Availability and Demand for Agricultural Credit Among Tribes
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Date
2015
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Abstract
Agriculture plays a crucial rol&.in the devchpment c f the Indian econon-iy. It accounts fu: about 19 per'cent :of^ -
GDP and about two thirds o f the population is dependent on the sector: The importance o f farm credit as a criiicai input
to agriculture is reinforced by the unique role of Indian agriculture in the macroeconomic framework and its role in i
poverty alleviation. Recognizing the importance of agriculture sector in India's development, the Government and the,:
Reserve Bank o f India (RBI): have played a vital role, in creating a broad-based institutional framework for catering tol.
the increasing credit requirements o f the.sector. The adoption of multi-agency approach for the provision o f credit to the,
rural areas with a larger role o f the commercial banks so, that the.desired level o f progress in agriculturaTproduction,'
could be achieved (Agarwal et al„ 1997).
The share of commercial banlcs increased from 51:94 percent in 1998- 1999 to 71.64 per cent in 2008-2009,.: but the,
share o f cooperative banlts declined from. 38, 67 per cent- to)17.91 per cent in the same period, whereas the Regional?-
Rural Banlcs were the marginaiplayers with 7 - 91per cenl.market share in agricultural credit (Hand-Book c f Indian-
Economy, 2011). . . V
Growth in. agricultural credit and number o f accounts, which was on a declining trend during 1990-2000 had; picked'up:
in early 2000s and continued till 2006-07, but was again showing a declining trend in the recent years. During- the
period o f high growth in agricultural credit, the share of indirect credit was on an increase but had remained stagnant: iii
- .nibsequent years. Moreover, the share o f small and marginal farmers in total credit, which was about. 27 per centyaclR. \
stayed unchanged at that level betyveen 2004-05 'qnd 2006-07, even as:agricultural credit, growth was otr a-riseflTliis -;
clearly meant that the benefits of doubling of agriculturafcredit to small.and marginal farmers have been relatiyel0essf,
In this backdrop, an attempt was made to assess the availability o f credit and: demand for agricultural crediticirnong ?.
tribes.
The finding of the study shows that per acre demand for crop loan v;as higher for marginal farmers. It was amounted to-*-
42121 per acre followed by small and medium farmers. It showed that as the size o f land holding increased, the per acre.?
demand for crop loan had declined. The demand for investment loan had decreased along with size o f land holding
among borrowers. On an average, all borrowers demanded investment loan 9668.33 per acre. The per acre availability.
o f crop loan had decreased along with the size of land holding among borrowers. Marginal farmers alone received an.
amount of investment loan 24393.94 per acre. It was the highest amount compared to small and medium farmers