
time. Used for tube / bore wells.
Pump Sets Lifting Capacity
Capacity in HP Min. Efficiency Type
of suction head.
Horizontl/
< 2 HP 50 % Up to 7 Mtrs
Centrifugal
2 - 4 HP 55 % Verfical / Turbine Beyound 7 Mtrs
4 - 10 HP 60 % * Submersible Beyound 7 Mtrs
• Should have BSI Mark confirming to IS-11170 or IS-7347.
• BHP of Diesel engine should be 10 % more than required HP of pump.
• Brand should have a good reputation and efficient and trouble free after
sales service preferably locally.
• Spare parts should be easily available.
Diesel Engine • SFC - Specific Fuel Consumption should be as low as possible, not
exceed following range.188 Gms/BHP/Hour
RPM Range SFC- Specific Fuel Consumption
1000 to 2000 rpm 250 Gms/BHP/Hour
Above 2000 rpm 210.5 Gms/BHP/Hour
The type of pipe and diameter will depend on
• Length of the pipe line.
• Elevetation between suction point and discharge point.
• HP of Ele. Motor / Pump / Engine.
• Types of pipes are as under :-
Type of Pipe Category Capacity to witstand pressure of
Pipe Line Non Pressure Plastic, foldable
1 Kg/cm2
Pipes pipes
GI Pipes
PVC Pipes
Pressure pipes 4 Kg/cm2 to 10 Kg/cm2
Cement Pipes
Asbestos Pipes

Page No. 42 of 63
Methods of Irrigation :
Broadly Irrigation methods can be divded in to catogeries.

Method Types Crops Benefits Limitations


Flood Paddy • High seepage,
Vegetables & Nursery • Tradational Methods. percolation &
Basin / Bed
Surface Crops • No technology. evaporation.
Maiz, Jowar, • Low cost. • Water use efficiency
Furrow is just 40-45 % only
Sugarcane
• Suitable for hilly areas.
• suitable for sandy soils
and soils with high
infiltration rate.
• Wind velocity more
• No leveling of land
than 16 Km/Hr.
required.
High density Crops. • Costlier.
• Equal distribution of
• Cereals • Energy needs for
water.
Sprinklers • Pulses • Minimum water loss.
punping.
• Oil Seeds • Min. water pressure
• Frost protection.
1-10 Kg/sqcm.
• Improved water
• Not effective for
management.
orchards
• Decrease in operational
cost.
• Increase in crop yield.
• Similar to rainfall.
Water is applied at
• Low rate
Micro • Directly to plant roots • To be designed and
drop by drop. installed by
• Low pressesure. technically qualified
Drip • Frequent intervals. persons.
Low density Crops • Application of water and • Frequent chocking
• Horticultural fertlizers in right of nozzels.
• Fruit Crops quantity and at time. • Hard water
• Vegetable crops • Less labour and energy problems.
• Cotton cost. • High cost.
• Sugar cane • Increase in crop yield.
• Subsidy up to 50 %.
• Cost depends on Size of command area, spacing, no. of plants etc.
• Cost includes cost of :
▪ Main Line, Sub Line,
▪ Laterals,Drippers, Micro-Tubes
▪ Lateral connectors, Straight Connectors,
▪ Filters, Pressure guage, water regulators and meters.
▪ Nozzels
▪ Installation Charges etc.

Page No. 43 of 63
• The lift irrigation schemes can be classified as :

Type Members Size. Water Source


Single borrower
Pound, Canal, Rive, Well
Invidual or with members Small size
etc.
of family
Group of Dam, Canal, River with
Joint borrowers up to Medium rennially availability of
11 members water.
Co- Co-op sty. of Larger
Dam, Canal
Operative members. size.
• Generally, for individual farmers the lift irrigation scheme
compromises single lifting device installed close to the water
source viz. pound, canal, river etc.
• Major Components of Lift Irrigation Scheme.
• Intake Well - in the river bed / dam
• Jack Well - on the bank of river
• Intake Pipe - connecting the Intake Welland Jack Well.
• Pump (pump House) - Hp depending on requirement & head.
• Delivery Pipe - between jackwell and rising main.
• Rising Main - Pipe Line up to maximum delivery head.
• Delivery Chamber - At highest level of command area.
Life
• Disrtibutaries - Pipes carrying water from chamber to field
Irrigation
• Condations for small lift irrigation:
◦ HP of pump set not to exceed 20 HP
◦ Length of rising main not to exceed 3 Kms.
◦ Rise between sucession head and delivery not to exceed 50
Mtrs.
• Main Documents required.

Data of flow of water in river 7-10 Yrs


Permission from competent authority to lift the Irrigation Dept.
water
Permission for laying the pipe line through their
Nebouring farmers
areas
Permission for laying the pipe line across the roads,
Public works dept.
if any
Feasibility Certificate for Power Supply Electricity Board
Project Report Consulting
Tophography map and L section of scheme Engineer
Resolution to avail loan for Lift Irrg. Scheme and to
Co.Op. sty
take guarantee
Power of Attorney in favour of. Sty. members.

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Page No. 44 of 63
Dairy Farming
Introduction & National importance :
As you know, almost 70% of the Indian population is dependent on agricultural for their lively hood.
However, agricultural is a seasonal activity and can not provide employment after harvesting season.
India is having lagest population of livestock in the world viz. 57.3 % of world's buffalow population
and 14.7 % of the cattle population. India is the largest producer of the Milk in the world by
producing abount 128 million tonnes of milk per annuam. The annual growith of milk production is
about 5%. Dairy is an important source of additional income to small and marginal farmers as well
as agrilcultural labours. In addition to milk, the manure from animals provides a very good source
of organic matter for improving soil fertility and crops yields. The gobar gas from the dung is used
as fuel for dosmestic purposes likes cooking and also for running engines.
Dairy farming also provides employment throughout the year.

Role of Banks :
Banks can play a vital role in providing a source for additional income to the rural population by
financing dairy units. The items of finance would include
Milch Animals
Construction of Sheds
Daily equipments
Fooder for 1 to 2 months
Capital Assets
Fencing
Digging of wells
Transport vehicles
Milk processing facilities etc.
Cultivation of fooder crops.
Labour payments
Working Capital Electricity bills
Veteriniry Expenses
Receivables etc.

The dairy schemes may be medium to large outlay. Hence, details project report have to be prepared.
Project Report for Bank Loan :
Project can be prepared by
• Beneficiary himself after consulting technical person from Animal Husbandry Dept./DRDA / Co-
operative dairy society / Milk Fedration etc.
• NABARD consultancy services NABCONS.
The project should include information on
• Technical
• Financial and
• Managerial aspects.

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Technical Aspects :
The project report should provide information on :
• Site location :Area, Accessibility by Road, Land development requirement, Site Map etc.
• Size of Unit : No. of milch animals, Milk production capacity etc.
• Civil structures : Sheds, Store Room, Milk Room, Office etc.
• Housing : Shed type, Area requirement for adults ( 1-3 Years) and Calves ( Less than 1 year)
• Equipments and Plant Machinery : Chaff cutter, Feed grinder & mixer,Milking machines, Milk
Cans, Biogas plant, Transport vehicles etc.
• Animals : Species,/Breed, Source, Place of purchase, Distance for site, Cost of animal etc.
• Feeding : Source of Green fooder, Dry fooder and Concentrage.
• Milk production : Order of lactation, Lactation / Dry Days, Milk production per day etc.
• Veterinary Aid : Consltant/ Empoyee, Location, Distance, Types facilities.
• Breeding Facilities : Location, Distance, Availibility of semen, Expenditure per animal etc.
• Electricity : Source, Connected Load, Approval from Electricity Board, arrangement for back up
Generator etc.
• Water : Source, Quality of water, Quantity for drinking, cleaning and fooder production.
• Marketing : Milk - Place of disposal, Price realisation, Basis & Periodicity of payment etc.
• Other Products - Quantity & Price expected for Manure, Bio Gas, Gunny Bags, Old Age
animals etc.
Financial Aspects :
• Financial Viability - Internal Rate of Return , Benefit Cost Ratio, Net Present Worth.
• Financial position of Borrower - Profatibility Ratios, Debt Equity Ratio, Tax obligations.
• Lending Terms - Grace Period, Repayment Period, Rate of Interest, Nature of Security.
Managerial Aspects :
Borrower's Profile :
• Constitution
• Experience in the business
• Experience / Capability to manage the proposed activity
• Financial soundness
• Technical know how
• Aggangements for technical know how, marketing etc.
Others :
• Name of financing Bank.
• Training facilities
• Regulatory clearances
• Assistance from Govt. / Subsidy etc. Home

Page No. 46 of 63
Model Dairy Project by NABARD
10 Mura Baffalos

To extend financial assistance for


• Purchase of milch animals
(Crossbred/ high yielding cows,buffaloes)
Purpose
• Dairy Shed
• Mechanical chaff cutters
• Milking machines
Depends on
• Breed of the milch animal
• Prevailing local Market Prices
• Transportation cost of animals
Project Cost
• Unit size
• Components included in the project
As per assessment o Bank's Technical Officer / RMRO. or
NABARD Guide Lines.
Margin Range from 10 to 25 %
Interest Floating, linked to 1 Year MCLR + Spread
Rate As applicable to Agri. Term Loans
Security As per NABARD/RBI Guidelines
Repayment Depends on Gross Surplus generated in the Scheme.
Repayable in Monthly installments within 5 to 7 years with suitable
gestration period.
Insurance The milch animals and capital assets have to insured annually or on long
term basis.
Techo Parameter Value
Economics
Parameters
Type of Milch Animal Graded Murrah Buffalo
No. of Animals 10
No. of Animals per Batch 5
Cost of Animal (Rs./animal) 50000
Cost of culled animal 5000
Transportation Cost/Animal 1000
Average Milk Yield (litre/day) 10
Floor space (sqft) per adult animal 50
Floor space (sqft) per calf 20
Cost of construction per sqft (Rs.) 120
Cost of chaff cutter (power operated) (Rs.) 5000

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Cost of equipment per animal (Rs.) 1000
Insurance premium (% per annum) 5
Veterinary aid/animal/ year (Rs.) 1000
Quantity of Concentrate feed in one bag(kgs.) 50
Cost of concentrate feed (Rs./kg) 12
Cost of dry fodder (Rs./kg) 2
Cost of green fodder (Rs./kg) 1
No. of labourers 1
Salary of labourer per month (Rs.) 4500
Cost of electricity and water/animal/year (Rs.) 150
Margin (%) 25
Rate of interest (%) 12
Repayment period (years) 5
Selling price of milk/litre (Rs./litre) 26
Sale price of gunny bags (Rs.per bag) 10
Lactation days 270
Dry days 150

Economics A model project with 10 buffaloes

Item Nos. Rate Total Cost


Cost of Milch Animals 10 50000 5,00,000
Transportation cost 10 1000 10,000
Capital Animal Shed 1 60000 60,000
Cost
Calf Shed 1 24000 24,000
Chaff Cutter & Equipments 1 60000 60,000
TOTAL 6,54,000

Feeding Lactation Dry


Schedule Type of Feed Qty Rate Cost/ Qty. Cost / Day
Kg. Rs. Day Rs. Kg Rs.
Concenrate 5 12 60 2 24
Green Fooder 25 1 25 20 20
Dry Fooder 4 2 8 5 10
TOTAL 63 54

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No. of
Year Lactation Dry Total
Gunny Bags
Year 1 8250 300 8550 171
Total
Concentrat Year 2 11250 2700 13950 279
e Feed Year 3 11250 2700 13950 279
consumed
Year 4 12000 2400 14400 288
Year 5 12000 2400 14400 288

I Batch II Batch
Year Lactation Lactation
Dry Days Dry Days
Days Days

Lactation Year 1 240 30 90 0


Chart Per Year 2 240 120 210 150
Animal Year 3 210 150 240 120
Year 4 210 150 270 90
Year 5 210 150 270 90

Economics
Years
Particulars
1 2 3 4 5
Sale of Milk 429000 585000 585000 585000 624000
Sale of Gunny
1710 2790 2790 2880 2880
Bags
TOTAL 430710 587790 587790 587880 626880
Cost of
Feeding 153450 209250 209250 223200 223200
LACTATION
Cost of
81000 72900 72900 64800 64800
Feeding DRY
Veterinary Aid 10000 10000 10000 10000 10000
Labour
54000 54000 54000 54000 54000
Charges
Electricity &
1500 1500 1500 1500 1500
Misc
Insurance 25000 25000 25000 25000 25000
TOTAL Exp. 252050 372650 372650 378500 378500
Surplus 178660 215140 215140 209380 248380

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1 2 3 4 5
Capital Costs 654000 - - - -
Recurring Costs 252050 372650 372650 378500 378500
Total Costs 906050 372650 372650 378500 378500
Benefit 430710 587790 587790 587880 626880
Net Benefit -475340 215140 215140 209380 248380
BCR &
IRR
PW Costs @ 15 % 1719259.92
BW Benefits @ 15 % 1853258.04
NPW 133998.11
B.C. Ratio 1.08
IRR % 30 %

Loan Repayment Schedule

Loan Gross Total


Year Interest Principal Surplus
Outstanding Surplus Repayment
Year 1 490500 178660 58860 98100 156960 21700
Year 2 392400 215140 47088 98100 145188 69952
Year 3 294300 215140 35316 98100 133416 81724
Year 4 196200 209380 23544 98100 121644 87736
Year 5 98100 248380 11772 98100 109872 138508

Appraisal of the Project


The scheme so formulated should be submitted to the nearest branch of the bank.
The bank's officer can assist in preparation of the scheme or filling in the prescribed application form.
The bank will then examine the scheme for its technical feasibility and economic viability.
Sanction of Bank Loan and its Disbursement
After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The
loan is disbursed in kind in 2 to 3 stages against creation of specific assets such as construction of sheds,
purchase of equipment and machinery, purchase of animals and recurring cost on purchase of
feeds/fodders for the initial period of one/two months. The end use of the funds is verified and constant
follow-up is done by the bank.

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Page No. 50 of 63
Dairy Society Plus
Master Cir.- Sl. No. 148/2009-10, dated 06.06.2009

To extend financial assistance for modernization of Dairy Societies by


• Construction of Milk House / Society Office
Purpose • Purchase of Automatic Milk collection system
◦ Transportation Vehicles
◦ Bulk chilling unit.

Target Group Dairy Societies / Pvt. Milk Dairies.

• Registration with State Govt. Co. Operative dept..


• Should have borrower powers as per by-laws.
• Affiliation to Dist. Milk Fedration/Union.
• Audited Balance Sheet for at least 2 Years.
Eligibility • "A" Grade & No adverse remarks in Audit. of previous 2 Years.
• Pre-Tax profit for last 2 years.
• Average 1000 Ltrs. per day milk supply to Milk Fedration.
• No borrowings / Liquidation of borrowings / No-dues certificate from other
FIs.

Nature of Facility Agri. Term Loan

Purpose Item Upper Ceiling

Construction Milk House / Sty. Office Rs. 2.00 Lacs


Automatic Milk Collection System Rs. 1.00 Lacs

Purchase of Milk Transport Vehicles Rs. 3 .00 Lacs


Project Cost /
Quantum of Loan Bulk Chilling Unit Rs. 4.00 Lacs
TOTAL Rs. 10.00 Lacs **
Total Project / Scheme Cost
Less : Margin
Less : Subsidy (if any)
= Bank Loan.
** Maximum 4 TIMES of Average Profit of last 2 years.

Assessment of limit Linked to pre-Tax profits of Society.

Margin 15 % .

DSR Minimum 1.75 %

Primary Hypothecation of assets purchased out of bank finance.

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Mortgage of landed property OR
Security Collateral
Guarantee of Milk Fedration/ Union.

Processing Fees As applicable to ATLs

Gestation Period Maximum 6 Months


Repayment
Period In Monthly Installments spread over 5 Years.

Loans up to Rs. 25.00 lacs 1 Year MCLR (Floating) + Spread

Loans of above Rs.25.00 lacs Linked to CRA Rating


Rate of interest
As applicable to direct Agri. Term Loans.
• CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017

• KYC documents of office bearers


• Application for ATL
• Tie-Up Arrangement Letter with Milk Fedration/Union.
• Undertaking from the Milk Fedration/Union to deduct and remit the
Documents to be installments till liquidation of loan directly to Bamk.
obtained • AB-1 : Hypothecation Agreement
• AB-2 : Deed of Guarantee (wherever applicable)
• AB-3 : Mortgage Deed (wherever applicable)
• Original Title Deeds of the property along with TAX Receipts.
• TIR & property Valuation Report.(wherever applicable)

Inspection Half Yearly


Directly to Suppliers/ Dealers.
Disbursement
Directly to vendors/suppliers
Insurance For full value of Assets and Stocks under Pledge/ Hypothecation.
• To be processed through LOS only.
• To be implemented only where milk societies/dairies are in operation.
DSpecial Features • Milk collection routes are available.
• Payment should be made by Milk Fedration directly to the bank.
• Borrowing Powers to the Society.
Master Cir.- Sl. No. 148/2009-10, dated 06.06.2009
Reference
Agri-eManual by eSBH LC Aurangabad

Prepared by :
Shri. N.G. Masare
9822606389

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Page No. 52 of 63
Poultry Farming
Due to growth in per capta income and purchasing power in the recent past, the food habits has also
been changed in the country. This has resulted in growing demands for domestic poultry market. The
farmers in India have moveed from rearing of country birdds to hybirds. Indian poultry sector has been
growing at around 8-15 % p.a.

The birds are reared / grown sheds in two ways.

Deep Litter System Reared on plain floor of natural mating abrosbing moisture.
Wire Cages Bred using atrificial insemination

When ever, birds are moved from one shed to other shed or disposed off, the farmers keeps the shed
vacant for 4 weeks for ensure bio-security measures.
This one batch of 72 weeks will take 76 Weeks.
If farmer is using all in all out system, when the birds in Layer House ther sheds viz. Brooder House or
Grower House will remain unutlised and there can be only 1 batch during 76 weeks. Hence, farmers
prefers cyclic (batch) system, where all the sheds will be used for different type of Age Groups. The
batch movement should be made in such a way that, Shed vacancy period is maintained in all brooder
house, Grower House and Layer houses with minimum loss time, are and less investment. For this Bird
Flow Charts are sheduled.
(Period in Weeks)
Brooder Grower Layer Shed
Batch Shed Shed Shed 1 Shed 2 Shed 3 Shed 4 Shed 5
No.
1 0-8 9-16 17-76
2 13-20 21-28 29-85
3 25-32 33-40 41-97
4 37-44 45-52 53-109
5 49-56 57-64 65-121
6 61-68 59-76 77-133

Depending on the purpose of rearing viz. Eggs or Meat the poultry units are bifurchated in following
types :-
a) Layer Farming
b) Brioler Farming.
There have been concerted efforts on recent years from Govt. bodies to promote poultry industry.

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Summary of two types of Poultry Farming are as under :-

Activity Layer Farming Broiler Farming


Purpose of Rearing Laying of Eggs Meat
Birds •Females only. • Chicks - 1 day old Birds
•Brooders - 1 day to 8 Weeks • Starters - 1 day to 4 Weeks
•Growers - 9 Weeks to 20 Weeks • Finishers - 5 to 6 Weeks
•Layers - 21 Weeks to 72 Weeks
•Culled - More than 72 weeks.
Shed • Deep Litters • Deep Litter System only
• Cage System
Fooder • Maize and Soya • Maize and Soya
• 50 Kg / Bird during • 3.75 to 4.00 Kg during
economic life cycle economic life cycle.
• • Average 1.8 Kg to 2.00 Kg for
1 Kg of weight.
Product 310 - 300 Eggs /Bird Average body weight of 1.75 Kg/ Bird
Economic Life Cycle Up to 72 Weeks 45 days
Income Sources • Eggs • Birds
• Skullded Birds • Manure
• Manure • Fooder Bags
• Fooder Bags
Key Performance • Feed Concersion Ratio • Time Taken to attain desired
Matrics • Rate of laying eggs weight (Average 1.75 Kg)
• Mortality Rate and disease resistance.
Rearing Systems • All in All out
• Cyclical (Batches)

POULTRY (LAYER) FARMING


Introduction :

The Layer Hatcheries produces chicks which may contain Male as well as Female chicks. For layeing
of eggs only female chicks are required. Hecne, the chicks batch is sorted out in Male and Females.
The Male chicks are killed and recyled for feed, which contains high quantity of protins. Farmers
purchases 1 day old Female layer type chicks and rear them for 72 weeks. The layer bird starts laying
of eggs after 20 Weeks (8 weeks of brooding and 12 weeks of growing), lays averaget 300 eggs for 52
weeks. After 72 weeks it's capacity to lay the eggs regularly gets reduced. Hence, they are disposed for
meat purpose.
Depending on the age groups, birds can be classified in to 4 Age Groups.

Group Age Rearing Period Housed in Period


Brooders 1 day to 8 Weeks 8 Weeks of brooding Brooder House 8 Weeks
Growers 9 th Week to 20 Week 12 Weeks of growing Grower House 8 Weeks
Layers 21st Week to 72 Weeks 52 Weeks of Laying Layer House 56 Weeks
Culled (Spent Hens) 72 Weeks & above NIL Dispossed off for meat purpose

Page No. 54 of 63
MODEL SCHEME FOR 10,000 LAYERS
( 1 + 1 + 5 ) SCHEME
Production Parameters
No. of Layers 10,000 birds
No. of Batches 5
No. of Birds / Batch 2,000
Frequency of Chick Purchase Once in 12 Weeks
Method of Rearing 1 + 1 + 5 Cage System
Shed Vacancy Period 4 Weeks
Batch Size Mortality
Chicks 2130 3%
Growers 2060 3%
Layers 2000 7%
Culls 1860
Per Brooder 0.4 Sqft
Norms for Shed / Size of Shed Per Grower 0.7 Sqft
Per Layer 0.8 Sqft
Period of Stay Area Total Cost of Cage / Bird
Brooder Cage 8 Weeks 43 x 20 ft 860 Sqft Rs. 36/-
Groower Cage 8 Weeks 73 x 20 ft 1460 Sqft Rs. 65/-
Layer Cage 56 (4+52) Weeks 50 x 34 ft(5 Sheds) 8500 Sqft Rs. 70/-
Cost of Cages Rs. 240/- Sqft
Shed Construction Period 12 Weeks
Cost of Feed / Week Cost of Medicines
Brooder 0.250 Kg/bird /week Rs. 18.00 / Kg Rs. 0.25 / Bird / Week
Groower 0.450 Kg/bird /week Rs. 15.00 / Kg Rs. 0.50 / Bird / Week
Layer 0.750 Kg/bird /week Rs. 15.00 / Kg Rs. 0.50 / Bird / Week
Labour /Month Rs. 4000/-
Power / Fuel Rs. 5000/- month
Insurance of Birds Rs. 4.00 / bird
Insurance of Shed & Equipments 0.25 %
Misc. Expenses Rs. 1000/- per month
Availability of Manure
Up to Grower Stage 0 - 20 Weeks 0.300 Kg/bird/Week
Layer Stage 21 - 72 Weeks 0.500 Kg/bird/Week
Chick Cost Rs. 3.10 per chick
Manure Rs. 25/-
Egg Price Rs. 600/- per Ton

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PROJECT COST
1.CAPITAL COST
A. SHED
1 Land leveling, Road Making, Drain making etc. 1 Acre 20,000
2 Boundry Fencing and Gate 30,000
3 Sheds
Brooder Shed 860 Sft @ Rs. 240/ Sft 206,400
Grower Shed 1460 Sft 350,400
Layer Shed 8500 Sft 2,040,000
4 Electric Fans, Bulbs, Furniture Rs. 2/-/ bird 30,000
A 2,676,800
B OTHER CIVIL STRUCTURES
1 Equipments store & Record Rood 100 Sft 1500 Sft @ 450,000.00
2 Feed Mfg-Storage Room 500 Sft Rs.300/ Sft
3 Medicines and Vaccines Store 100 Sft
4 Egg Store and Staff Toilet 100 Sft
5 Supervisor Quarters (One) 400 Sft
6 Labour Quarters (Two),150 Sft each 300 Sft
B 450,000.00
C WATER WORKS
1 Borewell of 7 mm dia. 150 ft 0.00
2 SI pumpset of 5 HP 0.00
3 Overhead Tank 1.30 Lac 150000.00
4 Pipelines 25000.00
5 Water sprinkler & foggers 10000 birds Rs. 2.50 /bird 25000.00
C 200000.00
D EQUIPMENTS
1 Cages
Brooders 2130 36 76,680.00
Growers 2060 65 133,900.00
Layers 2000 X 5 10000 70 700,000.00
2 Feed grinder-cum-mixer 300,000.00
3 Debeaker 5,000.00
4 Refrigetor 10,000.00
5 Egg trays, Sprayers, vaccinators etc. 25,000.00
D 1,250,580.00
TOTAL CAPITAL COST A + B + C + D 4,577,380.00

Page No. 56 of 63
WORKING CAPITAL REQUIREMENTS (1st Year):
Amount in Rs.
No. of
Sr. No. of Total Total
Item Chicks/ Rate Amount
No. Barches Quantity Amount
Batch
1 Cost of Chicks 4 2130 8520 25.00 213,000.00 213,000.00
2 Feed Cost Feed / No. of
Week Kg Weeks
Brooders 0.25 28 2130 14910 18.00 268,380.00
Growers 0.45 32 2060 29664 15.00 444,960.00 713,340.00
3 Medicine Costs
Brooders 28 2130 0 0.25 14,910.00
Growers 32 2060 0 0.50 32,960.00 47,870.00
4 Misc Costs
Labour 48 4000 192,000.00
Power/Fuel 48 1250 60,000.00
Insurance 4590000 0.25 % 11,475.00
Misc 48 250 12,000.00 275,475.00
TOTAL - Working Capital 1,249,685.00

POULTRY EFFICIENCY CHECK RATIOS : L A Y E R S

Ratio Layers

Gross Income from Sale of Eggs/Culls/Gunnies & manure


1 Benefit Cost Ratio BC
= -----------------------------------
Total cost of Inputs used

Value of Eggs produced per Bird


2 Feed Price Ratio FP
= -----------------------------------
Value of feed consumed per Bird
Total Feed consumed by the batch (Kgs)
Feed Efficiency
= --------------------------------------
or
3 FE /FC Total live weight of the batch (Kgs)
Feed Conversion
Ratio
• 1 : 2 is an ideal at 45 days of Age
Total Live weight of batch
Average weight of the
4 AWB = --------------------------------------
Batch
Total No. of birds ( on the last day)
No. of Eggs Proeduced
Hen Day Egg = ------------------------ X 100
5 HDEP
Production No. of Live hens.
• 82 % or more is desirable

Page No. 57 of 63
No. of Eggs Proeduced
= ------------------------ X 100
No. of hens housed
Hen Housed Egg For Long Term
6 HHEP
Production Av.daily No. of Eggs Proeduced
HHEP= ------------------------ X 100
No. of hens housed
• 82 % or more HHEP is desirable
30(EW) 2 P
= ----------------------
BW X F
EW = Average egg weight in Gms
Performance
7 PEI P = % of egg production
Efficiency Index
BEW = Agerage body weight in Gms
F = Average feed consumption per bird
per day
• PEI of more than 40 is desirable
F
= ----------------------
EW + BW
Net Feed Efficiency
8 NFE F = Av. feed consumption of layer
(NFE)
EW = Total egg weight.
BW = Boday weight of the layers.
• A Ratio of 2.1 and above is desirable
Gross income from a batch - Feed cost of the batch
Gross Margin per unit
9 = ------------------------------
of floor space
Area of house (or pen) used.
Total constructed area
= ----------------------------- ----------- X 100
Construction
10 CC Total farm Land Area
coefficient
• 25 to 35 is an ideal
No. of Birds started - No. of birds left at the end
Mortality = -------------------------------------
11 MR
Rate No. of birds Started.
• Should be less than 4 %

Total feed consumed (Kg)


Feed conversion
12 FCE = ---------------------------------------
Efficiency
Total weight of eggs (Kg)
• Ratio of 2.2 or less is desirable.

Overall profit from a 50 X Averabe Feed cost


13 P
layer = --------------------------
Averabe price per Egg.

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Page No. 58 of 63
Broiler Plus
ABU Cir.- Sl. No. 1269/2015-16, dated 13.01.2016

To extend financial assistance to Agri. entrepreneurs, will to undertake


contract broiler farming through Corporate tie-up for
• Establishment,
Purpose • Expansion of Broiler Farms ,
• Construction of Broiler/Grower shed
• Purchase of equipments
• Feed
Individual farmers who are associated with an Anchor Company for contract
Target Group
broiler farmer.

• Farmer must be a Owner / Lease holder of Agri. Land for construction


of Poultry Shed.

New Units Written agreement / Letter of understanding with Anchor


Eligibility Company.
Existing Associated with Anchor Co. for at least 1 Year.
Units Must have not have 2 bad cycles
( per Kg rearing/growing charges must not be less than
Standard One set by Anchor Co.)

Nature of Facility Agri. Term Loan

As per assessment o Bank's Technical Officer / RMRO. or


Project Cost
NABARD Guide Lines.

• Construction of Poultry Shed and


Setting Up
• Purchase of Equipments to support a
New Units 100 % of
capacity of 6000 birds.
Capital
Expansion • Construction of Poultry Shed and Expenditure
Existing • Purchase of Equipments to support a
Units capacity of 6000 - 12000 birds.
Quantum of Loan
Purpose Unit Cost ( Rs./Unit) * Total Cost Rs.
Construction of Shed Rs. 120/Sqft 7,20,000.00
Equipments Rs. 13/ Bird 78,000.00
* Subject to change 7,98,000.00

Page No. 59 of 63
• Cash Collateral as below.

New Unit 25 %
Margin
Existing Unit 20 %
• Cash Collateral to be kept as TDR with applicable Card Rate .
• Int. on Cash Collateral will be credited to loan account on Quarterly basis.

DSR Minimum 1.75 %

Primary Hypothecation of assets purchased out of bank finance.

Collateral Type Belonging to Extent


SARFAESI Compliant / Residential / Commercial
immovable property at Semi-Urban / Urban
Security centre.
Collateral Applicant or 50% of Loan
Gold Guarantor Amount.
NSC / KVIP s
LIC Policy

Processing Fees 0.625 % of Loan Amount.

Gestation Period 6 Months


• Repayable in 5 Years ( Maximum )
Repayment • 5 Repayment Cycles in a Year.
Installments • Repayment Cycles linked to payment cycle
of the Anchor Co.
• Negotiated Repayment in CBS

As applicable to direct Agri. Term Loans. viz


1 Year MCLR + Spread (Presently MCLR + 2.6 % )
Rate of Interest • CPPD Cir Sl. No. 1384/2016-17, dated 19/01/2017 &
• CPPD Cir Sl. No. 1408/2016-17, dated 25/01/2017

• KYC documents
• Application for ATL
• A Signed Agreement OR
• Letter of Understanding with Anchor Co. to perform contract broiler Farming.
• Arrangement Letter applicable to Agri. Advances.
• AB-1 : Hypothecation Agreement
Documents to be
obtained • AB-2 : Deed of Guarantee (wherever applicable)
• AB-3 : Mortgage Deed (wherever applicable)
• Original Title Deeds of the property along with TAX Receipts.
• TIR & property Valuation Report.(wherever applicable)
• Authorization letter by the applicant, authorizing Anchor Co. to pay the
installment amount / deposit sale proceeds to the applicants SB A/c with SBI,
directly to the Bank.

Page No. 60 of 63
• As per the delegation of Financial Powers vide
• RBU LHO MUMBAI Cir . No. : 173 OF 2009-10, dated 13.03.2010
• The decision to sanction the loan should be taken on the basis of Credit
Scoring Model as per ABU Cir. Sl No. 834/2014-15, dated 13.10.2014
Discretionary Powers
Score Score % Stipulation
30 > 60% "Good Loans" under Disc. Powers
25 to 29 50 % to < 60 % Refer to next higher authority.
< 25 <50 % Should not be sanctioned.

Turn Around Time 7 days from date submission of all required documents.

Animals, Const. of Shed


Directly to vendors/ suppliers
Plant & Mechinery

Disbursement May be disbursed to borrower after


Fodder
confirming end use.

• Cost of Shed/Plant & Machinery to be disbursed as per progress of project.

• PAI is mandatory for all applicants.


Insurance • Birds, Assets and Stocks under Pledge/ Hypothecation to be insured for full
value.
a. Pre -sanction check of the site/collateral security to be done by BM/
Inspection FO before sanctioning the loan.
b. Post disbursements quarterly inspections to be made.
• To be processed through LOS only.
0.5 % of Interest received based on No. of collections
Incentive to received.
Special Features
Anchor Co. Incentive amount is Negotiable on case to case basis.

ABU Circular - Sl. No. 1269/2015-16, dated 13.01.2016


RBU LHO MUMBAI Cir . No. : 173 OF 2009-10, dated 13.03.2010
Reference Broiler + : SOP - Standard Operating Procedure
Scoring Models - ABU Cir. Sl No. 834/2014-15, dated 13.10.2014
Agri-eManual - by eSBH LC Aurangabad

Prepared by :
Shri. N.G. Masare
9822606389

Page No. 61 of 63
POULTRY EFFICIENCY CHECK RATIOS FOR : B R O I L E R.
Sr. No. Ratio Broiler

Gross Income( from Sale of meat, Gunnies & manure)


1 Benefit Cost Ratio BC = ---------------------------------
Total cost of Inputs used
Value of meat produced
2 Feed Price Ratio FP = ---------------------------------------------
Value of feed consumed
Total Feed consumed by the batch (Kgs)
Feed Efficiency
= ----------------------------------------------------------
or FE
3 Total live weight of the batch (Kgs)
Feed Conversion /FC
Ratio
1 : 2 is an ideal at 45 days of Age
Feed consumed by the batch
Broiler Performance
4 BPFF = ------------------------------------------- X 100
Effeciency Factor
Live weight of batch
Total Live weight of batch
Average weight of
5 AWB = -----------------------------------------------------
the Batch
Total No. of birds ( on the last day)
Av. Wt. of bird at Sale (Kg) x ( 100- Mort. %)
Broiler Efficiency
6 BEI = -------------------------------------------------------
Index
Av. days taken to reach market wt. x FCR x 2
Av. Wt. of birtd X Liveability %
7 Brioler Production BPN = ----------------------------------------------------
No. FCR X Age in days X 10
30(EW) 2 P
= ---------------------------------
BW X F
EW = Average egg weight in Gms
Performance
8 PEI P = % of egg production
Efficiency Index
BEW = Agerage body weight in Gms
F = Average feed consumption per bird
per day
• PEI of more than 40 is desirable
Gross income from a batch - Feed cost of the batch
Gross Margin per
9 = ------------------------------
unit of floor space
Area of house (or pen) used.
Total constructed area
Construction = ----------------------------- ----------- X 100
10 CC
coefficient Total farm Land Area
25 to 35 is an ideal
No. of Birds started - No. of birds left at the end
Mortality = -------------------------------------
11 MR
Rate No. of birds Started.
• Should be less than 4 %
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