agri credit in india
TRANSCRIPT
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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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