What Is Agriculture Finance In India

Agriculture finance in india professional moneylenders were the only source of credit to agriculture till 1935.

Eamcet model papers mpc. Agricultural finance is the provision of multiple types of services dedicated to supporting both on and off farm agricultural activities and businesses including input provision production and distribution wholesale processing and marketing. According to latest report agriculture is primary source of livelihood for 58 population in india. Direct finance for purchasing of pump sets tractors other agricultural machinery construction of wells tube wells and for other agricultural activities to farmers.

And other agencies engaged in procurement storage and distribution of food grains. Agricultural finance in india is not just one requirement of the agricultural business but a symptom of the distress prevailing among the majority of the farmers. Sources of agricultural credit in india.

Rural credit includes not only credit provided to farmers but also credit extended to artisans owners of small and medium industries in rural areas small transport operators and. As per 2018 agriculture employed more than 50 of the indian work force and contributed 1718 to countrys gdp. As a result farmers were heavily burdened with debts and many of them perpetuated debts.

Flow of presentation 3202018 agricultural finance 2 introduction meaning of agricultural finance classification of finance sources of agricultural finance agency wise credit flow to agriculture in india weaknesses in rural credit structure suggestions for improving rural credit system. India ranks second worldwide in farm outputs. Karan bhandari harsh sharma mbaab 1st year 2.

The short term and medium term loan requirements of indian farmers are mostly met by moneylenders co operative credit societies and government. In india agricultural credit are being advanced by different sources. They use to charge unduly high rates of interest and follow serious practices while giving loans and recovering from borrowers.

The history of agriculture in india dates back to indus valley civilization. The national bank for agriculture and rural development nabard is the apex institution at the national level for agriculture credit and provides assistance to the agenciesmentioned above. Agricultural finance is a sectoral concept which comprises financial services for agricultural production processing and marketing such as short medium and long term loans leasing and crop and livestock insurance.