Volume : V, Issue : II, February - 2015

Role of Institutional Credit To Agriculture Sector

Reetu, Dr. Shobha Choudhary

Abstract :

After the Independence, money–lenders were the major source of finance to the farmers. They provide loan not only at high rate of interest but other malpractices also adopted by them. Rural indebtedness is noted as a major reason for the increase in farmer suicides during recent times across a number of states like Punjab, Maharashtra etc. According to a well known saying the Indian peasant is born in debt, lives in debt & dies in debt. After the green revolution, agriculture activities have become cash–based & farmers require high investment in modern inputs. Due to increased liberalization & globalization the cropping pattern has become changed from staple cropes to cash crop like–oilseeds & cotton which enhanced credit need. While the price of the cropes has been declined thus farmers have no means to supplement their income. This paper is based on the secondary data collected from Govt. of India, Economic Survey 2009–10 & 2012–13. This paper aims to examine the flow of institutional credit to agriculture & allied activities & the role of agriculture sector in GDP. It is found that after independence 75% population were engaged in the agriculture sector. But now the agriculture sector is providing employment to 54% people only. Population is shifting towards industry & service sector. The contribution of agriculture sector in GDP in 1950–51 was 55.40% while 14.1% in 2012–13. So, credit is important input for agriculture development.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

DR.SHOBHA CHOUDHARY,REETU Role of Institutional Credit To Agriculture Sector Indian Journal of Applied Research, Vol.5, Issue : 2 February 2015

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