Determinants of Agricultural Credit Constraint A Micro Level Analysis
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Date
2010
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Abstract
In India. < oinmcrcial l>Ai»k.s. ct>-o|>craliv«* and /CjraJ Lanks
wf/i* l)je condnii for providing agficidlurr (r^^lil- l lmugh ihr U>laJ
agrirnUnral rrcdii of institutional agt‘Mcirs liad inrre.tsci} fmm }{.s HHS) rrotr in 1‘J70-1971 to crorr in 2yO'L'200.S. Idl iIm: year iOO.LiOO'l, the
private' wtlor ami pul>Ii( MrClor (.onimcrcial banks dit/ tiol iudiieve the* larg<’t lending (18 percent net bank, cretilt) lo ibe agri«uUufal s<‘Ctor fixed fty the Uc^ervp Hank of Imiia. Arounrt 60 jMrrcent of tfic worhiny' ^■apila} of tlnr farnters WHM not nnancc<l by ibe firtancial inntilulion.H and remained a.i inxtiiulif)nal credit gap. /I'he above fact?< broogbt otit ifn* pre.sence rtf ui.slilutiunal cre<iil gap in the agricultural sector lending and substantiated fur <ii.se<piilil)ritim credit market condition in agriculture (National At count.s StalislicH, *2000).
The atuditrs in Intlia on the extent of credit cun.slrainl and the impart of agricultural credit «>n agriciitlural sector in a (fiseipiifibrimu tnarket condition are v«:ry ltinitc<l (Kochar. 1997). Hence the major objective of ibe present study is to analyse the extent of credit constraint and the factors fJeterrnining credit constraint.
'Id conclude, in the study area,.the area titnier cultivation (except in Karatnadal Mock) and farmers* own fum! to invest, turned out lo be the sig- nilicant factors lo detirnninc probability of credit constraint. The c.o-efficicnl of farmers* own fund had consistent negative sign. It revcalc<l that the probability of credit constraint had teclincd with in4.r«*;i.se in the amount of farmers* own fyrnl to inv»rst.