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Agricultural Credit Policy in India - Need for Shift from Supply-Led To Demand-Driven Credit
Authors(1) :-Dr. Amrit Patel
In pursuance to the recommendations of the All India Rural Credit Review Committee  the Government of India directed the nationalized banks including the State Bank Group & later on private sector commercial banks to finance farmers in order to significantly increase food output in particular and substantially raise agricultural growth rate in general. Government, also, adopted a multi-agency approach involving vast rural network of cooperative credit institution and regional rural banks. From time to time the Government introduced a plethora of directives virtually regulating the banks beyond one can expect. In the process, approach to agricultural credit policy in India and many developing countries since the 1960s has been â€œsupply-led rather than demand-drivenâ€ which of course facilitated farmers to usher in Green Revolution. However, over a period of time this approach resulted into large-scale over dues building huge amount of non-performing assets, making banks financially unviable and forcing the Government to recapitalize them, among others. In this context, this development perspective article attempts to briefly highlight pertinent aspects of supply-led approach and suggests the immediate need to search & reinvent the agricultural credit delivery approach emphasizing demand-driven
RFI, Green Revolution, NABARD, RIDF, ANBC, NABARD, HTM, RBI, SHG-BLP, BRI-UD, BAAC
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Published in : Volume 2 | Issue 6
| November-December 2016
Date of Publication : 2016-12-31
License: This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 01-13
Manuscript Number : IJSRST16261
Publisher : Technoscience Academy
PRINT ISSN : 2395-6011
ONLINE ISSN : 2395-602X
Cite This Article :
Dr. Amrit Patel, "Agricultural Credit Policy in India - Need for Shift from Supply-Led To Demand-Driven Credit ", International Journal of Scientific Research in Science and Technology(IJSRST), Print ISSN : 2395-6011, Online ISSN : 2395-602X, Volume 2, Issue 6
, pp.01-13, November-December-2016.
Journal URL : http://ijsrst.com/IJSRST16261