Rural Credit Case Study

1023 Words3 Pages
bulb-icon

Recommended: 5 importance of agricultural credit

Raveesh (2011) has attempted to analyze the relationship between bank credit and economic growth in North-East region consisting of seven states and observed that banks has provided significant amount of money but there has not much impact on the economic growth causing the region towards further backwardness.
. Rao (2008) in his study on rural credit has discussed some of the lively issues of rural credit in India, that are; the increasing substitution of capital for labour in agriculture due to diversion of cheap credit for bigger farmers by commercial banks, significant slowing down in the share of the short-term loans in relation to the share of fertilizers in the eastern and western states despite …show more content…

He found that, while the state has experienced a steady growth in the supply of formal sector credit over the 1980s, the level of disbursement has remained lower as compared to the all India level and also low in relation to the demand for rural credit in the state. In the 1990s, there was a sharp decline in the volume of credit disbursement by commercial banks in the rural West Bengal; however, village level survey showed a substantial increase in the disbursement through cooperative society during the same period and emergence of agricultural traders as a main source of credit for operational expenses of cultivation. The author has revealed that the process of land reform and with the distribution of land and the registration of bargadarsa, has made a large number of cultivators formally credit-worthy and eligible for cultivation loans; and the involvement of panchayats in the process of formal lending has made substantial progress in the recovery of loans …show more content…

6235 in Kerala, Rs. 5,502 in Tamil Nadu, Rs. 3,806 in Punjab and Rs. 3428 in Andhra Pradesh while it was as low as Rs. 873 in Uttar Pradesh, Rs. 432 in West Bengal and only Rs. 155 in Bihar in 1999-2000 respectively; wide variation in the number, proportion and per farmer loan of indebted farmers across the states and union territories in India have been found as states with high level of agricultural development and with commercial farming were reporting high level of indebtedness among the

Show More
Related

  • Analysis Of Stuffed And Starved

    2185 Words  | 5 Pages

    Our nation was founded on agriculture, and for hundreds of years we were able to migrate across the nation bringing our farming tools and techniques with us. Technology has driven populations away from rural areas towards industrialized cities. With money now being pumped into cities, rural farmers are suffering the most. Farmers are taking out large loans in order to sustain their farms, leading to debt and in some cases suicide. Patel spoke about a farmer in India whose husband took his life because he was unable to live with the amount of debt from his struggling farm. This man left his wife and chi...

    Read More

  • Analysis Of Behind The Beautiful Forevers

    1748 Words  | 4 Pages

    This is necessary as the vast majority of individuals migrating from rural to urban centers has been steadily increasing with the level of economic growth seen within the past twenty years as mentioned earlier. Unfortunately, this situation has further shown the structural issues and inequalities of cities, as most migrants end up having a poor quality of life living in informal settlements as highlight substantially by Boo. As a means of tackling this, however, the Indian government has turned its focus on investing rural regions, developing the agricultural sector. Specifically, Boo mentions that “the prime minister, Manmohan Singh, had come down from Delhi to express his concern for the farmers’ hardships, and the central government’s determination to relieve it” (p. 138). While this is definitely important funds are not being divided justly. For starters, between rural and urban areas almost all investments are being targeting towards rural regions, which is only addressing issues of inequality in one section of the country. Furthermore, across rural areas inequalities of investment are quite often overlooked. Although, “one of the governments hopes was to stop villagers from abandoning their farms and further inundating cities like Mumbai, but Asha’s relatives knew nothing of these celebrated relief programs” (p. 138). Therefore, even though

    Read More

  • Stalin's Assault on Agriculture in 1930

    1244 Words  | 3 Pages

    The language of violent class warfare would permeate all rural policy. The scale of collectivisation was staggering, 120 million people living in 600,000 villages were directly effected. 25 million individual holdings were consolidated into 240,000 state-controlled collective farms in a matter of months. I shall now examine each of the factors that influenced this assault in turn. An instigator to collectivisation was the grain procurement crisis of 1927-8.

    Read More

  • A Comparison of Economic Growth and Development: Pakistan and Similar Countries

    2910 Words  | 6 Pages

    The objective of this paper is to make an economic development and economic growth comparison of these four countries. The comparison will be multi-faceted. It will compare monetary perform...

    Read More

  • Thailand's Rice Mortgage Scheme

    763 Words  | 2 Pages

    The Bank for Agriculture and Agricultural Cooperatives (BAAC) has stated the disadvantages of the Rice Mortgage Scheme. The deficit of the government’s finance ...

    Read More

  • Recession Essay

    3090 Words  | 7 Pages

    The Banking industry in most economies has traditionally been more synchronized than other industries. If there is downfall in other industries there is not much effect on the economy of the country but if downfall of the banks can lead to worse effect on the nationwide economy which results in the disordered payment system. It is not a goal of the a particular research work to find new theories for a particular system rather the elements of existing theories are included and used in new context. To address the research objective there is a method in which qualitative and quantitative approach is required. The Banking industry in most economies has been developed than any other industry Earlier the banks used to be crowded but now the banks as an alternative of attending customers’ everyday consult with them and ask them to pay more attention to central banking like project financing, advances, loan recovery etc.

    Read More

  • The Importance Of Banking Supervision

    722 Words  | 2 Pages

    The study is primarily designed to find out the continuous issue of the banking system in

    Read More

  • Agricultural Intensification And Land Change

    845 Words  | 2 Pages

    Generally, technological change in agriculture can be categorized as labor-intensive and capital-intensive system or it can be yield-increasing with affecting labour or capital intensity. Therefore, the impact of technological change in these directions become more complex and would have positive or negative impact depending on how much the agent is constrained in respective resources, to what extent market is imperfect to balance resource constraints, and what other institutional factors influences the movement of resource from intensive and extensive agricultural margins (Angelsen & Kaimowitz, 2001). Market or policies that increase output price or reduce input cost also found to have a contrary or minor impact in reducing crop land expansion. On one hand, profitability of agriculture could encourage farmer to use improved input and increase yield or it could create incentive to clear forest for additional production. Thus, the outcome depends on the availability of labour and land. Technological improvements and productivity gains potentially also make the agricultural activity more profitable and thus more attractive, resulting in an increase in total agricultural land rather than a reduction (Lambin & Meyfroidt, 2011) contrary to most of the theoretical assumptions. An increase in input price could have both effects on one hand, reduce the profitability of agriculture and hence, the area allocated to farming. On the other hand, farmers could replace fertilizer with other input, land, through expansion. Besides, access to credit or lower interest rate for capital also found to have resulted in expansion of land through relaxing farmers’ capital constraints. However, creation of off-farm income could not be a guarantee since increased income can be allocated to acquire extra land, which in the case of rural

    Read More

  • Role Of Financial Sector In The Banking Sector

    1366 Words  | 3 Pages

    Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.

    Read More

  • Rural Education

    3620 Words  | 8 Pages

    Where a child grows up and which high school they attend greatly affects further education and employment. Higher education, including college and vocational schooling, factors into employment opportunity. Research has shown that schools in rural areas have far less resources for students interested in attending college, providing less opportunity for students pursuing higher education. Wilsonville High School, located the city of Wilsonville just south of Portland, Oregon, represents a typical urban high school in an upper-middleclass city. In contrast, Cottage Grove High School, located in the small rural town of Cottage Grove, southwest of Eugene, Oregon supports a much lower income community. Both schools differ greatly in regard to variables such as average income, test scores, availability of advanced and technical classes, architectural and technological resources, minority education, local junior college participation, and funding. The cities of Wilsonville and Cottage Grove also differ greatly in the lifestyles most citizens enjoy: Wilsonville supports a highly technological community, home to corporate offices of Xerox, Nike, Mentor Graphics, and Hollywood Entertainment, while Cottage Grove’s largest employers include Weyerhaeuser Company (the Northwest’s largest lumber supplier) and other lumber corporations, as well as industrial manufacturers such as Wright Machine Corporation. The two high schools present a tradeoff between providing educational opportunities for students in lower income, rural communities and the actual demand for higher education in an industrial and agricultural community.

    Read More

  • Essay On Rural And Rural India

    1088 Words  | 3 Pages

    It is generally said that the rural areas house up to 70% of India’s population. Rural India contributes a large chunk to India’s GDP by way of agriculture, self-employment, services, construction etc. As per a strict measure used by the National Sample Survey in its 63rd round, called monthly per capita expenditure, rural expenditure accounts for 55% of total national monthly expenditure. The rural population currently accounts for one-third of the total Indian FMCG sales.

    Read More

  • Essay On Effect Of Corruption

    1239 Words  | 3 Pages

    “India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis”(Ahluwalia 2002).The idea being simple ,there was a need to ...

    Read More

  • Rising Food Prices

    1504 Words  | 4 Pages

    ...earch and extension, rural infrastructure, and market access for small farmers. Rural investments have been sorely neglected in recent decades, and now is the time to reverse this trend. Farmers in many developing countries are operating in an environment of inadequate infrastructure like roads, electricity, and communications; poor soils; lack of storage and processing capacity; and little or no access to agricultural technologies that could increase their profits and improve their livelihoods. Recent unrest over food prices in a number of countries may tempt policymakers to put the interests of urban consumers over those of rural people, including farmers, but this approach would be shortsighted and counterproductive. Given the scale of investment needed, aid donors should also expand development assistance to agriculture, rural services, and science and technology.

    Read More

  • Essay On Banking Sector

    707 Words  | 2 Pages

    It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)

    Read More

More about Rural Credit Case Study

Open Document