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Farm Sector Development Department
1. Genesis
 
 
The Farm Sector Development Department (FSDD) was created out of NABARD’s erstwhile Development Policy Department - Farm Sector.
 
The objective of the department is the implementation of multifarious farm sector initiatives aimed at:
 
a. Conservation and management of natural resources
b. Accelerating ground level credit flow by rural financial institutions
c. Promoting incremental agricultural production and productivity
d. Generating rural employment 
e. Raising the standard of living of rural poor through credit and grant
 
FSDD manages the following funds: 
 
a. Farm Sector Promotion Fund (FSPF)
b. Watershed Development Fund (WDF)
c. Tribal Development Fund (TDF)
d. Producers Organization Development Fund (PODF) 
e. ‘Producers’ Organization Development and Upliftment Corpus’ (PRODUCE) Fund
f. Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
g. Credit Guarantee Scheme for Farmers Producers Organisations (FPOs)
 
2. Core functions of the department
 
a. Farm Sector Promotion Fund (FSPF)
 
 Farm Sector Promotion Fund (FSPF) was created in NABARD, by the merger of two erstwhile funds, viz. Farm Innovation and Promotion Fund (FIPF) and Farmers' Technology Transfer Fund (FTTF), on 26 July 2014.  The Fund focusses on promoting innovative and feasible concepts/projects and transfer of technology for enhancing production and productivity in agriculture and allied sectors.  
 
b. Watershed Development Fund (WDF)
 
 NABARD has been implementing watershed development projects since the inception of Indo-German Watershed Development Programme (IGWDP) in India during 1990s. The participatory watershed development concept and methodology has proved to be a successful initiative in enhancing the productivity, production and improving livelihood security of rural community. 
 
To replicate the initiatives further in the drought prone areas of the country, the Union Finance Minister, in his budget speech for 1999-2000 had announced creation of a Watershed Development Fund (WDF) in NABARD. WDF comprises a contribution of 100 crore each by Ministry of Agriculture (MoA,) Government of India and NABARD.
 
c. Tribal Development Fund (TDF)
 
 NABARD has been supporting tribal development through concessional rates of refinance, separate line of credit to agencies supporting tribal families, promotional activities, etc. However, a key concern for NABARD has been the sustainability of tribal livelihoods.
 
Based on the successful experience of Adivasi Development Programmes, NABARD embarked upon an ambitious program of replicating the ‘wadi’ (meaning a small orchard of one or two acre with multiple crops) model across the country. In this direction, Tribal Development Fund (TDF) was created by NABARD with initial corpus of Rs. 50 crore, out of its profits for the year 2003-04. The Fund has grown over the years and the credit balance as on 31 March 2020 was Rs. 1143 crore. The projects under TDF are implemented by partnering with State Governments, Krishi Vigyan Kendras (KVKs), NGOs and corporates. A comprehensive tribal development programme having small orchard as the core component (wadi) is being implemented for improving the livelihood of tribal population.
d.  Promotion and Development of Farmer Producer Organizations
 
 Producer Organization (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc. Producer Organizations have been considered to be one of the effective means of linking small producers with the agricultural value chain for the purpose of enhancing net income of producers. NABARD provides financial and development support to POs through four funds:
 
i. Producers Organization Development Fund (PODF)
 
Recognizing the strength of POs, NABARD created a dedicated fund “Producers, Organization Development Fund (PODF)” during 2011, to support these organizations on three levers i.e. credit facilitation, capacity building and market linkage support. In addition, grant support is also made available for business incubation services, skill building, documentation of successful models, ICT application in business management, etc.  
 
ii. ‘Producers’ Organization Development and Upliftment Corpus’ (PRODUCE) Fund
 
PRODUCE Fund of Rs. 200 crores was created by the Government of India in NABARD in 2014-15 for building of 2000 Farmer Producer Organizations (FPOs) in the country. The aim of the PRODUCE Fund is to promote new FPOs and support their initial financial requirements, to make them credit worthy, commercially vibrant and sustainable business enterprise of farmers.
 
iii. Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
 
Hon’ble Prime Minister launched the Central Sector Scheme Formation and Promotion of 10,000 FPOs over the period of 5 years across the country as per announcement made during budget speech 2019-20. The scheme will be implemented by 3 major Implementing Agencies viz. NABARD, Small Farmers Agribusiness Consortium (SFAC) and National Cooperative Development Corporation (NCDC). The aim of the scheme is to promote new FPOs and support their initial financial requirements, to make them credit worthy, commercially vibrant and as a sustainable business enterprise of farmers. 
 
iv. Credit Guarantee Scheme for Farmers Producers Organisations (FPOs)
 
In accordance with Central Sector Scheme for FPOs, Government of India, NABARD would create and operate a Credit Guarantee Scheme for FPOs, with a total corpus of Rs. 1000 crore, both NABARD and contributing Rs. 500 crore each. The objective of the Credit Guarantee Scheme (CGS) is to provide credit guarantee cover (CGC) to all eligible Lending Institutions to enable them to provide collateral-free direct loan to FPOs by minimising their lending risks.  This scheme is expected to ensure higher credit flow to FPOs for their business development.
 
3. Broad Achievements of the Department
 
a. Farm Sector Promotion Fund (FSPF)
 
During 2019-20,under FSPF, Rs.17.96 crore  was disbursed for various prmotional initiatives in agriculture like- innovative projects in agriculture and allied Sectors, enhancing  agriculture productivity  and income of the farmers, creating market access, promotion of climate resilient agriculture in vulnerable / distressed districts, agricultural value chains,Farmers’ Clubs and their collectives including training and capacity building of farmers, etc. 
 
  • Under Detailed Project Report mode (DPR), 138 projects were sanctioned including five projects under Internet of Things (IOT) during the year 2019-20, involving grant commitment of Rs.14.30 crore. An amount of Rs.9.98 crore was disbursed as grant during the year towards implementation of various new and ongoing projects.
  •  Further, under Capacity Building for Adoption of new Technology (CAT) programme, 266 exposure visits were undertaken to build the capacity of around 6787  farmers in collaboration with select Research Institutes like KVKs, SAUs, ICAR and ICRISAT, etc., for adopting new/ innovative methods of farming. A grant assistance of Rs.2.03 crore was provided during the year under CAT initiative.
 
b. Watershed Development Fund (WDF)
 
NABARD entered into watershed development activities through KfW-assisted Indo German Watershed Development Programme in the year 1992 in Maharashtra, wherein participatory approach of watershed development was launched in India on pilot basis for the first time. Subsequently, in order to demonstrate effectiveness of these interventions, Watershed Development Fund (WDF) was set up in NABARD in 1999-2000 with an initial corpus of Rs. 200 crore contributed by GoI and NABARD in equal proportion. The Fund has been augmented over the years from the interest differential earned under RIDF and interest accrued on the unutilized portion of the Fund.
 
As on 31st March 2020, cumulative sanction under all programmes stood Rs. 2147.79 crore, covering an area of 23.05 lakh ha. An amount of Rs.  1804.54 crore has been released so far, against3295 projects sanctioned, 1701 projects have been completed successfully. 
 
The programme-wise details are given as under:
 
Programme No. of Projects No of projects completed Area (lakh ha) Amt sanctioned (Rs. lakh) Amt released (Rs. lakh)
Indo-German Watershed Development Programme (IGWDP-4 States) 326 300 3.35 33,846 32,281
PM’s Package 758 686 5.96 89,714 80,450
Watershed Development Fund (WDF) 999 367 7.61 57,816 43,231
Integrated Watershed Development Programme (IWDP) - Bihar 79 77 0.80 6,000 5,500
Kutch Drought Prone Programme (KDPP) - Gujarat 10 10 0.10 350 330
WDF-Climate Proofing (CP) 168 0 1.52 7,618 4,143
KfW Soil Projects 177 0 1.10 9,030 6,404
Sustainable Development Plan (SDP) 466 221 1.97 4,507 4,177
Indo-German Watershed Development Programme –Climate Proofing (IGWDP-CP) 40 40 0.24 2,254 2,132
Springshed based watershed development programme 67 0 0.18 1001 276
IWMS 205 0 0.21 2,643 1,529
Total
3,295 1,701 23.05 214,779 180,454
 
  
 Currently, the following Watershed Development Programmes are being implemented by NABARD: 
 
  • Participatory Watershed Development Programme under Watershed Development Fund (WDF)
  • Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany, including WDF Climate Proofing
  • Springshed-based Development Projects
  • Sustainable Development Plan
  • Climate Proofing of Watersheds under WDF Programme
  • Integrated Water Management Scheme
  • Web-based monitoring of watershed projects
 
1. Participatory Watershed Development Programme
 
Participatory watershed development programmes are implemented in two phases – (i) Capacity Building Phase (CBP) and (ii) Full Implementation Phase (FIP) in participatory mode, with the active involvement of Village Watershed Committees (VWCs) and Project Facilitating Agency (PFA). The projects are being implemented in 18 states and Union Territories, namely Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal. 
 
As on 31st March 2020, 999 WDF projects have been sanctioned with financial outlay of Rs. 578.16 crore, against which an amount of Rs. 432.31crore has been disbursed. 
 
2. Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany
 
The soil restoration programme of Phase-I is being implemented by NABARD across five states with a support of €10 million from KfW, Germany during August 2016 to June 2020. Under Phase- I, 123 climate proofing projects are being implemented in completed watershed projects across 32 districts in the states of Andhra Pradesh,
Chhattisgarh, Karnataka, Odisha and Telangana. The districts within the identified states were selected based on the Rainfed Area Priority Index (RAPI) developed jointly by Central Research Institute for Dryland Agriculture (CRIDA) and Indian Agricultural Statistics Research Institute (IASRI). 
 
Implementation of KfW Soil Project Phase- II was started in 2019-20 in 2 states viz. Kerala and Jharkhand, in 54 projects. Cumulatively, under KfW Soil Programme, as on 31 March 2020, 177 projects have been sanctioned with a total financial commitment of Rs.  90.30 crore, against which an amount of Rs. 64.04 crore was disbursed.
 
3. Springshed Development Watershed Development Programme
 
 In order to revive and rejuvenate springs which are lifeline of the North Eastern Region (NER) and minimize the adverse impact of climate change on water availability both for human consumption and irrigation, especially during off-season, NABARD has launched an innovative and integrated springshed-based participatory watershed development programme in the NER, including Sikkim, on a pilot basis with financial support under WDF since January 2017. Now, these projects are extended to other hilly areas of states of Kerala, Maharashtra, Uttarakhand, Himachal Pradesh and UT of Jammu & Kashmir. As on 31 March 2020, 67 sspringsheds development projects have been sanctioned with financial outlay of Rs. 10.01 crore, against which Rs. 2.76crore has been disbursed.
 
4. Sustainable Development Plan (SDP)
 
Building on the success of the initial watershed programmes, NABARD has reoriented its approach towards sustainable development of watersheds by making the programme much more holistic. The approach includes technology transfer, agriculture extension, credit intensification, integrated pest management (IPM), integrated nutrient management (INM), promotion of Framers’ Producer Organizations (FPOs), etc. Need- based capacity building and leadership development of the watershed community and convergence of various centrally sponsored schemes and programmes also form part of the Sustainable Development Plan. As on 31 March 2020, 466 SDPs have been sanctioned. 
 
5. Climate-proofing in watershed projects
 
To reduce vulnerability of climate change in rainfed areas and enhance agriculture productivity, production, livelihood and income of the farmers, NABARD is implementing climate change adaptation initiatives in its watershed projects under WDF in eight states (Bihar, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha, Telangana and Tamil Nadu). These projects are planned and designed based on the climate change vulnerability assessment done for the watershed communities and various sectors of agri& allied activities. Based on the vulnerability of the sectors and the community to climate change impact, the project interventions are identified and implemented with financial support from NABARD under WDF. As on 31 March 2020, 168 climate proofing projects were sanctioned with a financial assistance commitment of Rs. 76.18 crore.
 
6. Integrated Water Management Scheme (IWMS)
 
During 2017, NABARD has conducted Water Conservation Campaign across 250 districts with focus on promoting efficient water conservation/management technologies and other water-smart practices in agriculture.  In order to consolidate the outcomes of the water conservation campaign and to carry forward the water conservation agenda more aggressively for mitigating the water scarcity situation and improving agricultural productivity in select vulnerable villagers, NABARD came up with Integrated Water Management Scheme (IWMS) through watershed approach for implementation across 50 districts, including 40 aspirational districts of the country, covering 250 villages across 20 states. As on 31st March 2020, 205 projects (each project covering  a cluster of 5 villages) have been sanctioned under IWMS.
 
7. Web-based monitoring of watershed projects
 
 NABARD had signed an MoU with National Remote Sensing Centre (NRSC), Hyderabad for monitoring of watershed projects by leveraging geospatial technologies. A web portal and mobile app have been developed under this initiative for uploading the data by Project Facilitating Agencies (PFAs). The portal is facilitating NABARD in real time tracking of physical and financial progress and impact evaluation (change detection) of watershed projects (‘pre’ and ‘post’ stages) through analysis of satellite images, generation of MIS reports on real time basis and mapping as well as geo-tagging of assets created in the project areas through mobile app. 
c. Tribal Development Fund (TDF)
 
As on 31 March 2020:
 
Total number of projects sanctioned: 791 
No. of states and union territories covered under the programme: 29 
Number of tribal families benefitted: 552755
Total financial assistance sanctioned from TDF: Rs.2302.29 crore
o Grant assistance: Rs.2161.60 crore
o Loan assistance:   Rs.140.69 crore
Total financial assistance disbursed: Rs.1655.21 crore
o Grant assistance: Rs.1616.48 crore
o Loan assistance:      Rs.38.73 crore
 
State-wise details:
 

S. No.

Name of State/ Union Territories

No. of Projects

No. of Families

Total Financial Assistance Sanctioned

1

A & N Islands

4

2034

3.83

2

Andhra Pradesh

57

39587

161.32

3

Arunachal Pradesh

4

2406

11.10

4

Assam

17

6050

28.66

5

Bihar

24

15697

72.78

6

Chhattisgarh

85

58216

241.11

7

Gujarat

52

44310

178.56

8

Himachal Pradesh

9

2772

15.23

9

UT of Jammu & Kashmir and Ladakh

2

720

4.30

10

Jharkhand

47

31835

142.58

11

Karnataka

30

24069

98.83

12

Kerala

21

9493

44.30

13

Madhya Pradesh

83

69627

279.68

14

Maharashtra

52

48082

185.10

15

Manipur

5

1300

6.87

16

Meghalaya

12

4230

18.74

17

Mizoram

9

3000

14.59

18

Nagaland

12

4950

21.31

19

Odisha

62

50519

205.00

20

Rajasthan

57

48944

183.98

21

Sikkim

5

2038

9.30

22

Tamil Nadu

18

11278

52.63

23

Telangana

32

19832

84.00

24

Tripura

3

800

3.82

25

Uttar Pradesh

24

14754

68.97

26

Uttarakhand

7

3720

14.41

27

West Bengal

56

31692

148.04

28

Dadra Nagar Haveli

1

800

3.13

29

HO sanctioned (bee keeping in 2 States)

1

0

0.12

Total

791

552755

2302.29

 
d. Promotion and Development of Farmer Producer Organizations
 
Under PRODUCE Fund, a grant assistance of Rs. 200.03 crore has been sanctioned to 792 Producer Organization Promoting Institutions (POPIs) for promotion and nurturing of 2,154 FPOs. As on 31st March 2020, 2095 FPOs have been registered under different statutes/ legal forms and undertaking various agribusiness activities. The POPIs are given necessary trainings and hand holding support through 19 Resource Support Agencies (RSAs). Implementation period of PRODUCE Fund was up to 31.03.2020
NABARD has developed a portal named ‘NABFPO.IN’ and digitized the FPO data including members’ profiles for use by the stakeholders. Broad details of FPOs are available on NABARD website (www.nabard.org).
 
Performance Measurement Tool has been developed for the assessment and monitoring of overall performance and facilitating designing of need based interventions & credit linkages for building robust organization. 
With a view to increasing participation of farmers and FPOs on the trading platform of Commodity Exchanges, NABARD and SEBI jointly organized National Seminar, for the key stakeholders to develop road map for linking the FPOs with Commodity Exchanges for improved price discovery and realization of enhanced price of the agricultural produce by the farmers.
 
NABARD has, with the support of BIRD, introduced a Short term Certificate course for CEOs of FPOs, which is being organized through 10 Anchor agencies in various states. As on date, 220 CEOs have completed this course.  
 
To increase the credit flow and to aware the banks about the type of credit needs of FPOs, NABARD has developed various type of financing model. Various financing model uploaded on BIRD website. 
Considering the positive outcome of PRODUCE Fund, NABARD has introduced a scheme for promoting another 3000 FPOs by adopting low cost model and leveraging financial resources under its various promotional and developmental programmes/ schemes. As on 31st March 2020, 2296 FPOs have been promoted across 31 States under this initiative.
 
4. Ongoing projects and schemes
 
a. Farm Sector Promotion Fund (FSPF)
 
  • Farmers’ Club Programme
  • Capacity Building for Adoption of new Technology (CAT)
  • DPR Projects for productivity enhancement 
b. Watershed Development Fund (WDF)
 
  • Participatory Watershed Development Programme under Watershed Development Fund (WDF)
  • Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany, including WDF Climate Proofing
  • Springshed-based Development Projects
  • Sustainable Development Plan
  • Climate Proofing of Watersheds under WDF Programme
  • Integrated Water Management Scheme
  • Web-based monitoring of watershed projects
 
5. Additional Information
 
Contact Information:
 
Shri Nilay D Kapoor
NABARD, Head Office
5th Floor, ‘A’ Wing
Plot: C-24, G Block
Bandra Kurla Complex, Bandra (East)
Mumbai - 400 051
Tel.    : (+91) 022 - 26530094
Fax    : (+91) 022 – 26530009