National Academy of Agricultural Sciences (NAAS)
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PRINT ISSN : 2319-7692 Online ISSN : 2319-7706 Issues : 12 per year Publisher : Excellent Publishers Email : editorijcmas@gmail.com / submit@ijcmas.com Editor-in-chief: Dr.M.Prakash Index Copernicus ICV 2018: 95.39 NAAS RATING 2020: 5.38 |
Agriculture remains the mainstay of Indian economy. The major contribution for the Indian agriculture is supported by the marginal and small farmers. Agriculture is most important for the sustainable development. Until 1935, the major sources of funds for the farmers were the professional money lenders. Due to their unduly high rate of interest, farmers were heavily burdened with debts, which lead to the riots and even miserable suicides. Later, Government of India has undertaken those issues and established agricultural credit policy through various institutional agencies. Still there exists lack of rapport between the bankers and the farmers both in obtaining the crop loans as well as in repaying. As a result, small and marginal farmers were trapped in vicious cycle of poverty, i.e., low savings → low investments → low returns. The present study was carried out with the main objective of studying the impact of institutional agricultural finance among the farmers. The specific objectives of this study were to analyse the extent of agricultural fiancé obtained by the farmers and its repayment. The data collected through personal interview were analysed by the Garett scoring technique. The result indicated that the major problems faced by the farmers in obtaining the institutional credit were the non-availability of loan in time, the procedure for obtaining the credit was more expensive, inadequate amount of loan sanctioned against the actual requirement, the transport cost and document expenses. The farmers listed out the problems they faced in repaying the credit were – crop failure, failure of monsoon, expectation of waiving of loans by the government, lower yield, and increase in the cost of cultivation, decrease in the market value of the harvested produce. Thus this study concluded that the agricultural credit needs of famers are increasing with the increase in cost of cultivation. The Government should update its credit policy, to meet out the credit needs of the farmers.
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