Determinants of Agricultural Credit Constraint—A Micro Level Analysis

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dc.categoryJournal Article
dc.contributor.authorGandhimathi, S
dc.date.accessioned2017-04-05T23:17:36Z
dc.date.available2017-04-05T23:17:36Z
dc.date.issued2010
dc.departmentEconomicsen_US
dc.description.abstractIn India, commercial banks, co-operative and Regional Rural banks were the main conduit for providing agriculture credit. Though the total agricultural credit of institutional agencies liad increased from Rs.885 crore in 1970-1971 to Rs.1,25,309 crore in 2004-2005, till the year 2003-2004, the private sector and public sector commercial banks did not achieve the target lending (18 percent net bank credit) to the agricultural sector fixed by the Reserve Bank of India. Around 60 percent of the working capital of tlie farmers was not financed by tlie financial institutions and remained as institutional credit gap. Tlie above facts brought out the presence of institutional credit gap in the agricultural .sector lending and substantiated for disequilibrium credit market condition in agriculture (National Accounts Statistics, 2006). The studies in India on the extent of credit constraint and the impact of agricultural credit on agricultural sector in a disequilibrium market condition are very limited (Kochar, 1997). Hence the major objective of the present study is to analyse the extent of credit constraint and the factors determining credit constraint. To conclude, in the study area, the area under cultivation (except in Karamadai block) and farmers’ own fund to invest, turned out to be the significant factors to determine probability of credit constraint. The co-efficient of farmers’ own fund had consistent negative sign. It revealed that the probability of credit constraint had declined with increase in the amount of farmers’ own fund to invest.en_US
dc.identifier.urihttps://ir.avinuty.ac.in/handle/avu/2769
dc.langEnglishen_US
dc.publisher.nameIndian Journal of Economicsen_US
dc.publisher.typeInternationalen_US
dc.titleDeterminants of Agricultural Credit Constraint—A Micro Level Analysisen_US
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