agri credit in india

8/3/2019 Agri Credit in India

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Agricultural credit in India

Presented by

Sangeeta kumari (9015)Student of

Food and Agri Business School


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OUTLINE Objective.

Indian Agriculture.

Indias position in world agriculture.

Agricultural resources.

Milestone in agriculture development.

Evolution of Institutional credit to agriculture. Banking infrastructure.

Initiative for financial inclusion.

Share of borrowing from different sources.


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Average GDP growth rate of agriculture

and other sector. Targets and actual disbursement to

agriculture by banks.

Conclusion.


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OBJECTIVE

1. To study the Impact of Agricultural crediton agriculture production.

2. To study the progress of agriculturalcredit in India.

3. To study the Impact of Agricultural credit

on growth and poverty in India.


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Agriculture Sector is changing thesocio-economic environments of thepopulation due to liberalization andglobalization

About 75% people are living in rural areas andare still dependent on Agriculture. About 43%of Indias geographical area is used for

agricultural activity

Agriculture continues to play a major role in

Indian Economy

Indian Agriculture


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Indian Agriculture Provides about 65% of the livelihood

Accounts for 27% of GDP

Contributes 21% of Total Exports, and SuppliesRaw materials to Industries

Growth Rate in production - 5.7%

Food grains production

211.17

mt


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Indias position in world AgricultureRank

Total Area Seventh Irrigated Area First Population Second Economically Active population Second

Total Cereals Third Wheat Second Rice Second Coarse grains Fourth Total Pulses First Oil Seeds Second Fruits and Vegetables Second Implements (Tractors) Third Milk First Live Stock (castles, Buffaloes) First


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Agricultural Resources Total Geographical Area (TGA) - 329 M.H

Potential for Biological Production - 265 M.H

Net Sown Area (NSA) - 143 M.H

Net Irrigated Area - 56 M.H

Area threatened by land degradation - 50% of T GA

Drought-prone Area - 190 M.H


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Mile Stones in Agricultural

Development

Green Revolution (1968)

Ever-Green Revolution (1996)

Blue Revolution (water, fish) White Revolution (Milk)

Yellow Revolution (flower, edible)

Bio-Technology Revolution ICT Revolution


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Agriculture credit


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Evolution of Institutional Credit to Agriculture

1904 - Cooperative Societies Act

1935 - Setting up of RBI

1954 - Rural Credit Survey Committee

1955 - State Bank fo India created for rural penetration

1969 - 19 Commercial Bank Nationalised, All India Rural

Credit Review Committee

1970 - Lead Bank Scheme - States/Districts

1975 - Regional Rural Bank - Hybrid banks

1981 - 6 more Commercial Banks nationalised

1982 - Setting up of NABARD 1992 - SHG - Bank Linkage Programme

2001 - Kisan Credit Card/Swarojgar Credit Card/Gramin

Tatkal Card

2006 - Committee on Financial Inclusion Set up


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BANKING INFRASTRUCTURE

PACs

1,05,000

DCCBs

(367)

SCBs

(30)

ST Coop

PCARDBs

768

SCARDBs

(20)

LT Coop

14,501 Branches

(rural)

RRBs

(135)

NABARD

33411 Branchessemi-urban and rural

Commercial Banks

105

RBI


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Initiative for Financial InclusionA. SHG - Bank Linkage Programme - 2.2 million SHGs with loans

outstanding of Rs.11397.50 million (average size of SHG - 15members and 90% women SHGs)

B. MFI - Bank Linkage

C. Women Entrepreneurs Development Programmes (MicroEnterprises) with NGO assistance

i. Credit - marketing related

ii. Rural Entreprenurship programme with the help of Banks andNGOs (25% women)

iii. Area Development Programmes in clusters - skills upgradation

and capacity building

D. Farmers Clubs 18,000 with the help of banks for technologicaltransfer, banking promotion schemes

E. Joint Liability Groups of Farmers (850 JLGs with Rs. 124 millionfinance) (4-10 farmers)


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Initiative for Financial InclusionF. quick credit to farmers 59.1 million cards

G. Swarojgar Credit Cards - for unorganised poor people -both rural and urban

H. Gramin Tatkal Card - project for loans upto Rs.50,000

without collateral for families credit needs. (pilotschemes launched)

I. Business correspondent and faciliators (January 2006 -to enhance rural outreach

J. SGSY Scheme for poverty alleviation (restructuringvarious credit programmes like IRDP, TRYSEM ,DWACRA etc.) Cluster Development Programme (forCredit intensification) with shared infrastructure,markets, services, common opportunities and threats(101 already started)


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Share of borrowing from different sources

Source credit 1951 1961 1971 1981 1991 2002Non-institutional 92.7 81.3 68.3 36.8 30.6 38.9

Money lenders 69.7 49.2 36.1 16.1 17.5 26.7institutional 7.3 18.7 31.7 63.2 66.3 61.1Co-operative

societies/banks3.3 2.6 22.0 29.8 23.6 30.2

Commercial

banks0.9 0.6 2.4 28.8 35.2 26.3

unspecified - - - - 3.1 -total 100.0 100.0 100.0 100.0 100.0 100.0


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Average GDP growth rates of agriculture and other sectors at 1999-2000prices (percent)

period TotalEconomy

Agriculture& allied

Crops &livestock

Non-agriculture

Pre-GreenRevolution

1951-52 to1967-68

3.7 2.5 2.7 4.9

GreenRevolution

period

1968-69 to1980-81

3.5 2.4 2.7 4.4

Widertechnology

disseminationperiod

1981-82-1990-91

5.4 3.5 3.7 6.4

Early ReformPeriod

1991-92 to1996-97

5.7 3.7 3.7 6.6

Ninth andTenth

1997-98 to2006-07

6.6 2.5 2.5 7.9

Plan 2005-06 to2006-07

9.5 4.8 5.0 10.7


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Targets and actual disbursement to agriculture by banks

(Rs.crore)

Agency

(2004-05) (2005-06) (2006-07) (2007-08)*

TargetDisbursement

TargetDisbursement

TargetDisbursement

TargetDisbursement

Comm.

Banks57,000 81,481 87,200 1,25,477 1,19,000 16,64,486 1,50,000 1,56,85

Coop.Banks

39,000 31,231 38,600 39,786 41,000 42,480 52,000 43,68

RRBs 8,500 12,404 15,200 15,223 15,000 20,435 23,000 24,81

OtherAgencie

s193

Total 1,05,000 1,25,309 1,41,000 1,80,486 1,75,000 2,29,401 2,25,000 2,25,34


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CONCLUSION Over the years there has been a significant

increase in the access of rural cultivators toinstitutional credit and the role of informalagencies, including moneylenders, as a source

of credit has declined. Agriculture credit amount has a positive and

statistically significant impact on agricultureoutput.

Though there are several gaps in the presentinstitutional credit delivery system, agriculturecredit is still playing a critical role in

supporting agriculture production in India.


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agri credit in india

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