Deteminants of Borrowing Behaviour of Farmers
| dc.category | Journal Article | |
| dc.contributor.author | Gandhimathi, S | |
| dc.date.accessioned | 2017-04-04T23:18:54Z | |
| dc.date.available | 2017-04-04T23:18:54Z | |
| dc.date.issued | 2012 | |
| dc.department | Economics | en_US |
| dc.description.abstract | Agriculture contributed 19 percent o f gross domestic product in India. Agricultural credit is the major input in agriculttire (Economic Survey, 2009). There is a strong relationship between agricultural credit and agricultural production. Many o f the studies had established this relationship (Feder et al, 1990, Foldz,2004). The Reserve Bank o f India fixed a target lending o f 18 percent net bank credit to the agricultural sector (Report on trend and progress o f banking, 2009). The Approach Paper to the Eleventh Five Year Plan has set a target o f 4 per cent fo r the agriculture sector within the overall GDP growth target o f 9 per cent. In this context, the need for affordable, sufficient and timely supply o f institutional credit to agriculture has assumed critical importance. In India a multi-agency approach comprising co-operative banks, scheduled commercial banks and RRBs has been followed for purveying credit to agricultural sector. The policy o f agricultural credit is guided mainly by the considerations o f ensuring adequate and timely availability o f credit at reasonable rates through the expansion o f institutional framework, its outreach and scale as also by way o f directed lending. The demand for agricultural credit arises due to ij lack o f simultaneity between the realisation o f income and act o f expenditure; ii) lumpiness o f investment in fixed capital formation; and Hi) stochastic surges in capital needs and saving that accompany technological innovations. Credit, as one o f the critical non-land inputs, has two-dimensions from the viewpoint o f its contribution to the augmentation o f agricultural growth viz., availability o f credit (the quantum) and the distribution o f credit. In backdrop, an attempt was made to identify the determinants o f borrowing behaviour o f farmers. To conclude, the per borrower crop loan was higher fo r the medium farmers and lower fo r the marginal farmers. It was found that there was positive relationship between the amount o f loan and farm size except for the semi-medium and large farmers. The amount o f Per borrower investment loan was found to be highest fo r large farmers. The estimated borrowing function explained 67 percent o f the variations in the amount borrowed in terms o f the socio-economic characteristics o f the farmers. O f the variables taken into account, only the land size emerged as significant variable in explaining the variations in the borrowing behavior in the study area. | en_US |
| dc.identifier.uri | https://ir.avinuty.ac.in/handle/avu/2704 | |
| dc.lang | English | en_US |
| dc.publisher.name | Asian Journal of Research in Business Economics and Management | en_US |
| dc.publisher.type | International | en_US |
| dc.title | Deteminants of Borrowing Behaviour of Farmers | en_US |
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