AGRICULTURAL CREDIT IN INDIA (original) (raw)
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A study on institutional credit to agriculture sector in India
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The institutional credit has been conceived to play an important role in the agricultural development of India. A large number of institutional agencies are involved in the disbursement of credit to agriculture. However, the persistence of money lenders in the rural credit market is still a major concern. In this backdrop, the present study has assess the quantum of loans issued and outstanding by institutional agencies and to examine the progress of Scheduled Commercial Banks in supplying agricultural credit in India. The relevant information was gathered through secondary data and compound growth rate were used for the analysis of data. The study reveals that the highest increase in loans issued was in the case of Scheduled Commercial Banks while the lowest was in the case of Co-operatives on the other hand the total number of account holders in scheduled commercial banks has increased from 5,841 to 30,538, whereas the amount of finance increased from 14,516 to 2,71,670 in the ref...
ZENITH International Journal of Business Economics & Management Research, 2018
Agriculture sector plays a vital position in India"s economy. It accounts for about 19 per cent of GDP of the country. A large proportion of the population in India is rural agricultural and allied sector based and exclusively depends upon the agriculture for their livelihood creation. Development agriculture sector is crucial for the development of all other sectors including industrial sector in the country as they are interrelated. Agricultural credit is considered as one of the most basic input for conducting all agricultural development programmes. Identifying the importance of agriculture sector in India"s development, the Government and the Reserve Bank of India (RBI) have played a vital role in creating a broad-based institutional framework for catering to the increasing credit requirements of the sector. Banking sector plays a major role as the commercial banks are the major source of institutional credit for agriculture sector in India. In this paper, an attempt is made to assess the current observable trends in institutional credit to agriculture specially focusing the role of commercial banks in India.The study reveals that commercial banks in India maintain the predominant role in financing agriculture in the country.
A Study on Trends and Impact of Agricultural Credit in India
Advances in Life Sciences, 2016
Credit is one of the critical inputs for agricultural development. It capitalizes farmers to undertake new investments and/or adopt new technologies. Realizing the importance of agricultural credit in fostering agricultural growth and development, a study has been conducted to analyse the trends and impact of agricultural credit in India. The study was conducted based on secondary data collected from various sources such as government websites, annul reports of NABARD, Indiastat etc. The data were analysed using various techniques such as compound annual growth rate, standard deviation, instability index, analysis of variance and simple regression analysis. The study revealed that in the production credit (short term credit), highest compound annual growth rate was showed for commercial banks (25.66%) and in the case of medium term or long term loans for agriculture, regional rural banks showed a higher rate of growth with 17.74 per cent. The commercial banks are the major providers of agricultural credit at the ground level with a contribution 71 per cent. The ANOVA (single factor) results revealed that there is significant difference between the mean values of loans issued and loans outstanding among cooperative banks, commercial banks and regional rural banks. The simple linear regression analysis also depicted that agricultural credit has significant contribution in the agricultural GDP of the country and also on the agricultural exports from India.
Institutional Credit to Agriculture Sector in India: Status, Performance and Determinants
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The institutional credit has been conceived to play a pivotal role in the agricultural development of India. A large number of institutional agencies are involved in the disbursement of credit to agriculture. However, the persistence of money lenders in the rural credit market is still a major concern. In this backdrop, the present study has examined the performance of agricultural credit flow and has identified the determinants of increased use of institutional credit at the farm household level in India. The study based on the secondary data compiled from several sources, has revealed that the institutional credit to agriculture in real terms has increased tremendously during the past four decades. The structure of credit outlets has witnessed a significant change and commercial banks have emerged as the major source of institutional credit in recent years. But, the declining share of investment credit in the total credit may constrain the sustainable agricultural growth. The quan...
Agricultural Credit in India: An Overview
This paper presents an overview of the agrarian credit scenario in India. Drawing from past studies and previous research, this paper provides a detailed analysis of the various issues pertinent to the functioning of agrarian credit markets. These include the glaring chasm between demand and supply of agrarian credit, the emergence of sectors within the Indian economy which compete with agriculture for institutional credit and the aversion of institutional lenders towards agrarian borrowers. The paper also attempts an analysis of deficiencies plaguing the three distinct phases of a credit cycle-resource mobilisation, lending and recovery.
Agriculture Credit in India: An Analytical Study
This paper examines the concerns and issues in agricultural credit in India. The analysis states that the credit delivery to the agriculture sector continues to be insufficient. It appears that the banking system is still hesitant on various grounds to provide credit to small and marginal farmers. Transformation in banking policies and practices and the resultant of and access to total bank credit during the post-bank nationalization period have not satisfactorily addressed equitable and efficient delivery of agriculture and rural credit. Due to declining in public capital formation in the rural and agriculture sector and the persistent unenthusiastic attitude of rural bankers towards formal financing, the planners and policymakers are believe on microfinance to suitably supplement formal banking in rural India.
TRENDS PREVAILING IN THE AGRICULTURE CREDIT SYSTEM IN TAMILNADU
Journal of Management & Entrepreneurship, 2022
Agriculture being the largest sector of the Indian economy plays an important role in accelerating the pace of economic growth and development. Agriculture development implies increased production and productivity of crops, generation of employment opportunities and thereby improved standard of living of the peasants. Moreover, the agricultural sector accelerates the overall economic development. Institutional credit plays a major role in the development of the agricultural sector. So without adequate finance for the farmers, there is no economic development. Agriculture credit is considered as one of the most basic components for conducting all agricultural development programs. In India, there is an immense need for proper agricultural credit as the economic condition of Indian farmers are very poor. In this respect the financial institutions plays a fabulous role by providing agricultural credit for accelerating the agricultural growth. Therefore, this paper mainly focuses on the trends that is prevailing in agriculture credit system in Tamil Nadu.
Current issues in agriculture credit in India: An assessment
Reserve Bank of India Occasional Papers, 2007
This paper attempts to analyse the issues in agricultural credit in India. The analysis reveals that the credit delivery to the agriculture sector continues to be inadequate. It appears that the banking system is still hesitant on various grounds to purvey credit to small and marginal farmers. The situation calls for concerted efforts to augment the flow of credit to agriculture, alongside exploring new innovations in product design and methods of delivery, through better use of technology and related processes. Facilitating credit through processors, input dealers, NGOs, etc., that are vertically integrated with the farmers, including through contract farming, for providing them critical inputs or processing their produce, could increase the credit flow to agriculture significantly.