- CCS HAU, Hisar, Agricultural Economics, Department Memberadd
The study examined the role of lending institutions in the development of Indian agriculture. Data for the study was obtained from secondary sources obtained from published articles, annual reports of RBI, NABARD, publications of Central... more
The study examined the role of lending institutions in the development of Indian agriculture. Data for the study was obtained from secondary sources obtained from published articles, annual reports of RBI, NABARD, publications of Central Government Offices etc. The data were analyzed using descriptive statistics such as percentages, frequencies and compound annual growth rate (CAGR). The results reveal that in the early years particularly during the pre-green revolution era, agricultural credit was dominated by non-institutional sources, mainly moneylenders who are known to extort the farmers by charging exorbitant interest rates. However, the turn of the post liberalization era witnessed a paradigm shift with the institutionalization of agricultural credit in India. This has led to a remarkable success in terms of agricultural credit provision with the institutional sources of credit performing a leading role in agricultural credit delivery to farming households. Recently, institutional credit sector has performed astonishingly by surpassing its annual targets with few exceptions from 2011-12 to 2018-19. Furthermore, the results indicate that the commercial banking sector has controlled its counterparts in agricultural credit disbursement in rural areas as pictured by both CAGR and achieved credit targets of the institutions.