THe Blog

April 08, 2015

Bulk of Farm Credit in Maharashtra not Directed towards Farmers

This TOI article states that:


"although the majority of farmers live in rural areas, a larger portion of agricultural loans are supplied by urban and metropolitan branches of scheduled commercial banks. Urban and metropolitan branches of these banks accounted for nearly 44% of agricultural credit, the study said. By contrast, rural branches supplied almost 30%. The study by economists R Ramakumar and Pallavi Chavan is based on data from the RBI report 'Basic Statistical Returns of Scheduled Commercial Banks in India for 2013 which states that the proportion of farm loans to farmers is very low in Maharashtra."


The growth in agricultural credit has also been fuelled by a rise in indirect loans, the study says. Direct loans are given to farmers while indirect loans are given to institutions indirectly involved in agricultural production. Significantly, the share of credit to small and marginal farmers has dropped dramatically across the country, the study shows. Instead, loans of Rs 1 crore and above are driving the revival of agricultural credit, the study says".

x Close Window

Please verify your email address to access this content