The terms and conditions indicated below are for area based crop development schemes.

1.      The financing bank may consult the State Department of Horticulture or the concerned   Commodity Board while selecting the scheme area to ensure technical feasibility of the crop investment.

2.      While selecting villages/areas for financing orchards and small plantations, the bank shall ensure compactness of the area to facilitate supervision.

3.      Loans under the scheme shall be given to those beneficiaries who have assured source of irrigation. Necessary term loan assistance may be provided to create such facilities wherever feasible.

4.      Under “Dryland Horticulture Development” the banks may ensure that necessary soil and water conservation measures are undertaken before taking up crop development.

5.      The bank shall satisfy itself that planting, material of required quantity and quality, procured by the beneficiaries are from reliable sources such as nurseries of Agricultural Universities or State Government or any other recognised private nursery.

6.      Loan shall be issued in respect of investments for raising plants during the first year and also for subsequent maintenance, till the plant attains economic bearing stage, or as indicated in the unit cost. However, where loans are proposed to be availed of only for the first year planting, it should be ensured that the beneficiaries have their own resources to meet subsequent expenditure.

7.      Wherever feasible, beneficiaries may be advised to use tissue culture plantlets.

8.      Bank shall ensure that the beneficiaries observe the following technical norms:

a.      The pits dug will be of standard size specified for the crop selected.

b.      The pits dug will be filled with top soil and well decomposed farmyard manure and soil disinfectants if necessary.

c.      Planting of approved high yielding varieties to suit the situations should be insisted upon.

d.      The young plants should be staked immediately after planting and shade/cover/hutting etc., provided wherever necessary and irrigated.

e.      Suitable training system should be adopted in the case of crops like grapes.

f.       Adequate fencing arrangement should be made as per local practices, preferably with live material to guard against cattle and trespassers.

g.      Pot watering of young plants may be done during the dry months of initial 2-3 seasons under rain fed/dry land condition and for the purpose, if necessary, pitcher irrigation may be considered.

h.      When the crop development is proposed under irrigated conditions, modern water saving irrigation systems like drip, sprinkler, etc., may be recommended with necessary financial assistance.

i.        Suitable inter crops may be taken up during the gestation period of the main crop wherever feasible.

j.        Mixed cropping shall be encouraged wherever possible as in the case of coffee, arecanut, coconut etc.

k.      The recommended fertilizer and plant protection schedule shall be followed strictly. The components like fertilizers, chemicals, weedicides etc., shall be disbursed only in kind or on the basis of actuals.

l.        Integrated Pest Management may be emphasised with special thrust on biological control methods, especially under multi-tier/mixed cropping systems.

m.    Adequate shade may be developed for crops like coffee/tea/cardamom etc., and the required minimum number of shade trees will have to be retained per unit area. Quick growing shade trees like Erythrena (Dadap), Silver Oak, Mesopsis etc., may also be planted wherever necessary.

n.      Necessary soil and water conservation and land development measures shall be ensured in plantation areas.

o.      For civil engineering works installation of processing equipment’s shall be carried out according to approved plans and designs, along with plantation crop development, as per the approved phasing.

9        Necessary technical guidance / supervision may be provided by the technical staff of the financing bank. If this is not possible, the bank shall satisfy itself that necessary extension services are provided by concerned Development Department of the State Government / Commodity Board etc.

10    The financing bank may make necessary arrangements for marketing of the produce to ensure a remunerative price for the beneficiary. A suitable tie-up arrangement can be tried with the marketing agency concerned for recovering the loan installments with the concurrence of the beneficiary.

11    The bank may grant loans to the individual beneficiary based on the case to case appraisal and assessment of the repayment capacity of the borrower.

12    The credit linked Crop Development Programme can be dovetailed with the ongoing State/Central Government Programmes, wherever feasible, so that the incentives can be availed off.