Agricultural Credit in India – Innovations in Design and Delivery of Products and Services
The concept of bringing farmers together in a voluntary group was initiated in 1982 through the Farmers’ Club Programme. This institutional innovation has received a renewed focus from 2007–08 onwards. Nevertheless, access to farm credit sector has not been easy and adequate. In this paper, innovative approaches to improve agricultural credit flow have been captured from the secondary sources and analysed using compound annual growth rate and descriptive analytical tools. The share of private moneylenders has decreased with the institutional agencies making inroads into the rural scene. The structure of the sources of credit has witnessed a clear shift wherein the scheduled commercial banks and RRBs have emerged as the major sources of direct and indirect institutional credit to agriculture in recent years. The SHG-bank linkage programme, Kisan Credit Card, Farmers Clubs, Joint Liability Groups and Interest Subvention Scheme have been promoted to supplement rural credit delivery effectively and have also shown a significantly increasing growth rates over the years. In addition, there are a number of other small innovations that have taken place across the spectrum of agricultural credit markets. All these would eventually contribute to making sustainable access to agricultural finance leading towards a path for prosperity of farming community, especially the small and vulnerable farm households.
The Application of Garrett Scoring Techniques for Assessment of the Farmer Problems in Obtaining and Repayment of Agricultural Credit
According to a widely known expression voice communication, the Indian peasant is born in debt, lives in debt and dies in debt. The mass illiteracy of Indian folks generally and rural folks, particularly, combined the issues of agricultural credit with around seventy to eighty percentage of the farmers being illiteracy. This study throws lightweight on varied problems and challenges that are presently facing by the agricultural farmers in getting and reimbursement of agricultural credit and a few attainable resolution there from. This study additionally highlights the attainable development for the upliftment in agricultural production and development. Because of their unduly high rate of interest, farmers were heavily burdened with debts that cause the riots and even miserable suicides. Afterward, Government of India has tried those problems and got wind of rural credit approach through totally different institutional organizations. Still there exists lack of rapport between the bankers and therefore the farmers each in getting the crop loans further as in repaying the debt. The current investigation was completed with the elemental target of examining the result of institutional agricultural finance among the farmers. The precise objectives of this study were to investigate the extent of agricultural groom-to-be obtained by the farmers and its reimbursement. The information collected through personal interview were analyzed by the Garrett evaluation technique. The result indicated that the most important issues visage by the farmers in getting the institutional credit were the non-availability of loan in time, the procedure for getting the credit was costlier, inadequate quantity of loan sanctioned against the particular demand, the transport value and document expenses. The farmers listed out the issues they visage in repaying the credit were – failure, failure of monsoon, expectation of waiving of loans by the government, lower yield, and increase within the value of cultivation, decrease within the market price of the harvested manufacture. Accordingly, this examination presumed that the agricultural credit needs of farmers are expanding with the expansion in the cost of development. The Government should update its credit strategy, to meet out the credit needs of the farmers. ————————————————————
Agricultural Credit - Accomplishments and Challenges
Agricultureâ€™s share in GDP is less than 15 per cent but it still remains the direct domain of over half of the population whose economic prospects are linked to the performance of agriculture. There are many schemes taken by NABARD to improve the agricultural sector but there ahead which need to be tackled so that the sector will improve further more. [Speech delivered at the thirty years anniversary celebration of NABARD at Mumbai]. URL:[http://www.nabard.org/pdf/Governor's%20speech.pdf].