Determinants of Agricultural Credit by Scheduled Commercial Banks - A Comparative Study in the Pre and Post Reform Period
No Thumbnail Available
Date
2010
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Agricultural credit is one of tltc most crucial inputs in the adoption of
technological innervations, modernization of agriculture, to improve productiinty and
for all agricultural development programmes. Scheduled commercial batiks were a
predominant source o f institutional credit to the farmers. The share ofSCBs in total
institutional credit to agriculture has increased from 50.03 per cent in 1998-99 to
77.89 per cent in 2008-09. The research study on "Determinants of Agriailhiral
Credit by Scheduled Commercial Banks-A Comparative Study in the Pre and Post
Reform Period" was formulated with the objectives of to compare the provision of
agricultural credit by SCBs between pre and post reform period and to identify the
determinants o f agriailtural credit provided by SCBs during the pre and post reform
period. The study zoas related to the period 1^80-81 to 2006-07 and the required
data xoere compiled from the secondary sources.
Compound growth rate,, t test and regression analysis were used fo r the analysis.
The study found that the direct agricultural credit provided by the scheduled
commercial banks at constant prices had shown an increasing trend with fluctuation.
In the post refyfni period the share df direct agricultural credil ut both curimi arid
Wasiihti^iaiiy signifwan f mditpid^iitfoe. rdafdm^fy with ike
advances. But iuthe post reformperiod, along with tlie amount o f deposits, the area
under high yielding varieties was also statistically significant. As such to increase •
the direct agricultural adi>ances, the commercial banks should be strictly regulated
to follow the percentage o f net bank credit towards direct agricultural advances.
Further, proper extension services-should be made to increase the area tinder high
yielding variety seeds.