Opinions

Flow of Credit to Agriculture

Employment News

  • 12 July, 2014
  • Nilachala Acharya

Financial inclusion is necessary for growth to be inclusive. Increasing the amount of credit flow to the agriculture sector, particularly provisioning of credit to small and marginal farmers is one of the important ways for making the country's economic growth more inclusive. In this context, the article attempts to trace the amount of institutional credit flow to small holders in agriculture. The article concludes that in an agrarian economy like ours, where small and marginal farmers constitute almost 85 percent of the total farming community, direct finance would be more beneficial over indirect finance and accordingly the policies need to be revisited to cater to the needs of the marginalised farmers.

Flow of Credit to Agriculture