chapter iii profile of the study area...

CHAPTER III

PROFILE OF THE STUDY AREA –

KANYAKUMARI DISTRICT

Location

The District is situated between 8o 8’ – 8

o 29’ northern

latitude and 76o 9’ – 77

o 41’ eastern longitude, occupying a tota1 area of

1672 Sq.Km. It is bordered with Thirunelveli District in the north and

northeast, Kerala in the north-west, the Arabian Sea in the west, the Indian

Ocean in the south, and the Gulf of Mannar as well as the Bay of Bengal in

the east. It has a coastline of 68 Km stretching on three sides.

History

Kanyakumari’s history is an ancient one and it dates back to

the sangam age. It is a cradle of civilization in the southern tip of the Indian

peninsula. The district has a large number of historic monuments and

temples. A series of kingdoms are known to have ruled, this territory and

the most important being the Cheras, the Cholas and the Pandyas. Up to the

93

early fifties of the last century, this region was part of the now defunct

Travancore Samasthanam, which is the southern part of the present Kerala

State. The Tamil-speaking majority population struggled to get this

territory merged with Tamil Nadu and thus Kanyakumari District became a

part of Tamil Nadu after the reorganization of the States of the Indian

Union in 1956.

95

On the recommendations of the States Reorganization

Commission, Agastheeswaram, Thovalai, Kalkulam, Vilavancode and

Senkottai taluks were given to Tamil Nadu and the first four of the taluks

were grouped to form the new Kanyakumari District. The present

Kanyakumari District came into existence with Nagercoil as its

headquarters on November, 1956.

Climate and Rainfall

The Kanyakumari District enjoys a favourable agro climatic

condition suited to the growth of different varieties of crops such as paddy,

banana, tapioca, coconut and rubber. Semi arid tropical monsoon type of

climate prevails in the plains. In the plains the maximum and the minimum

temperatures are 37.5oC and 25.7

oC respectively. Heat becomes intense in

April and shoots further up in May unless moderated by rains. The

proximity of the Western Ghats and the sea as well as the south-west and

north-east monsoons greatly influence the climate of the district.

The district has a unique advantage of the rainfall during the

south west and north east monsoon. The occurrence of southwest monsoon

is from June to September and northeast monsoon from October to

December is responsible for flourishing cultivation crops like rubber in the

district. Rainfall is generally high in the northern parts of the district. The

annual rainfall ranges between 90-160cm and the average is 140cm. The

annual average rainy days are normally 85-90 days. It is significant that

96

next to the Nilgiris district. The highest annual average rainfall has been

recorded only in the Kanyakumari District. Hence, this district is suited for

raising all sorts of crops like food crops, plantain crops, cash crops, fibre

crops and tuber crops.

There are considerable variations in the annual rainfall both

in time and space from more than 2000m.m at the dam sites in the north-

western part to 800mm to 900mm in the tail end of the irrigated areas in

the south-east portion of the district.1 A season-wise distribution of rainfall

in the Kanyakumari District is presented in Table 3.1.

TABLE 3.1

SEASON-WISE ACTUAL RAINFALL IN KANYAKUMARI

DISTRICT (1997-98 TO 2007-08)

Year

South

West

Monsoon

North

East

Monsoon

Winter

Season

Hot

weather

Season

Total

1997-1998 760.0 653.4 2.8 240.4 1656.9

1998-1999 667.8 1069.3 52.7 458.6 2248.4

1999-2000 590.4 602.0 204.1 138.8 1535.3

2000-2001 894.6 360.3 73.9 419.2 1748.5

2001-2002 650.9 484.8 28.2 341.6 1505.5

2002-2003 239.8 769.1 9.5 188.6 1207.6

2003-2004 230.9 486.2 10.5 380.6 1108.2

2004-2005 603.4 337.4 32.8 461.9 1435.5

2005-2006 389.3 549.9 38.6 272.1 1249.9

2006-2007 644.4 611.5 7.38 290.2 1553.9

2007-2008 803.9 506.6 71.7 413.1 1795.3

Source: Assistant Director of Statistics, Nagercoil, 2008.

1. Gazetteer of India, Tamil Nadu, Kanyakumari District, p.302.

97

Natural Division

Based on the agro-climatic and topographic conditions,

Kanyakumari District is divided into three natural divisions as follows.

1. The mountainous region of the north-east along the Western Ghats

in the Vilavancode and Kalkulam taluks and the hill bases are called high

lands, suitable for raising crops like rubber, cloves, coffee, coconut, pepper

and pineapple.

2. In the extreme south east, south and south west there is the 68

kilometer long sea coast called the lowlands, ideal for growing, coconut,

cashew etc.

3. Between the uplands and low lands is found a strip of undulating

valley known as mid lands with broad patches of coconut groves, smiling

paddy fields, tapioca and banana farms.

Soil

Agriculture in any region depends on its soil conditions

which constitute the physical basis for the same. Contrasts in agriculture

are caused by differences in soil textures, drainage and fertility.2 Seasonal

rains and the fertility of the soil in the Kanyakumari District enables the

farmers to raise different varieties of crops. While climatic variations all

2. Shirla, D.W., “Agricultural Geography of Great Britain”, Pergamom Press, Oxford, 1971,

p.20.

98

over the district are not very conspicuous, soil conditions in the different

parts of the district differ considerably within short distances.

There are three kinds of soil, viz., sandy soil, laterite soil and

red soil. Sandy soil is found along the high lands, laterite soil in areas with

high rainfall and red soil in the mid lands. Laterite soil with moisture

holding capacity with varying amounts of aluminium hydroxide is found in

the Thiruvattar, Munchirai, Kurunthancode, Rajakkamangalam, Killiyoor,

Thuckalay and Melpuram blocks. In these blocks the chief crops are

tapioca, rubber, coconut and spices. Red soil is classified into red loam soil

and red sandy soil. Red soil has low moisture holding capacity and so it is

not as fertile as the lateritc soil. Mixed type of red and alluvial soil occur in

Agasteeswaram and Thovalai blocks.3 Red soil and laterite soil are

suitable for rubber cultivation in the traditional rubber growing areas of

Kerala and Tamil Nadu.4

Irrigation

Irrigation is the artificial application of water to soil for the

purpose of crop production. As the timing and amount of rainfall are not

adequate to meet the moisture requirement of crops, irrigation is essential

to raise crops and meet the need for food and fiber.5 The irrigation system

3. Annual Credit Plan for Kanyakumari District, Lead Bank cell, IOB, 2008-09, p.6.

4. Natural Rubber, “Agro Management and Crop Processing”, Rubber Research Institute of

India, Kottayam. 2005, p.174.

5. Gazetteers of India, Tamil Nadu, Kanyakumari District, 1995, p.291.

99

in the Kanyakumari District consists of a few non-perennial rivers like the

Paralayar, Kothaiyar, Thamiraparani, Valliar, Chittar and Pazhayar.

Originating from the Western Ghats and running across the gentle slopes of

the midlands, these rivers confluence with the waters of the Arabian sea on

the west.

The Paralayar takes its course from the Mahendragiri hills in

the Thovalai taluk and flows in a south – westerly direction to a distance of

37 kilometres and joins with Kothaiyar at Thiruvattar to form the

Kuzhithurai river known as Thamiraparani. The Thamiraparani flows

through Kalkulam and Vilavancode taluks covering a distance of 59

Kilometers and merges into the Arabian sea.6 The Kothaiyar originates

from the southern extremity of Muthukuzhi vayal plateau and irrigates

Nanjinaud, comprising the Thovalai and Agasteeswaram taluks. Paralayar

and Kothaiyar are the two main tributaries of the Thamiraparani river. The

Vadasery river also known as Pazhayar runs through Thuvalai and

Agasteeswaram taluks and finally flows into the Manakudy estuary after a

course of 23 miles and providing irrigation to Boothapandi, Nagercoil,

Kottar, Thazhakudi and Suchindram.

Since the beginning of the 20th

century, the Government of

Travancore bestowed serious attention to irrigation and planned to form

6. Census of India, District census Handbook Kanyakumari, The Director of Census

Operation, Part XIII A and B, Tamil Nadu, p.9.

100

storage reservoirs for impounding water irrigation during periods of

drought or insufficient rainfall. The efforts of the government in this

direction resulted in the construction of the Petchipparai dam in 1906 and

the Perunchani dam in 1953 across Kothaiyar and Paralayar respectively.7

The Kothaiyar system consisting of the Petchipparai and Perunchani dams

as well as a network of channels irrigates 25900 hectares of double crop

land in the district. The main channels in the district are the Thovalai

channel, Anandanar channel, Padmanabhapuram Puthanar channel and the

Nanjinaud – Puthanar channel including Pazhayar.8 The Pandian dam and

the Puthan dam across Paralayar are only diversion weirs. Such diversion

weirs have been built at Thirparappu and Aruvikkarai also. Two reservoirs,

viz. Chittar I and Chittar II have been built to improve the storage capacity

of the Petchipparai and Perunchani reservoirs.9 Surface water stored up in

reservoirs is distributed through a network of irrigation canals.

Besides the reservoirs and a network of irrigation canals, tank

irrigation also plays a significant role in providing water for agriculture.10

There are in all 1205 tanks, including the non-system Chembagaraman-

puthoor Periakulam with an ayacut area of 19400.47 hectares. The

percentage of area irrigated by tanks to the net area irrigated is 56.6

7. Gazetteers of India, Tamil Nadu, Kanyakumari District, pp.297-298.

8. Ibid., p.295.

9. Ibid., p.301.

10. Agrostat, Joint director of Agriculture, Kanyakumari District, 2006, p.126.

101

percent.11

These tanks are fed mainly by canals Small rain-fed tanks are

found in large numbers all over the district. The total area directly and

indirectly irrigated by channels is 31758 hectares and the number of tanks

fed by them is 1205.

Table 3.2 gives the details of the lands irrigated by various

sources.

TABLE 3.2

IRRIGATION IN KANYAKUMARI DISTRICT DURING 2008

Type of Irrigation Area Irrigated

(in Hectares) Percentage

Canals 11114 38.86

Tanks 15794 55.23

Wells 1220 4.27

Other Sources 468 1.64

Total 28596 100.00

Source: Department of Agriculture, Nagercoil, 2008.

Administrative Set-up

The district is divided into two revenue divisions viz.

Padmanabhapuram and Nagercoil, having headquarters at Thuckalay and

Nagercoil respectively. There are four taluks namely, Vilavancode,

Kalkulam, Agastheeswaram and Thovalai and 82 revenue villages. The

district has four municipalities, Nagercoil, Padmanabhapuram, Colachel

and Kuzhithurai. The district has been divided into 9 Panchayat Unions

11. Gazetteers of India, Kanyakumari District, 1995, p.271.

102

namely Agastheeswaram, Thovalai, Rajakkamangalam, Kurunthencode,

Thuckalay, Thiruvattar, Killiyoor, Melpuram and Munchirai.

TABLE 3.3

ADMINISTRATIVE SET-UP IN KANYAKUMARI DISTRICT

DURING 2008

Sl.

No.

Name of the

Development

Division

Name of

Panchayat

Union

Office

Location

Area

(Sq.Km)

1. Nagercoil

Agastheeswaram

Rajakkamangalam

Thovalai

Kurnuthencode

Perumapuram

Pazhavilai

Boothpandy

Kurunthencode

143.26

135.49

360.91

100.54

2. Padmanabhapuram

Thuckalay

Thiruvattar

Killiyoor

Munchirai

Melpuram

Kozhiporvilai

Thiruvattar

Thoayavattam

Munchirai

Pacode

127.41

88.37

1 38.86

71.45

27.57

Source: District Collectorate, Nagercoil, 2008.

Population

According to 2001 census, the total population of

Kanyakumari District was 16,76,034. The male population is 8,32,269 and

the female population is 8,43,765. In this district, the rural population is

more than the urban population. The rural population is 5,82,107 and the

urban population is 10,93,927. The density of population is high with 995

per Sq.km. The total literates in this district are 13,08,322.

103

TABLE 3.4

AREA, POPULATION AND LITERACY IN KANYAKUMARI

DISTRICT DURING 2008

Name of the

Block

Municipalities

Area

(Sq.km.)

Population Literate

Persons Male Female Female Male Female

1 2 3 4 5 6 7 8

Agasteeswaram 133.12 148419 73260 75159 118778 60120 58658

Rajakkamangaam 120.16 137254 68119 69135 108539 55337 53209

Thovalai 369.07 110719 55057 55662 85132 44101 41031

Kurunthencode 106.85 165070 81823 83247 126882 64369 62513

Thuckalay 130.33 167262 82488 84774 131428 66461 64967

Thruvattar 344.80 161619 80220 81399 122710 62524 60186

Killiyoor 82.70 156387 78663 77724 119931 62173 57758

Munchirai 72.01 177225 89122 88103 131461 68366 63095

Melpuram 271.89 179535 88578 90957 137211 70560 66651

Nagercoil

Muncipaty 24.27 208179 102907 105272 175248 88590 86658

Padmanabhapuram 6.47 20075 9967 10108 16282 8372 7910

Colachel 5.18 23787 11996 11791 18008 9275 8733

Kuzhithurai 5.15 20503 10069 10434 16712 8419 8293

Total 1672.00 1676034 832269 843765 1308322 668667 639655

Source: Statistical Handbook, Department of Economics & Statistics,

2008.

Land Use Pattern

The Kanyakumari District extends over a geographical area

of 1,67,200 hectares with net sown area of 79,323 hectares which accounts

for 47.4 percent of the total area. The forest occupies 54155 hectares which

accounts for 32.4 percent. The land use pattern in the Kanyakumari District

is presented in Table 3.5.

104

TABLE 3.5

LAND UTILIZATION DURING 2008-2009

Classification Area

(in hectares) Percentage

Forest 54155 32.4

Barren and uncultivable waste 3149 1.9

Land put to non-agricultural uses 26890 16.2

Cultivable waste - -

Permanent pastures and other grazing land 133 0.1

Land under miscellaneous use 581 0.3

Current fallow 1433 0.8

Other fallow land 1536 0.9

Net area sown 79323 47.4

Total geographical area 1,67,200 100.0

Source: Annual credit plan, Kanyakumari district, Tamilnadu 2008-09,

p.11.

Cropping Pattern

Rice is the principal food crop in this district. In the hills,

plantation crops such as tea, coffee, rubber and pepper are raised. In the

lower slopes of the hills tapioca and banana are raised as rain-fed crops. In

the plains paddy, tapioca, coconut and vegetable are raised as main crops.

Paddy, tapioca, coconut and rubber are the main crops in this district.

Kanyakumari District is the only one in Tamil Nadu where rubber is grown

on a large scale.

Paddy

Paddy is the most predominantly cultivated crop of this

105

district in an area of 31000 hectares. It is grown in two seasons. The first

crop is sown in April – June (Kannipoo) and the second crop is raised in

September – October (Kumpapoo).

Tapioca

Tapioca is raised as a subsidiary food crop in this district.

The climate and soil conditions are quite suitable for cultivation of this

crop. It is purely raised as rainfed crop in Kalkulam and Vilavancode taluks

and as irrigated crop in some area of Agastheeswaram taluk of this district.

The tapioca stems and leaves are used for fuel purposes in rural house hold.

Coconut

Coconut is a major plantation crop, cultivated extensively in

this district. The climatic condition of this district is quite conducive for

coconut cultivation. The stalk and spadix obtained from coconut trees are

very good non-commercial energy sources for households. Most of the

households have been using these sources of energy traditionally for

cooking and heating purposes.

Rubber

The northern part of the district, which is at the foot of the

Western Ghats, is highly suitable for cultivation of rubber. Hence the state

has been taking special efforts to expand the area under this crop. These

rubber plantations produce not only latex but also wood logs and twigs as

well. The rubber trees are cut down after 20 to 25 years of plantation.

106

Forest

The forests are highly enchanting with pleasant shoals,

beautiful grasslands, Panoramic valleys, hillocks, singing streams, vast

stretches of rubber plantations, valuable teak plantations and an immense

treasure of medical plants. The Government reserve forests occupy an area

of 50486 hectares. They cover 30.2 percent of the geographical area of

Kanyakumari District. The yield per hectare of forest is probably the

highest in TamilNadu with an yield of 200 to 275 cubic meters of timber.

Electricity

Kanyakumari District has one hydro-electric project, which is

located at Kodayar. The installed capacity of this power plant is 6 MW and

4 MW. This project has two plants.

Roads

The district has a good network of roads connecting the

important villages and towns in the district. Important commercial centers

like Vadassery, Kottar, Manavalakurichi, Kaliakkavilai, Marthandam,

Puthukadai and Karungal are connected by roads with other districts in

Tamil Nadu and the states of Karnataka and Kerala.

The total length of roads in the district is 1863 km. They

cover 62.4 km of national highways, 48 km of state highways, 975 km

maintained by municipalities, district administration, and public works

department. The remaining roads are maintained by panchayats and

107

panchayat unions. The length of the roads in the district per 100 sq.km of

area is 110 km as against the state average of 30 km.12

Railways

This district is linked with other places throughout the

country by means of railways. The distance of the railway line from

Nagercoil to Trivandrum is 66 km. From Nagercoil to Tirunelveli Junction

the distance is 77 km and from Nagercoil to Cape Comorin is 15.51 km.

The length of broad gauge railway line in the district is 70.41 km. The

important railway stations are Kuzhithurai, Eraniel, Palliyadi, Nagercoil,

Thovalai, Suchindrum, Agasteeswaram and Cape Comorin.13

The long and the short of what has been said so far about the

study area is that it has been endowed variously and copiously with

enormous reserve of environmental resources which can maintain a steady

supply of every type of non-commercial energy source for years on end.

Banking Sectors in Kanyakumari District

The banking structure in the district comprises 19 public

sector and 10 private sector Commercial Banks, with 144 branches, two

branches of Pandyan Grama Bank, Kanyakuamri District Central

Cooperative Bank Ltd., with 17 branches, including its head office branch,

and 114 Primary Agriculture Cooperative Societies, 5 Primary Cooperative

12. Credit Plan for Kanyakumari District, Tamil Nadu, Indian Overseas Bank, Madras, p.4.

13. Kanyakurnari District, The Hindecon, Vol.1992, p.30.

108

Agriculture and Rural Development Banks (PCARDBs) affiliated to Tamil

Nadu Cooperative State Agriculture and Rural Development Bank and a

branch each of Tamil Nadu Industrial Cooperative Bank

(TAICOB)/Peoples’ Cooperative Bank (PCB) / Tamil Nadu Industrial

Investment Coorporation (TIIC), in all having 285 units in the district. The

health of the credit institutions plays a major role in achieving the desired

flow of credit and its recycling for further development. The working

results of the credit institutions in the district are quite encouraging except

in respect of PCARDBs which suffer from high degree of overdues, low

volume of business etc. Pandyan Grama Bank recently opened two

branches making its entry to the district.

Performance Parameters: Table 3.6 shown the Performance Parameters

of various Banks in Kanyakumari District 2005-2006 to 2007-08.

TABLE 3.6

PERFORMANCE PARAMETERS OF VARIOUS BANKS IN

KANYAKUMARI DISTRICT 2005-2006 TO 2007-2008

Sl.

No

Ag

ency

No

.of

Bra

nch

es

Deposits % of

share as

on

31/03/08

2005-06 2006-07 2007-08

Amt. % * Amt. % * Amt. % *

1 CBs 144 2322.68 13.10 2645.04 13.88 2790.43 5.50 87.03

2 RRB 2 NA NA NA NA 3.72 NA 0.12

3 DCCB 17 164.73 (-

)2.92

163.93 (-)

0.48

190.67 16.31 5.94

4 PCARDBs 5 0.00 NA 0.00 NA 0.00 NA 0.00

5 PACS 114 147.88 1.74 152.50 3.12 167.71 9.97 5023

6 OFIs 3 9.43 1.72 53.25 464.69 53.89 1.20 1.68

Total 285 2644.72 11.22 3014.72 13.99 3206.42 6.36 100.00

* growth over previous year : NA – not applicable; OFI Other financial

institutions – PCB, TAICOB & Tic

Source : Potential Credit Plan, NABARD, 2008-09

109

While DCCB has recouped from the adverse trend witnessed

in the previous two years, growth rate of deposits of commercial banks,

PACSs and OFIs during 2007-08 was moderate.

TABLE 3.7

OUTSTANDING LOANS IN VARIOUS BANKS OF

KANYAKUMARI DISTRICT 2005-06 TO 2007-08

Loans outstanding

Sl.

No

Agen

cy

No

.of

Bra

nch

es

Loans outstanding % of

share as

on

31/03/08

2005-06 2006-07 2007-08

Amt. % * Amt. % * Amt. % *

1 CBs 144 1612.61 7.17 2009.10 24.58 2377.84 18.35 78.37

2 RRB 2 NA NA NA NA 25.81 NA 0.85

3 DCCB 17 257.65 7.56 233.12 (-)

9.52

283.65 21.68 9.34

4 PCARDBs 5 26.84 (-)

18.14

10.14 (-)

62.22

15.23 50.20 0.50

5 PACS 114 386.99 41.38 216.86 (-)

43.96

283.71 30.83 9.36

6 OFIs 3 29.72 10.85 47.57 60.06 47.90 0.69 1.58

Total 285 2313.81 11.37 2516.79 8.77 3034.14 20.56 100.00

* growth over previous year : NA – not applicable; OFI Other financial

Source : Potential Credit Plan, NABARD, 2008-09.

Role of Informal Credit Delivery System

NABARD has been playing a leading role in the micro

finance programme for the last one and half decades. It has been acting as a

catalyst for the banking system of the country to join hands with informal

delivery channels to give SHG-Bank linkage Programme the required

momentum. The Self Help Group – Bank Linkage Programme initiated by

110

NABARD in 1992 is perhaps the most successful community development

initiative ever tried in India. It has been acknowledged as the fastest

growing and the most cost effective micro Finance initiative in the World.

The pilot project which started in 1992 with a modest target of linking just

about 500 SHGs with a few banks across the country had reached over 40

million poor people by 31 March 2008. The banks have now recognized

SHG Bank linkage as a new dimension of quality lending and apart from

banks, other institutions like Post Offices are also associating themselves

with the movement.

SHG Bank Linkage Programme in Tamilnadu : Regular

savings, maintenance of books and accounts, internal lending are the major

factors in determining the credit absorption capacity of the groups. During

2007-08, 1,31,796 SHGs have been credit linked with a bank loan of Rs.

1302 crore in TamilNadu. As on 31 March 2008, in TamilNadu, the

cumulative number of SHGs credit linked stood at 473610 with an

aggregate bank loan of Rs.5118.73 crore.

The Overview of Micro finance Profile in the district is as

under:-

1.1 Total number of blocks in the district 9

1.2 No. of blocks where SHGs exist 9

1.3 No. of blocks where SHGs are credit linked 9

2.1 No. of NGOs in the district 130*

2.2 No. of NGOs participating in the linkage programme 92

2.3 No. of additional NGOs to be roped in during the

year

10 to 15

111

3.1 Total No. of bank branches in the district 163

3.2 Of which No. of branches participating in the linkage

programme

156+106

PACS

3.3 No, of additional branches proposed to be roped in

during the year

5

4.1 No. of Govt./Post Offices/other agencies

participating

7

4.2 No. of Govt./Post Offices / other agencies likely to

participate

1 (KVK)

5 No of poor households in districts NA

5.1 No. of SHGs in the district 34800+

5.2 Scope for formation of new SHGs 750

5.3 No of SHGs savings linked in the district 31524

5.4 No of SHGs credit linked 30066

5.5 No of SHGs taken up micro enterprise 8000

* There are more than 125 NGOs – approved by TNCDW – 29 NGOs;

Means for expansion of linkage programme

• Encouraging SHG formation in uncovered activities

• Encouraging new NGOs who are dedicated

• Concentrating attention on the tribal population in remote areas

• Promotion of SHGs through farmers clubs and formation of SHGs

of tenant farmers as absentee cultivation is quite common in the district.

SHG Bank Linkage Programme in the District

As per data collated from various source, the number of

SHGs as at the end of 31 March 2008 was about 34000 and about 49000

groups have been credit linked during 2007-08 with a credit disbursement

of Rs. 61 crore. Quite a good number of NGOs (about 130) are operating in

the district and facilitate formation of SHGs. These agencies are engaged in

awareness creation, health care training, adult education, skill training,

112

propagation of organic farming, vermin-culture etc. They organize people

into groups and work with them. These NGOs inculcate savings habit and

help the people to take loans from their own savings. Tamil Nadu

Corporation for Development of Women Ltd. (TNCDW) maintain data in

respect of NGOs reconginised by them. Of the 12838 groups, 12447 are

credit linked. TNCDW has enrolled 29 NGOs and for all purposes

including subsidy extension, only TNCDW are only considered.

Commercial banks and KDCCB are actively involved in supporting the

credit initiatives with programmes reviews of TNCDW at monthly

intervals. Most of the SHGs are activity based. Apart from NABARD,

District Rural Development Agency (DRDA), TNCDW and the extension

office of handicraft department provide various training and assist them in

marketing their products. Pillow lace embroidery, hand embroidery, zeri

embroidery, coconut shell products, seashell products, palm leaf products,

tailoring, ready made garments etc. are some of the major activities in

which the SHG members are involved. Vermi-compost, apiculture, masala

powder, agro processing and fish processing are some of the innovative

activities practiced in Kanayakumari by the SHG members. At present

NGOs like SEDA, CHARDEP, KODI, SSWC, KSSS, PWDS, MALAR,

RWDS,MIDS,YMCA,Nala Oli, CARD, Vivekananda Kendra, Resource

Centre, PASA, CSD, IED, Stella Maris Social Centre, Seva Bharati, Good

Vision, Mary Quiry, Gill Call and a few others have engaged themselves in

113

SHG formation. Multifold increase in number of NGOs and SHGs have

been observed after Tsunami. The field level feedback indicates that dual

membership is prevalent in certain areas.

SHG Linkage Programmes Strategy

• Orientation of newly posted/transferred officers of banks is

desirable for continuing the success of the programme.

• Quality training is desirable for staff of NGO especially in

facilitating micro enterprise initiatives to sustain the movement in

the long run.

• Rating of SHGs are done jointly by the TNCDW and Bank branches

for the groups affiliated to the TNCDW.

Projection for the year 2009-10

No. of SHGs to be

promoted

No. of SHGs to be

savings linked

No. of SHGs to be

credit linked

750 500 1400

D. mFI Bank linkage: There are no micro finance institution operating in

the district.

CREDIT FOR AGRICULTURE AND ALLIED SECTOR IN

KANYAKUMARI DISTRICT

Investment Credit for Agriculture

Minor irrigation

Kanyakumari District is endowed with plentiful surface

water. Apart from the surface water the ground water development forms

114

the major part of the minor irrigation programme and includes construction

of dug wells, dug-cum-bore wells, filter points etc. With a view to

increasing the ground level disbursement for minor irrigation, NABARD

has made certain relaxation in the refinance policy for long term

investment credit to minor irrigation sector. The quantum of refinance for

minor irrigation has been raised to a minimum of 95% of the bank loan

with effect from 10 October 2002.

Agency wise details of bank credit through NABARD,

disbursed under minor irrigation sector from 2003-04 to 2006-07 is given

in Table 3.8.

TABLE 3.8

BANK CREDIT DISBURSED UNDER MINOR IRRIGATION

SECTOR IN KANYAKUMARI DISTRICT

(Rs in lakhs)

Sl.

No. Agency 2003-04 2004-05 2005-06

2006-07

Target

1 Commercial Banks 94.89 301.14 641.45 2177.6

2 KDCCB 0.44 1924.53 2834.24 0.00

3 PCARDBs 0.88 0.00 0.00 2.92

4 Others 36.00 0.00 0.00 0.00

Total 132.21 2225.67 3475.00 2180.52

Source : Potential Linked credit plan, NABARD, Tamil Nadu 2007-2008.

It may be observed from Table 1 that loan disbursement

reported under minor irrigation during the year 2005-06 was very high and

115

the disbursement by DCCB during 2004-05 and 2005-06 is also very high

which may be due to incorrect coding of activities in the (LBR) returns.

The banks in the district have been informed to indicate correct code

numbers so as to avoid such lapses in future. Involvement by PCARDB

and other banks is nil. This was due to poor response by other financial

institutions and non availability of future for PCARDBs.

Land Development

Land development sectors encompasses all activities related

to improving productivity of land such as land leveling and off-farm

development works for preparing the land for higher irrigation efficiency.

Soil conservation, contour bunding, reclamation of saline and alkaline soil,

soil improvement, water management and improved rainfed farming

practices are other activities taken up under this sector. Out of the net sown

area of 78829 ha.as on 31.03.2006, 51978 ha., constituting 65.94% is under

rainfed cultivation. The district has plantation to an extent of 30,000 ha.in

hilly areas which are prone to soil erosion. Soil conservation is, therefore,

an essential and important investment activity in the district.

The agency wise details of bank credit through NABARD

disbursed under Land Development sector from 2003-04 to 2006-07 is

given in Table 3.9.

116

TABLE 3.9

BANK CREDIT DISBURSED UNDER LAND DEVELOPMENT

SECTOR (RS IN LAKHS)

Sl.

No. Agency 2003-04 2004-05 2005-06 2006-07


2 KDCCB 0.00 1774.11 1846.10 400.00

3 PCARDBs 10.63 2.18 0.00 0.00

4 Others 0.00 0.00 0.00 0.00

Total 1304.88 2480.10 2257.16 4606.21


Table 3.9 reveals that the flow of credit to this sector is

fluctuating. The ground level credit during 2004-05 and 2005-06 by the

Co-operative Bank was very high. Agricultural credit plan (ACP) target for

2006-07 is much more than the potential linked plan projection. Under

potential linked plan, only available potential has been considered for

projection. Considering the importance of sector in agricultural

development, financing under the sector is expected to be more in coming

years.

Farm Mechanisation

Agricultural Mechanisation helps in increasing production,

productivity and profitability in agriculture by achieving timeliness in farm

operations, bringing precision in metering and placement of inputs,

reducing available input losses, increasing utilisation efficiency of costly

117

inputs )seed, chemical, fertilizer, irrigation, water etc), enhancing

profitability and competitiveness in the cost of operation. It also helps in

the conservation of the produce and by – product from qualitative and

quantitative damages; enables value addition and establishment of agro-

processing enterprises for additional income and employment generation

from farm produce. It is one of the important inputs to usher in all – round

development in rural area.

Agency wise detail of bank credit disbursed through

NABARD under farm mechanisation sector for the years from 2003-04 to

2006-07 is shown in Table 3.10.

TABLE 3.10

BANK CREDIT DISBURSED UNDER FARM MECHANISATION

SECTOR IN KANYAKUMARI DISTRICT (RS IN LAKHS)

Sl.

No. Agency 2003-04 2004-05 2005-06 2006-07

1 Commercial

Banks

27.94 145.56 299.62 5232.28

2 KDCCB 0.00 0.00 0.15 0.00

3 PCARDBs 6.00 0.00 0.00 113.9

4 Others 0.00 0.00 0.00 0.00

Total 33.94 145.56 299.77 5345.37


Table 3.10 reveals that except commercial banks, no other

agency has extended credit to farm mechanisation during 2003-04 and

2004-05 and a meagre disbursement was done by District Central Co-

118

operative bank (DCCB) during 2005-06. Agricultural credit plan (ACP)

target for 2006-07 is much more than the potential linked plan (PLP)

projection. Under PLP only available potential has been considered for

projection.

Investment Credit for Allied activities

Dairy Development

Dairy development is one of the major allied activities in

Kanyakumai District. About 3.37 lakh (97%) of operational holdings are of

less than one hectare and without fully depending upon agriculture alone

the farmers have to take up allied activities like dairy farming to

supplement their income and sustain their livelihood. Moreover unlike

other districts in the state, the district of Kanyakumari has deficit in milk

production. Hence, dairy development is important.

In this district, as the 2004 live stock population, the number

of available cattle were 101712 (exotic / crores bred 96067 and indigenous

5645) and buffaloes numbering 6077 Milch animals were 44204.

The agency wise details of bank credit disbursed under dairy

development for the years 2003-04 to 2006-07 are given in Table 3.11.

119

TABLE 3.11

BANK CREDIT DISBURSED UNDER DAIRY DEVELOPMENT

SECTOR IN KANYAKUMARI DISTRICT (RS. LAKHS)

Sl.

No. Agency 2003-04 2004-05 2005-06 2006-07


2 KDCCB 3.82 4.20 0.00 1923.80

3 PCARDBs 68.91 0.22 0.00 123.13

4 Others 47.10 76.43 0.00 0.00

Total 206.49 350.52 2136.83 5359.43


Table 3.11 reveals that the ground level disbursement by the

KDCCB and PCARDB for the year 2005-06 is nil. This may be because of

showing it under Swarnajayanthi Gram Swarozgar Yojana (SGSY).

Further, the interest evinced by banks is not adequate as large potential

under dairy development remains untapped. Target fixed for 2006-07 is

exorbitantly high.

Poultry Development

The climate in Kanyakumari District is not congenial for

poultry development because of high rainfall and high humidity. Though

there is good demand for poultry meat and eggs, there are constraints for

expanding this activity in the district. Poultry development may be taken

up in a small way. Commercial poultry farming is picking up in the district,

after the bird flu scare. However, as said before, the off take of this activity

120

is not to the expected level. Agricultural Credit Plan achievement under the

sector for 2005-06 was only 14%. Larger share of loan disbursed were for

contract farming.

The agency wise details of bank credit disbursed under

poultry farming for the years 2003-04 to 2006-07 (Target) are given in

Table 3.12.

TABLE 3.12

BANK CREDIT DISBURSED UNDER POULTRY FARMING

SECTOR (RS. LAKHS)

Sl.

No. Agency 2003-04 2004-05 2005-06 2006-07

1 Commercial

Banks

27.33 153.98 32.92 3494.71

2 KDCCB 0.00 0.00 8.01 1420.10

3 PCARDBs 4.92 0.00 0.00 28.71

4 Others 0.00 0.00 0.00 0.00

Total 32.25 153.98 40.93 4943.00

Source: Potential Linked credit plan, NABARD, Tamil Nadu 2007-2008.

Table 3.12 reveals that the disbursements under poultry by

commercial bank is fluctuating and KDCCB’s involvement is poor.

PCARDB has not disbursed during 2005-06.

Investment Credit for Non Farm Sector Activities

Investment Credit

Agriculture is the predominant activity in the district. The

district falls under high rainfall zone and the availability of lands for non-

121

agricultural purposes is limited, which hampers the industrial development

in the district. Investment credit in the district was given to the following

broad group of activities like rural artisans/ craftsman decentralised sector,

tiny industries, cottage and village industries, ancillary units, handlooms

and powerlooms, agro-industries and Small Scale Industries (SSIs).

However, handlooms, powerlooms and rural artisans have less scope

compared to others1.

NABARD supports certain activities which are income

generating and provide sustainable employment opportunities to people

living in rural areas. Important activities are initiatives of NABARD, Rural

tourism, Trainers Training programme, skill upgradation and design

Development for Handloom weavers (SUDHA), Rural Mart and Rural

Innovation Network.

The agency wise ground level credit for non-farm sector,

including working capital and Investment credit for the years 2003-04 to

2006-07 in the given Table 3.13.

14. Potential Linked Credit plan, NABARD, Tamil Nadu, 2007-08, p.78.

122

TABLE 3.13

BANK CREDIT DISBURSED UNDER NON FARM SECTOR

(Rs in Lakhs)

Sl.

No. Agency 2003-04 2004-05 2005-06 2006-07


2 KDCCB 46.78 1173.48 59.46 1352.40

3 PCARDBs 250.24 93.69 0.00 744.52

4 Others 485.05 618.03 812.51 869.85

Total 3795.90 6304.21 3294.70 7076.05


Table 3.13 shows that the ground level credit has been

increasing over the reference period except in the year 2005-06. Keeping

this in view and the potential available under non farm sectors (NFSs), the

projection under the sector has also been increased.

F. Self Help Groups (SHGs) Linkage Programme

NABARD offers faculty support, organises exposure and

awareness programmes for the participating bank managers, field staff and

senior officers of the banks. During 2006-07 NABARD had sanctioned

SHG Basic Orientation Training to three NGOs viz., HOPE, Mary Quiry

and Snekham involving 60 SHGs. Further with the increased involvement

of co-operatives and intensified focus of commercial banks in SHG linkage

programme, NABARD and TamilNadu Corporation for Development of

Women (TNCDW) are addressing the issue of capacity building of the

123

bank officials and Primary Agriculture Co-operative Bank (PACB)

Secretaries. With the introduction of the branch level grading exercises for

all government sponsored programmes and for SHG direct linkage, branch

managers are fully involved in the exercise. Operational difficulties are

clarified on the spot. This has created a sea change in the outlook of branch

managers.

Details of training programmes conducted during 2003-04 to

2006-07 are given in Table 3.14.

TABLE 3.14

TRAINING PROGRAMMES CONDUCTED

FROM 2003-04 TO 2006-07

Year

Com

mer

cial

Ban

k O

ffic

ers

Co-o

per

ati

ve

Ban

k O

ffic

ers

Tra

inin

g t

o S

HG

Mem

ber

s

Ref

resh

er

train

ing t

o S

HG

Mem

ber

s

NG

Os

Ba

nk

ers

mee

t

Ex

po

sure

vis

its

to S

HG

s b

y

BL

BC

Part

ner

s

Gover

nm

ent

Off

icia

ls (

blo

ck

level

)

Sk

ill

Devel

op

men

t to

SH

G M

emb

ers

2003-2004 2 4 25 2 4

2004-2005 1 2 30 4 1 2

2005-2006 5 2 4 4 2

2006-2007 1 2 4 5

Source: Potential Linked Credit plan, NABARD, Tamil Nadu, 2007-2008.

This profile helps to understand the different geographical

and economic facts of Kanyakumari District.

chapter iii profile of the study area...

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