Agricultural Credit - 3628 Words

An Assessment of Agriculture Credit at PNB Introduction Agriculture plays a crucial role in the development of the Indian economy. It accounts for about 15.7 per cent of GDP and 52.1 per cent of the total workforce of the population is dependent on the sector, and despite a steady decline of its share in the GDP, is still the largest economic sector and a significant piece of the overall socio-economic development of India. The importance of farm credit as a critical input to agriculture is reinforced by the unique role of Indian agriculture in the macroeconomic framework and its role in poverty alleviation. Recognising the importance of agriculture sector in India’s development, the Government and the Reserve Bank of India (RBI) have†¦show more content†¦Indirect finance denotes to finance provided by banks to farmers indirectly, i.e., through other agencies. Important items included under indirect finance to agriculture are as under : (i) Credit for financing the distribution of fertilisers, pesticides, seeds, etc. (ii) Loans upto Rs. 25 lakhs granted for financing distribution of inputs for the allied activities such as, cattle feed, poultry feed, etc. (iii) Loans to Electricity Boards for reimbursing the expenditure already incurred by them for providing low tension connection from step-down point to individual farmers for energising their wells. (iv) Loans to State Electricity Boards for Systems Improvement Scheme under Special Project Agriculture (SI-SPA). (v) Deposits held by the banks in Rural Infrastructure Development Fund (RIDF) maintained with NABARD. (vi) Subscription to bonds issued by Rural Electrification Corporation (REC) exclusively for financing pump-set energisation programme in rural and semi-urban areas and also for financing System Improvement Programme (SI-SPA). (vii) Subscriptions to bonds issued by NABARD with the objective of financing agriculture/allied activities. (viii)Finance extended to dealers in drip irrigation/sprinkler irrigation system/agricultural machinery, subject to the following conditions: (a) The dealer should be located in the rural/semi-urban areas. (b) He should be dealing exclusively in such items or if dealing inShow MoreRelatedGovernment Of Indi The Four Distributional Aspects Of Agricultural Credit Essay1487 Words   |  6 Pagesinstitutional credit. It is true that there have been some improvements in flow of farm credit in recent years. However, the Government has to be sensitive to the four distributional aspects of agricultural credit. These are: (a) not much improvement in the share of small and marginal farmers . (b) decline in credit-deposit (CD) ratios of rural and semi-urban branches. (c) increase in the share of indirect credit in total agricultural credit and. (d) significant regional inequalities in credit. (PoliciesRead MoreThe Demand Side Issues Of Agricultural Credit Essay1283 Words   |  6 Pages Sriram (2007) has stressed that the policy intervention in agriculture has been credit driven only, which becomes more pronounced in the recent interventions made by the government through the policy of doubling of agricultural credit, providing subvention and putting an upper cap on interest-rates for agricultural loans, revival of co-operative credit structure through the package recommendation by the Vaidyanathan Committee and policy responses to farmers suicides butRead MoreAgricultural Machinery Market : A Case Study Essay1590 Words   |  7 Pages Agricultural Machinery Market A Case Study Department of mechanical Assistant Professor and Industrial Engineering Department of mechanical and Industrial Indian Institute of Engineering Technology Roorkee Indian institute Of Technology Roorkee Table of Contents I. 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