Home > Archives > IJSRST16261
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
- Anonymous (2010), “Report of the Task Force on Credit Related Issues of Farmers", Ministry of Agriculture, Government of India, New Delhi
- Anonymous , “Implementation of Agriculture Debt Waiver and Debt Relief Scheme, 2008", Ministry of Finance, Government of India, New Delhi
- Anonymous (2013-14), “Handbook of Statistics on the Indian Economy", Reserve Bank of India, Mumbai.
- Anonymous [2015-16], Annual Report, Department of Agriculture & Cooperation, Ministry of Finance, Government of India, New Delhi
- Anonymous [2015-16], Annual Report on Trends & Progress, Reserve Bank of India, Mumbai
- Anonymous [2015-16], Annual Report, National Bank for Agriculture & Rural Development, Mumbai
- B, Klien., et al  “Better Practices in Agriculture Lending." Agricultural Finance Revisited No.3, FAO.
- Chavan, P., and Ramakumar, R. (2007), “Revival of Agricultural Credit in the 2000s: An Explanation", Economic and Political Weekly, .Vol. XLII No.52
- Golait, R. (2007), “Current Issues in Agriculture Credit in India: An Assessment", Reserve Bank of India, Occasional Papers, Vol. 28, No. 1
- Kumar, A., et al (2010), “Institutional Credit to Agriculture Sector in India: Status, Performance and Determinants", Agricultural Economics Research Review, Vol-23, No.2 pp253-264.
- Sahu, G., and Rajasekhar, D. (2005), “Banking Sector Reform and Credit Flow to Indian Agriculture", Economic and Political Weekly, Vol-XL No.53.
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
URL : http://ijsrst.com/IJSRST16261