A

PROJECT REPORT ON
“A STUDY ON PUBLIC & PRIVATE FINANCIAL INSTUTION
IN FINANCING AGRICULTURE”

PROJECT SUBMITTED TO

University of Mumbai for Partial Completion of the Degree of

Bachelor In commerce (accounting and finance)
Under the faculty of commerce
Submitted by
MISS PRITI SHIVAJI GHOLAP
T.Y.B.A.F (SEMESTER-VI)
ROLLNO: 227817(A)
PRN NO: 2020016400861661
UNDER THE GUIDENCE OF
MR PANKAJ DANDGE
[M.COM, MBA (HRM), MA (B.ECO), B.ED, GDC&A, CA.IP.CC]

KARMVEER BHAURAO PATIL COLLAGE

VASHI NAVI MUMBAI

(AUTONOMUS COLLAGE)

ACADEMIC YEAR 2022-2023

1
 KARMAVEER BHAURAO PATIL COLLEGE, VASHI

CERTIFICATE

This is to certify that PRITI SHIVAJI GHOLAP Student Of

TYBAF (semester VI) has completed this project on “A STUDY ON PUBLIC
&PRIVATE FINANCIAL INSTUTION IN FINANCING AGRICULTURE
”and has submitted a satisfactory report under the guidance of ASST. PROF.
PANKAJ DANDGE in the Partial Fulfillment OF TYBAF (Semester -VI) Course
of University of Mumbai in the academic year 2022-2023.

ASST. PROF. PANKAJ DANDGE DR. VIVEK BHOIR DR. SHUBHADA NAYAK
PROJECT GUIDE CO-ORDINATOR PRINCIPAL

Date of Submission: UNIVERSITY EXAMINER

2
 DECLARATION

I undersigned PRITI SHIVAJI GHOLAP student OF

KARMAVEER BHAURAO PATIL, COLLEGE, VASHI
STUDYING IN TYBAF (Semester VI) hereby declare that the work
embodied in this project work titled “A STUDY ON PUBLIC &
PRIVATE FINANCIAL INSTUTION IN FINANCING
AGRICULTURE” forms my own contribution to the research work
carried out by me under the guidance of ASST. PROF. PANKAJ
DANDGE is a result of my own research work and has not been
previously submitted to any other University for any other Degree
/Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

PRITI SHIVAJI GHOLAP

Name & Signature of the learner

Certified by:
ASST. PROF. PANKAJ DANDGE
Name & Signature of the Guiding Teacher

3
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so

numerous, and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal DR. SHUBHADA NAYAK, for

providing the necessary facilities required for completion of this
project.

I take this opportunity to thank our Co-ordinator DR. VIVEK BHOIR

For his moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide ASST. PROF. PANKAJ DANDGE whose guidance and care
made the project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
parents and Peers who supported me throughout my project.

4
CHAPTER CONTENT PAGE NO.
NO
INTRODUCTION
1 1.1 DEFINATION 07 TO 28
1.2 NEED AND CLASSIFICATION OF
AGRICULTURAL FINANCE

1.3 SOURCES OF AGRICULTURAL FINANCE

1.4 HISTORY OF FINANCING AGRICULTURE IN

INDIA

1.5 MICRO- FINANCE AND AGRICULTURE

2
LITERATURE REVIEW 29 TO 44
3 RESEARCH METHODOLOGY
3.1 STATEMENT OF RESEARCH PROBLEM
3.2 DATA COLLECTION
3.3 DATA SOURCE
3.4 DATA REQUIRED 45 TO 52
3.5 OBJECTIVE OF THE STUDY
3.6 SIGNIFICANCE OF THE STUDY
3.7 SCOPE OF THE STUDY
3.8 LIMITATIONS OF STUDY
3.9 RESEAR DESIGN
4 DATA ANALYSIS INTERPRETATION AND
PRESENTATION 53 TO 63

5
FINDINGS, CONCLUSION AND
SUGGESTIONS
64 TO 67
5.1 FINDINGS
5.2 CONCLUSION
BIBILOGRAPHY 68TO 69

APPENDIX 70 TO 71

5
ABSRACT:
Indian economy is usually described as an agricultural economy .The agricultural contribution to
India’s national income has always been very large. At present nearly 15.4 % is the share of
agriculture and allied activities in our GDP and Bihar contributes about 20% to the Gross State
Domestic Product (GSDP). Agriculture thus has a very big share in India’s national income. At
present agricultural sector in India are facing many problems. Provision of adequate, timely and
cheap finance is an important aspect for the development of agriculture and related to agricultural
activities.

Agriculture is a productive occupation and one of its essential inputs is finance. This may be
provided by the cultivator himself or like other enterprises; he may borrow it from someone else
and repay it from the output of the field in which it has been invested. Agriculture finance is an
important area of rural finance dedicated to financing in agricultural related activities such as,
production, processing, distributing and marketing. These paper discuses the conceptual
background of agricultural finance, need of agricultural finance in India, sources of agricultural
finance and analysis of agricultural credit inflows.

6
 CHAPTER – 1
INTRODUCTION

7
INTRODUCTION

India's Agricultural Financial Institutions Were Created With The Intention Of Lending Money
To Farmers In Need And Giving Them Access To Resources That Would Boost Agricultural
Productivity. One Of The Most Crucial Elements In The Development Of Rural Areas In
Emerging Nations Is Agricultural Financing. Bank Credit Repayment Is One Method Of Funding.
Credit Is Essential For Removing The Financial Barriers That Farmers Have When Investing In
Farm Activities, Boosting Production, And Developing New Technologies. The Study Of The
Financial And Liquidity Services Credit Offers To Agricultural Borrowers Is Known As
Agricultural Finance.

1.1 DEFINATION:

Agriculture finance is the provision of various services, such as input financing, aimed at assisting
both on- and off-farm agricultural operations and businesses supplying, producing, and
distributing, as well as processing and marketing wholesale.

India's agricultural financial institutions were created with the intention of lending money to
struggling farmers and giving them access to resources that would boost agricultural productivity.
One of the most crucial elements in the development of rural areas in emerging nations is
agricultural financing. Bank credit repayment is one method of funding. Credit is essential for
removing the financial barriers that farmers have when investing in farm activities, boosting
production, and developing new technologies. The study of the financial and liquidity services
credit offers to agricultural borrowers is known as agricultural finance. It is also. Regarded as the
study of the financial intermediaries who lend money to agriculture and the financial markets
where those intermediaries receive the money they need to make loans the purchase, procurement,
and use of capital for the purpose of agricultural product production, processing, and marketing
is another definition of agricultural financing. Definition of Agricultural finance: Murray (1953)
defined agricultural finance as “an economic study of borrowing funds by farmers, the
organization and operation of farm lending agencies and of society’s interest in credit for
agriculture.” Tandon and Dhondyal (1962) defined agricultural finance “as a branch of
agricultural economics, which deals with and financial resources related to individual
farm units.”
8
 Agri-credit is a crucial mediating input for enhancing agricultural productivity.
By investing in machinery and buying variable inputs like fertiliser, high-quality seeds, and
manure, access to institutional credit enables farmers to increase productivity while providing
funds up until they receive payment from sales of their produce, which can occasionally be
delayed and staggered. Farmers' input usage is influenced by loan flows to the agricultural
industry. These are a few of the worries in reference to agri-credit.
(i) Predominance of informal sources of credit: Farmers continue to obtain up to 40% of their
funding from unofficial sources, with the nine local money lenders accounting for 26% of all
agricultural credit flows (highly exploitative lenders). DBT could be used to replace interest rate
subventions in cases of excessive interest rates. It is necessary to review and replace the
intermediation and refinancing model used to promote agricultural credit with a DBT that would
subsidise the interest paid by the farmer rather than refinance to financial institutions.

(ii) Between 1999–2000 and 2017–18, the proportion of agricultural loan to agricultural GDP
increased from 10% to almost 45%. However, from 55% in 2006–2007 to 33% in 2017–18, the
share of long-term lending (for more than 5 years) in agriculture or investment credit has
decreased. It is necessary to halt and reverse the drop in the share of long-term financing in
agriculture.

(iii) The distribution of agricultural finance is uneven among regions. The north-eastern and
eastern parts of the nation have very little coverage.

(iv) The Crop Short-term (less than 15 months) loans, which are designed to cover current
expenses until the crop is harvested, do not encourage substantial investments in agriculture.
A 7% annual interest rate is charged on farm loans up to Rs. 3 lakh (effective interest rate is
reduced to 4% with a 3% interest subvention).

The government has recently increased agricultural lending; the Union Budget 2020-21 set a
target of 15 lakh crores for 2020-21 (up from 13.5 lakh crores for 2019–20). However, there is a
significant regional disparity in the country's allocation of agricultural loans, particularly in the
North Eastern, Hilly, and Eastern States. In comparison to the Southern States, the North Eastern
States account for less than 1% of the overall agricultural loan disbursement.

9
1.2 NEED AND CLASSIFICATION OF AGRICULTURAL FINANCE:

The inputs needed to carry out the production of goods and services must be mobilized, and
financing is necessary to do so. This applies equally to the agricultural sector. Most farmers
are unable to update their farming techniques due to poverty. A simple and favourable process
for obtaining financing. Hence it's important to understand terminologies.

The environment has changed since becoming independent However, the conventional or
non-institutional sources still play a minor role in providing agricultural loans.

The majority of agricultural credit is currently provided by the National Bank for Agriculture
and Rural Development (NABARD), commercial banks, Regional Rural Banks (RRBs), and
cooperative banks through their various programmes.

One of the key elements in agricultural development is finance or capital.

NEED FOR FINANCE

One of the key elements in the development of agriculture is finance or capital.As was already
mentioned, farmers are unable to improve their crops due to poverty. The farmer's financial
stability affects the quantity and quality of the inputs used. A state of being in debt and a cycle
of poverty are the results of having little income and being unable to secure financing on fair
terms. For them to escape the poverty cycle that many farmers experience, they would need
access to sufficient financing from the appropriate sources at the appropriate time.

CLASSIFICATION OF AGRICULTURAL FINANCE

For consumption, farming, and other uses of short-term capital, respectively. The former
incorporates social and religious ceremonies as well as earning a living, especially during the off-
season. The second category consists of the purchase of seeds, fertilizer, fodder, and some basic
equipment.
Working capital loans, or those with terms of up to six months, are necessary to cover these costs.
These loans are often returned following the harvest and are necessary to provide for the operating
capital.

10
Medium -term: For the purpose of enhancing agriculture or income-generating operations,
medium-term financing is required for the purchase of cattle, equipment, or any other necessary
items. These loans range in length from 15 months to 5 years.

Long - term: Major changes need to be funded in order to be implemented. They include
purchasing extra land, adding to the capital stock with irrigation systems, investing in expensive,
long-lasting agricultural machinery, or paying off previous debts. Farmers must take out loans for
a duration of more than 5 years to achieve these requirements.

Effective and Ineffective: There are two types of agricultural credit: productive and
unproductive. The former is used to buy various types of inputs that increase productivity and
overall production. Although necessary, credit used for social celebrations like festivals,
weddings, and birth and death ceremonies is an unproductive expense that increases the debt loads
of farmers, who are already struggling to make ends meet. Although, under Even for such fruitless
objectives, credit must be granted, according to inclusive finance.

1.3 SOURCES OF AGRICULTURAL FINANCE:

Agricultural credit can be secured from various sources which can be broadly classified into (1)
Non-Institutional and (2) Institutional.

A. NON-INSTITUTIONAL CREDIT

Rural financing was mostly provided by non-institutional sources at the start of the planning
period. In 1951, non-institutional sources accounted for 92.7% of rural agricultural lending.
Money lenders had a significant role, contributing 69.7% of the credit. They continue to be
the main source of credit obtained outside of institutions. Family and friends had the second-
most significant role, followed by traders and landlords, who each provided only 3.3 percent
of the loans.

Presently, just 20% or so of total financing comes from non-institutional sources. However,
they account for up to 40% of the financing used by small and marginal farmers. The amount
of non-institutional credit has drastically dropped following the nationalisation of major
11
 commercial banks, the lead bank scheme, the founding of the National Bank of Agriculture
and Rural Development (NABARD), and further new and creative programmes.

á) Merit of Non-Institutional Credit

It is easy to obtain loan as the lenders and borrowers are known to each other.

i. Simple Procedures: are observed when making loans. It is frequently

only on or guaranteed. However, a written assurance should be acquired
when the sum is relatively significant.
ii. Easy access: Simple access and no set hours for contacting money lenders,
traders, or landlords during an emergency, a borrower might get a loan even
at midnight.
iii. No Restriction: is imposed on the use of the loan. It is granted for
productive as well as non-productive purposes.
Consumption loans: are also offered by lenders and other businesses. The money
needed for weddings, other social gatherings, and even funeral rites is readily available.
Loans from institutional sources cannot be obtained for these objectives.

b) DISADVANTAGE:
i. Excessive interest rates: It is impossible for the farmers to pay off the loans because of fees
paid by lenders and other parties.
ii. Indebtedness: The fundamental issue with rural credit is indebtedness. The weight keeps
growing, and in certain situations it results in a never-ending burden.
iii. Loss of land and property: Loss of land and property to the credit providers arises from
failure to repay the loan and interest. When small and marginal farmers are unable to pay back
the credit, they lose control of their land.
iv. Malpractices: are engaged in by exploiting blank bond or stamp papers to gain a person's
thumbprint or signature, depriving farmers of their assets and property.
v. Exploitation: of farmers is made simpler by requiring them to provide free services to
landlords and lenders. Right after the harvest, traders force people to sell the goods for less
money.
vi. Bonded labour: is the result of indebtedness of small and marginal farmers. In certain cases,

12
 it may even continue from generation to generation as they cannot redeem the debt due to
high interest and other malpractices resorted by the lenders
vii.
B. INSTITUTIONAL CREDIT
The proportion of institutional credit has significantly increased. Cooperative and commercial
banks have played significant roles in this sector's rural and agricultural finance.
Let's quickly go over the main institutional loan sources.

 Regional Rural Banks

To provide adequate banking and credit facilities for agricultural and other rural sectors,
Regional Rural Banks were created in accordance with the stipulations of an ordinance passed
on September 26, 1975, and the RRB Act of 1976.
Regional Rural Banks (RRBs) are scheduled commercial banks in India that are controlled by the
government and do regional business in several Indian states. The Ministry of Finance,
Government of India, is the owner of these banks. They were established in order to provide basic
banking and financial services to rural communities. RRBs do have urban branches though. On
October 2, 1975, five regional rural banks were established with a total authorized capital of Rs.
100 crores, which marked the beginning of the RRB development process. The Prathama Bank,
the first RRB, had a starting authorized capital of Rs. 5 crores on October 2, 1975. In the
Moradabad area of Uttar Pradesh, Syndicate Bank sponsored Prathama Bank, the country's first
regional rural bank.

Agriculture and other rural industries can use banking and credit facilities. Since roughly
70% of Indians lived in rural areas at the time of India Gandhi's government, it was a priority to
bring those areas into the economic mainstream
.

 NABARD (National Bank for Agriculture and Rural Development)

On the proposal of the B. Sivaraman Committee, the National Bank for Agriculture
and Rural Development was founded in 1982 for the overall regulation and licencing of
regional rural banks and apex cooperative banks in India. One of India's top regulatory
organisations is NABARD. It functions mainly as a development bank with permission to
grant credit and manage other facilities to India's agricultural sector. It falls within the
Ministry of Finance's purview.
13
 1) NABARD supports agricultural refinancing while fostering rural development
initiatives. Additionally, it offers small-scale industries all required financial support
and guidance
2) NABARD offers agriculture in collaboration with the State Governments.

3) By investing in their capital, NABARD supports a number of businesses engaged in

agricultural output.
4) Commercial and cooperative banks offer discounts on their bills so they can provide
financing for agricultural activities.

5) Objects of NABARD can be brought under three major heads:

 Credit function.
 Development function.
 Promotional function.
The bank gives money to State governments so they can carry out promotional and
development projects in rural areas. Particularly regional rural banks that are established in
underdeveloped regions of most States are refinanced by the bank in order to support rural
development and aid the weaker portions.
Since NABARD was established, both commercial and cooperative banks have
significantly increased the amount of agricultural credit they are distributing. Regional rural
banks now operate more effectively thanks to NABARD.

As a result, we discover that NABARD has not only taken over the responsibility of the
RBI in agricultural finance, but has also been doing it to the greatest extent possible to the
satisfaction of all parties involved. The country's storage facilities for agricultural commodities
have been significantly improved thanks in large part to NABARD. Agricultural exports, such as
those of fruits and vegetables, have also benefited from its promotion. It has contributed in other
ways to keeping the country's Green Revolution going.
The consistent work of NABARD has also contributed to the White Revolution, Blue
Revolution, and enhanced milk and fishery production. When it comes to producing dairy milk,
India leads the world.

14
COOPERATIVES:

The Cooperative Societies Act, which was passed in 1904, marked the beginning of Indian
cooperative banking. This Act's goal was to create cooperative credit institutions "to foster thrift,
self-help, and collaboration among farmers, artisans, and others of modest means." Under this
Act, numerous cooperative credit societies were established.
Cooperative credit institutions come in a variety of forms and operate in India. Agriculture
and non-agriculture are the two basic groups into which these institutions can be divided. The
majority of cooperative credit organizations are agricultural credit institutions.
Long-term agricultural credit institutions and short-term agricultural credit institutions are
further categories of agricultural credit institutions.

The federal government has a three-tiered framework for the short-term agricultural loan
organizations that serve the short-term financial needs of farmers.
(a) at the apex, there is the state cooperative bank in each state;
(b) at the district level, there are central cooperative banks;
(c) at the village level, there are primary agricultural credit societies.
Long-term agricultural credit is provided by the land development banks. The whole
structure of cooperative credit institutions is shown in the chart given.

SHORT-TERM RURAL COOPERATIVE CREDIT STRUCTURE:

There is a three-tier short-term rural cooperative system in rural India. State cooperative
banks (SCBs) are under Tier I, central cooperative banks (CCBs) fall under Tier II, and main
agricultural credit societies go under Tier III (PACSs).
A three-tiered short-term cooperative credit organization made up of SCBs, CCBs, and PACSs

15
operates in 19 states. Additionally, a two-tier short-term cooperative framework is present in 12
states. The only two-tiered structures seen in the northeastern states, including Sikkim, are SCBs
and PACSs.
A three-tiered short-term cooperative credit organization made up of SCBs, CCBs, and PACSs
operates in 19 states. Additionally, a two-tier short-term cooperative framework is present in 12
states. The two-tiered structure in the northeastern states of Sikkim included only SCBs and
PACSs.

PRIMARY AGRICULTURAL CREDIT SOCIETIES:

The primary agricultural credit society serves as the foundation for the three tiers of
cooperative credit. It is an institution at the village level that works directly with rural residents.
It promotes savings among farmers, accepts deposits from them, lends money to those in needs,
and then collects repayments.
It acts as the final connection between the primary borrowers—the rural population—and
the higher agencies, such as the Central Cooperative Bank, State Cooperative Bank, and Reserve
Bank of India. A hamlet may establish a primary agricultural credit society with 10 or more
members. Because of the low membership cost, even the most struggling farmer can join.

COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANKS

(CARDBS):

Agriculturists require long-term financing in addition to short-term finance for land

improvement projects, debt repayment, and the purchase of agricultural equipment and other
tools. Traditionally, financial institutions and other organizations tended to handle the long-term
needs of farmers. However, this credit source was revealed to be flawed and was the cause of the
exploitation of farmers.
Due to the fact that most of their deposits are demand (short-term) deposits, cooperative
banks and commercial banks are not by definition in a position to offer long-term loans. A
specialized institution to provide long-term finance to farmers was therefore greatly needed. A
step in this direction was the founding of land development banks, often known as cooperative
and rural development banks (CARDBs).

16
COMMERCIAL BANKS

The big agricultural industry in emerging nations receives assistance from commercial
banks in a variety of ways. To traders of agricultural commodities, they offer loans. To offer
agricultural finance, they establish a network of branches in rural areas.

Actually, the government's objective up until 1970 was to rely only on cooperative banks
as a significant source of institutional lending in rural areas. The government believed that the
cooperative bank could not satisfy the rising demand alone. As a result, government policy was
altered, and several organizations were created to provide credit to rural areas. 14 large banks
were nationalized in 1969.

Six further banks were nationalised in 1980. The total number of branches had risen to 67062
in 2004, with 32,200 of those located in rural areas. Despite the commercial banks' success in the
above described area of rural finance, their actions and performance have drawn a lot of criticism.

Prior to the nationalisation of 14 major commercial banks in 1969, co-operative banks were
the primary institutional entities financing agriculture. Following nationalisation, these banks
were required to fund agriculture as a priority industry

HISTORY OF FINANCING AGRICULTURE IN INDIA

Money lenders were the only source of credit to agriculture till 1935. They used to charge
unduly high rates of interest and follow serious practices while giving loans and recovering them.
As a result, farmers were heavily burdened with debts and many of them perpetuated debts. With
the passing of Reserve Bank of India Act 1934, District Central Co-op. Banks Act and Land
Development Banks Act, agricultural credit received impetus and there were improvements in
agricultural credit.
A powerful alternative agency came into being. Large-scale credit became available with
reasonable rates of interest at easy terms, both in terms of granting loans and recovery of them.
Although the co-operative banks started financing agriculture with their establishments in 1930’s
real impetus was received only after Independence when suitable legislation were passed and
policies were formulated. Thereafter, bank credit to agriculture made phenomenal progress by

17
opening branches in rural areas and attracting deposits.
Till 14 major commercial banks were nationalized in 1969, co-operative banks were the
main institutional agencies providing finance to agriculture. After nationalization, it was made
mandatory for these banks to provide finance to agriculture as a priority sector. These banks
undertook special programs of branch expansion and created a network of banking services
throughout the country and started financing agriculture on large scale. Thus agriculture credit
acquired multi-agency dimension.

Development and adoption of new technologies and availability of finance go hand in hand. A
large number of formal institutional agencies like Co-operatives, Regional Rural Banks (RRBs),
Scheduled Commercial Banks (SCBs), Non– Banking Financial Institutions (NBFIs), and Self-
help Groups (SHGs), etc. are involved in meeting the short- and long-term needs of the farmers.
Several initiatives have been taken to strengthen the institutional mechanism of rural credit
system.

In bringing "Green Revolution", "White Revolution" and "Yellow Revolution" finance

has played a crucial role. In the first half of 2000s, there has been a steep rise in the share of
commercial banks in total agricultural credit. Starting 1990s, the share of short-term agricultural
credit in total agricultural credit has been going up. Newer credit delivery systems in the form of
Kisan Credit Card (KCC) were introduced to provide easy access to credit.

MICRO-FINANCE AND AGRICULTURE

The micro finance sector has developed rapidly over the last two decades, making credit
available for many poor micro-entrepreneurs, although in most cases it has practically skipped
the rural poor and most particularly their agricultural activities as smallholders. Three-fourth of
the people lives in rural areas and for livelihood, directly or indirectly, largely depends up on
agriculture and allied activities. Between 60-99 percent of rural households earn a living from
farming and for most, it is rarely the only source of income. Most of these individuals also earn
wages either in the agricultural sector or other sectors, are self-employed, or receive money from
family members who migrate to cities. Family farming is characterized by low productivity due
in particular to low levels of investment in inputs or in equipment. But such investments require
access to financial sources in the form of short, medium or long- term loans.

18
 NGOs / MFIs debarred from future support from NABARD

NABARD has developed policy guidelines for debarring NGOs/MFIs from further assistance
who have been identified for failure to deliver the agreed outcome/ deliverables, misutilising the
grant assistance etc. Some of the important deficiencies and irregularities which may lead to
debarring of NGOs/ Agencies from NABARD support are as under:

Non adherence to terms and conditions, irregular submission of MIS, diversion of funds,changing
the location of the project/beneficiaries, default in loan repayments/interest payments, wrong
reporting, misutilisation/misappropriation/diversion of funds, failure to return the unspentbalance
of grant, misrepresentation of facts under Multi Agency Support not revealing funding
arrangement, non-cooperation with NABARD, concealing material information, cancellation of
license/registration etc.

Earlier the agencies which had defaulted in repayment of dues to NABARD and were not
cooperating had been blacklisted by NABARD as per the policy then in vogue. A list of the same
is hyperlinked.

Certain NGOs / MFIs which have been black listed by Rashtriya Mahila Kosh (RMK) and
Council for Advancement of People’s Action and Rural Technology (CAPART). The information
regarding the same can be obtained from their respective websites viz. www.rmk.nic.in and
www.capart.nic.in.

AGRICULTURE CREDIT IN DEVELOPING ECONOMICS

The overall goal of this study is to organize and make clearly understandable the studies on
agriculture credit by methodically grouping both published and unpublished studies. The
objective is to group the reviewed studies into appropriate categories based on the year, focus,
publication source, and country of study and then analyse them as necessary. By gathering a
number of interconnected features of agriculture credit in one location, this report can assist future
academics and policymakers. Studies on the factors influencing agricultural credit, credit market
rationing, repayment concerns, and a few other relevant topics have been examined. In particular,
this study might aid the country's policymakers, banks, and lending institutions in conducting a
fair assessment of the status and effectiveness of agricultural credit. 110 research on developing
19
economies that were released worldwide between 1995 and 2015 were examined.

The study makes recommendations for future directions in agricultural credit markets
research in these developing countries. The Working Group observed that without a suitable land
Landless labourers, sharecroppers, tenant farmers, and oral lessees have a tough time obtaining
institutional credit due to the leasing system and a lack of records. Additionally, they have no
motivation to invest in agricultural land, which results in low output, due to their fear of being
evicted. It advised the federal government to pressure the states to speed up the digitization and
updating of land records. The Model Land Leasing Act and the 2011 Andhra Pradesh Land
Licensed Cultivators' Act should be used as models for improvements in states with extremely
restrictive land leasing laws. In India, a sizable section of the populace lives in rural areas and is
reliant on agriculture for a living.

Increased and steady expansion of the agricultural sector is crucial since it not only
contributes to price stability and the creation of non-agricultural and off-farm employment
prospects, which in turn help to increase purchasing power among rural residents. Although
agriculture's contribution to real GDP in India has fallen below a fifth, it still represents a
significant industry because it employs 52% of the labour force.
India's ageing adult population is placing a significant and ongoing strain on its agricultural
output. But in recent years, there has been a decline in the per capita availability of food,
particularly cereals and pulses. significantly. Because of this, policymakers have been deeply
concerned about the agriculture sector's slowing growth during the past ten years.

To enhance agricultural finance, India has always maintained a supply-leading strategy.

Replacement of moneylenders, debt relief for farmers, and increased levels of agricultural
financing, investment, and productivity have been the goals. Among earlier research, Binswanger
and Khandker (1992) discovered that the impact of greater rural finance on output and
employment has been far less pronounced than in the nonfarm sector.

20
RECENT AGRICULTURE SECTOR REFORMS IN INDIA

Government's Initiatives

E-NAM
 Electronic National agricultural Market works as pan-India electronic trading portal
which has connected all the existing APMC mandis and provides a unified national
market for agricultural commodities.
 Small Farmers Agribusiness Consortium (SFAC) is the leading agency who implements
e-NAM under Ministry of Agriculture and Farmer’s Welfare, Government of India.
 This portal provides an uniformity in agriculture market, removes asymmetry between
buyers and sellers and promotes real time price discovery based on actual demand and
supply.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

 Vision of this scheme is “Har Khet ko Pani".

 This scheme enshrines its priority towards conservation and managements of water.
 This scheme is formulated with the vision of extending the coverage of irrigation
‘HarKhet ko Pani’ and improving water use efficiency ‘More crop per drop’

 It also provides end to end solution on source creation, distribution, management, field
application and extension activities.

PM-KISAN Maan Dhan Yojana

. It is a pension scheme for small and marginal farmers of the country. This scheme is
voluntary and contribution based for farmers at the entry of between 18-40 years of age. In this,
farmers will get Rs 3,000 as monthly pension after attaining the age of 60 years. This scheme is
launched to provide an income support after a certain age to give them financial freedom.

Pradhan Mantri Shram Yogi Maandhan is a voluntary and contributory Pension Scheme
for Unorganized Workers for entry age of 18 to 40 years with monthly income of Rs. 15000 or
less.

21
PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY)

It is a unique of its kind of an insurance scheme that integrates multiple stakeholders on a

single platform. It provides insurance coverage and financial support to the farmers in the event
of failure of any of the notified crop as a result of natural calamities, pests and diseases. It aims
to stabilize the income of farmers to ensure their continuance in farming. It encourages farmers
to adopt innovative and modern agricultural practices. A uniform premium of only 2% to be
paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial
and horticultural crops, the premium to be paid by farmers will be only 5%. The premium rates
to be paid by farmers are very low and balance premium will be paid by the Government to
provide full insured amount to the farmers against crop loss on account of natural calamities.

22
IMPORTANCE OF AGRICULTURAL FINANCE

Both the development of the agricultural sector and the growth of the economy as a
whole depend on credit. For the following reasons, agricultural financing is necessary:

I) India has limited potential for extensive agriculture. Consequently, intensification and
diversification of farming are the only ways to increase agricultural productivity. Large
capital is required for intensive agriculture.

ii) The distribution of operating holdings and operational area exhibits extreme inequities.
In 1980–81, just 2.4% of all farm households with more than 10 hectares each operated 23
percent of the entire operated land, compared to 74.5% of all farm households with less
than 2 hectares operating only 26.2% of the total operated area. In India, there were 163.797
million hectares under cultivation by 88.883 million agricultural households in 1980–81.
These small and marginal farmers can only buy things with their subsistence farming
income. So, in order to use the more expensive (modern) inputs, companies must rely on
outside financial help.

iii) The economic state of farmers is frequently threatened by flood, drought, famine, etc.
Hence, depending on the type and availability of financing, either the continuation of crop
cultivation or improving farms

iv) More land has been put under irrigation in recent years, which will lead to a rise in the
use of fertilizer and plant-protection chemicals. External funding was required to make this
happen.

v) The supply of the raw materials required for agro-based industries should be significantly
increased in order to support their further development. Hence, a steady supply of credit is
necessary for the development of the agricultural sector and would boost economic growth
in general.

vi) Fixed capital in agriculture is constrained by long-term investments like land, wells,

23
buildings, etc. In addition, it takes a while for farms to pay off. Hence, in order to maintain
their farming activities, farmers require financing.

vii) The less wealthy segments of the agricultural community should be encouraged to take
part in development programmers by providing financial aid to buy productive assets.

viii) Marginal and small farmers are caught in the poverty cycle of low returns, low saving,
low investment, and low returns. Credit needs to be introduced into the agriculture sector
in order to end this cycle.

Definition

Obtaining authority over the use of money now in exchange for the commitment to pay
it back later on is known as taking out a loan. The term "credit" can also refer to a
mechanism that enables the temporary transfer of purchasing power from those who have
an excess of it to others who have not. Credit therefore entails a brief transfer of wealth.
The amount of investment capital made available for agricultural production from sources
outside the agriculture sector is known as agricultural credit. Agriculture finance is regarded
as a distinct branch of study that deals with the borrowing and lending done by businesses
and farmers.
According to Hopkins et al., agricultural finance is the process of buying and controlling
assets, whether through outright cash purchases, borrowing, leasing, or custom hiring.
Agricultural finance was described by Warren Flee et al. as the economic analysis of the
procurement and application of capital in agriculture. It addresses the supply and demand
for capital in an economy's agriculture sector.

The amount of money collected from non-farm sources for use on the farm and repayable
in the future with an interest rate agreed to either expressly or tacitly is referred to as farm
finance.

24
 Farm Finance
I is intended to increase the productivity of farm resources rather than only increase
production;
ii. Not just a loan or advance, but a tool to increase the farming community's prosperity;
iii. Is an applied science of resource allocation that goes beyond just managing money to
produce
The best results; and
iv. It is a lever with connections to economic development on both a micro and macro
level, not just a simple social obligation on society.
Farm finance can be characterized as the study of the effects of financing (provided to
farmers by intermediaries) on the agricultural industry and the economy at large.
At the micro level, farm finance can be characterized as the research of these middlemen
who provide credit to the agricultural industry and source their loanable capital from capital
markets.
Hence, agricultural finance ought to include the following elements:

i. Finance should be extended to farmers for farm activities;

ii. Finance should increase agricultural resource productivities, increasing investment returns
economically;

iii. Finance should support farm households' economic growth; and

iv. A third party should pay the improvement of the backward and forward connections with
the nation's economic growth.

Also, as explained below, farmers and bankers have distinct perspectives on farm finance.
Farmers Lending Institutions
i. Get funding for farm requirements at the appropriate time. Extend readily collectable
financing.
ii. Try to obtain financing at a fair price. Attempt to obtain a fair rate of return on investment.
iii. Make sure their personal assets aren't put at danger. Make sure that securities have a higher
level of liquidity for safety.

25
CLASSIFICATION OF AGRICULTURAL CREDIT

Agricultural credit can be divided into different categories according to its use, duration
(repayment period), security, ability to generate surplus money, creditor, and the number of
activities for which it is granted.
i) Purpose: Agricultural credit is divided into the following categories based on the reason for which
it is granted:
a) Development credit or Investment Credit: This is offered for either investing in long-lasting assets
or enhancing ones already in place. According to this, credit is given for:
- Purchase of land and land reclamation.
- Purchase of farm machineries and implements
- development of irrigation facilities
- Construction of farm structures
- development of plantation and orchards
-development of dairy, poultry, sheep/goat, fisheries, sericulture, etc.

b) Crop production receives credit for production: In this case, the loan amount is used to
pay salaries and to buy supplies.

c) Credit for marketing: To perform marketing tasks and raise the price of the produce, it is
crucial.

ii) Timeframe for Repayment: According to how long the borrower needs credit, it is
classified into:

a) Short – Term Credit: It is provided to farmers for terms of six to eighteen months and is
largely intended to cover cultivation costs, such as the purchase of seed, fertilizer,
pesticides, and the payment of labourers' wages. It is used as working capital to run the farm
profitably and is due to be repaid when the crops are harvested or sold. It should be paid
back in one lump sum.

26
b) medium- term Credit: Repayment is made over a two to five year period and is used to
pay for pump sets, farm equipment, bullocks, dairy cows, and other small farm
improvements. It may be paid back in monthly, quarterly, or annual installments.

c) long term credit : It is advanced against the mortgage of immovable property for terms
longer than five years and as long as twenty-five years to carry out development activities,
such as drilling wells, buying tractors, and ranking long-term improvements in the farm. It
Must be reimbursed in six monthly or yearly installments.

27
 COMMERCIAL BANKS

Commercial banks did not play a significant role in financing agriculture until 1950.
Nonetheless, the Rural Banking Inquiry Committee (1950) advocated for the expansion
of banking services to rural regions. Commercial banks were hesitant to get involved in
agriculture lending because they thought it would be expensive and dangerous. The
Presidency Banks (Bank of Bengal, Bank of Bombay, and Bank of Madras) were merged
to become the Imperial Bank of India in 1921. The Imperial Bank of India was the only
banker to the government prior to the founding of the Reserve Bank of India in 1935. As
the RBI didn't have a branch, the Imperial Bank of India operated as its representative while
conducting government business.
Commercial banks did not play a significant role in financing agriculture until
1950. Nonetheless, the Rural Banking Inquiry Committee (1950) advocated for the
expansion of banking services to rural regions. Commercial banks were hesitant to get
involved in agriculture lending because they thought it would be expensive and dangerous.
The Presidency Banks (Bank of Bengal, Bank of Bombay, and Bank of Madras) were
merged to become the Imperial Bank of India in 1921. The Imperial Bank of India was the
only banker to the government prior to the founding of the Reserve Bank of India in 1935.
As the RBI didn't have a branch, the Imperial Bank of India operated as its representative
while conducting government business.

28
 CHAPTER – 2
LITERATURE REVIEW

29
Laurens Klerkx
01 January 2012
Wageningen University, Netherlands

Over the years, there has been an evolution of systemic thinking in agricultural
innovation studies, culminating in the agricultural innovation systems perspective. In an attempt
to synthesize and organize the existing literature, this chapter reviews the literature on agricultural
innovation, with the threefold goal of,
(1) Sketching the evolution of systemic approaches to agricultural innovation and unravelling
the different interpretations;
(2) assessing key factors for innovation system performance and demonstrating the use of
system thinking in the facilitation of processes of agricultural innovation by means of
innovation brokers and reflexive process monitoring; and
(3) Formulating an agenda for future research. The main conclusion is that the agricultural
innovation systems perspective provides a comprehensive view on actors and factors that co-
determine innovation and in this sense allows understanding the complexity of agricultural
innovation.
However, its holism is also a pitfall as it allows for many interpretations, which complicates
a clear focus of this research field and the building of cumulative evidence. Hence, more work
needs to be done conceptually and empirically.

Andrew F. Fieldsend, Evelien Cronin, Eszter Varga, Szabolcs Biró and Elke Rogge
Journal: NJAS: Wageningen Journal of Life Sciences, 2020,

Innovation rests not only on discovery but also on cooperation and interactive learning. In
agriculture, forestry and related sectors, multi-actor partnerships for ‘co-innovation’ occur in
many forms, from international projects to informal ‘actor configurations’. Common attributes
are that they include actors with ‘complementary forms of knowledge’ who collaborate in an
innovation process, engage with a ‘larger periphery’ of stakeholders in the Agricultural
Knowledge and Innovation System (AKIS) and are shaped by institutions. Using desk research
and interviews, we reviewed, according to the Organizational Innovation Systems framework,
the performance of 200 co-innovation partnerships from across Europe, selected for their
involvement of various actors ‘all along the process’. Many of the reviewed partnerships
30
were composed of actors that had previously worked together and most interviewees
believed that no relevant actors had been excluded. In almost all cases, project targets
and objectives were co-designed to a great or some extent, and the mechanisms applied
to foster knowledge sharing between partners were considered to be very effective.
Great importance was attached to communication beyond the partnership, not simply for
dissemination but also for dialogue, and most interviewees evaluated the
communication/outreach performance of their partnership very highly. Most partnerships
received external funding, most did not use innovation brokers during the proposal
writing process and two thirds had access to information they needed. We discuss the
implications of these findings and question whether the AKIS concept as currently
interpreted by many policy makers can adequately account for the regional differences
encountered by co-innovation partnerships across Europe.

M. M. Kansanga, I. Luginaah, R. Bezner Kerr, E. Lupafya and L. Dakishoni Journal:

International Journal of Sustainable Development & World Ecology, 2020,

The pivotal role of social capital in smallholder agriculture is widely acknowledged. The
growth effect of social capital manifests in how networks and trust facilitate access to productive
resources and knowledge sharing among farmers. While sub-Saharan Africa is considered a
storehouse of rich social capital, recent literature indicates its rapid depletion due mainly to the
rise of capitalist agriculture and concomitant reorganization of the relations of production that
characterize smallholder agriculture. Agroecology is an alternative approach to agriculture aimed
at addressing the adverse impacts of capitalist agriculture, including improving farmer-to-farmer
networks. In this paper, we draw on longitudinal data from a five- year participatory agroecology
intervention in Malawi using Difference-in-Difference (DID) to compare the social capital
endowment of agroecology-practicing households (n = 514) and a control group of non-
agroecology households (n = 400). We further employed linear regression to examine the
relationship between social capital and agroecology adoption. Results from the DID analysis
show a positive and statistically significant change in mean social capital for participatory
agroecology households (β = 0.325, p< 0.001) compared to non-agroecology households (β =
0.108) after accounting for theoretically relevant factors. Overall, the averagetreatment effect
of the intervention on social capital was positive (β = 0.217, p< 0.01). We also found a
bidirectional relationship between social capital and adoption of agroecology practices
31
(β = 0.12, p< 0.001). These findings reveal the positive inroads of agroecology beyond the farm-
level and demonstrate the potential for policymakers to leverage these benefits to promote
sustainable agriculture.

Laurens Klerkx, Marc Shut, Cues Lewis and Catherine Kalel

Journal: IDS Bulletin, 2012,
First published: 12 September 2012

Advances in Knowledge Brokering in the Agricultural Sector: Towards Innovation

System Facilitation

The process of knowledge brokering in the agricultural sector, where it is generally called
agricultural extension, has been studied since the 1950s. While agricultural extension initially
employed research push models, it gradually moved towards research pull and collaborative
research models. The current agricultural innovation systems perspective goes beyond seeing
research as the main input to change and innovation, and recognizes that innovation emerges
from the complex interactions among multiple actors and is about fostering combined technical,
social and institutional change. As a result of adopting this innovation systems perspective,
extension is refocusing to go beyond enhancing research uptake, and engaging in systemic
facilitation or what has been called ‘innovation brokering’. Innovation brokering is about
performing several linkage building and facilitation activities in innovation systems, creating an
enabling context for effective policy formulation and implementation, development and
innovation. Conclusions are that an innovation systems perspective also has relevance for sectors
other than agriculture, which implies that in these sectors knowledge brokering as enhancing
research uptake and use should be complemented with broader innovation brokering activities.

Ola Teetered Westengen, Progress Nyanga, Douty Chibamba, Monica Guillen-Royo and
Dan Banik
Journal: Agriculture and Human Values, 2018,

The promotion of conservation agriculture (CA) for smallholders in sub-Saharan Africa is

subject to ongoing scholarly and public debate regarding the evidence-base and the agenda-
setting power of involved stakeholders. We undertake a political analysis of CA in Zambia that
combines a qualitative case study of a flagship CA initiative with a quantitative analysis of a
nationally representative dataset on agricultural practices. This analysis moves from an

32
investigation of the knowledge politics to a study of how the political agendas of the actors
involved are shaping agrarian practices. From its initial focus on CA as soil conservation and
sustainable agriculture, the framing of the initiative has evolved to accommodate shifting trends
in the policy arena. In tandem with the increased focus on climate adaptation, we see an increased
emphasis on private sector-led modernisation. The initiative has shifted its target group from the
poorest smallholders to prospective commercial farmers, and has forged connections between its
farmer-to-farmer extension network and private input suppliers and service providers. The link
between CA and input intensification is reflected in national statistics as a significantly higher
usage of herbicides, pesticides and mineral fertilizer on fields under CA tillage compared to other
fields. We argue that the environmental and participation agendas are used to buttress CA as an
environmentally and socially sustainable agricultural development strategy, while the prevailing
practice is the result of a common vision for a private sector-led agricultural development shared
between the implementing organisation, the donor and international organisations promoting a
new green revolution in Africa.

Quentin Toffolini and Marie-Hélène Jeuffroy

Journal: Agronomy for Sustainable Development, 2022,

The convergence among the rise of digital technologies, the attention paid to the localized
issues of transitions in practices toward agroecology, and the emergence of new open innovation
models are renewing and reviving the scientific community’s interest in on-farm experimentation
(OFE). This form of experimentation is claimed to be enhanced by digital tools as well as being
an enabler of production of credible, salient, and legitimate science insofar as it embraces a
farmer-centric perspective. However, the forms of research in which some experimental activities
on farms are anchored vary greatly, notably with regard to the actual forms that interventions on
farms take, the legitimacy of the actors involved and their roles, or the observations and
instruments applied for interpretation. We propose a systematic review of the literature and an
analytical framework in order to better understand this diversity of practices behind on-farm
experimentation. Our analysis segregated six major publication clusters based on themes
appearing in titles and abstracts. These themes guided a more in-depthanalysis of representative
articles, from which we identified seven types of OFE practices that are described and discussed
here with regard to the knowledge targeted, roles of the various actors, and on-farm experimental
space. Our typology provides an original basis for supporting reflexivity and building alignment
between the above-mentioned dimensions and the ways in

33
which new tools can support the experimental process.

Tania Carolina Camacho-Villa, Conny Almekinders, Jon Hellin, Tania Eulalia Martinez-
Cruz, Roberto Rendon-Medel, Francisco Guevara-Hernández, Tina D. Beuchelt and Bram
Govaerts
Journal: The Journal of Agricultural Education and Extension, 2016,

Purpose: Little is known about effective ways to operationalize agricultural innovation

processes. We use the MasAgro program in Mexico (which aims to increase maize and wheat
productivity, profitability and sustainability), and the experiences of middle level ‘hub
managers’, to understand how innovation processes occur in heterogeneous and the experiences
of middle level ‘hub managers’, to understand how innovation processes occur in heterogeneous
And changing contexts. Design/methodology/approach: We use a comparative case study
analysis involving research tools such as documentary review, key informant interviews, focus
group discussions, and reflection workshops with key actors. Findings: Our research shows how
a program, that initially had a relatively narrow technology focus, evolved towards an innovation
system approach. The adaptive management of such a process was in response to context-specific
challenges and opportunities. In the heterogeneous context of Mexico this results in diverse ways
of operationalization at the hub level, leading to different collaborating partners and technology
portfolios. Practical implications: MasAgro experiences merit analysis in the light of national
public efforts to transform agricultural advisory services and accommodate pluralistic agricultural
extension approaches in Latin America. Such efforts need long-term coherent macro level
visions, frameworks and support, while the serendipitous nature of the process requires meso-
level implementers to respond and adapt to and move the innovation process forward. Such efforts
need long-term coherent macro level visions, frameworks and support, while the serendipitous
nature of the process requires meso-level implementers to respond and adapt to and move the
innovation process forward.

Christina Ling-Hsing CHANG and Weng-Yi-Lang HSIAO

Journal: Agricultural Economics (Zemědělská ekonomika), 2017

In the agricultural industry, many brokers exploit the benefits between farmers and
customers and decrease the farmers' income. As the technology has developed, the internet has

34
become the best advertising medium for many industries. In light of this, this study based on the
Google Earth has designed an on-line Agricultural Products Navigation System operated by
mobile devices which can easily exclude brokers, and build the bridge between farmers and
customers in order to increase the farmers income and customer benefits. Moreover, based on the
IS success model of DeLone and McLean, by using the qualitative methodology, it is expected
that this model will be able to provide system developers with the knowledge to improve the
success of their systems.

Kwamina E. Banson, Nam C. Nguyen and Ockie J. H. Bosch

Journal: Systems Research and Behavioral Science, 2018,

The continuous growth in population and consumption, the intensity of competition for land,
water and energy and the overexploitation of the ecosystem have all affected Africa's ability to
sustain its food security and natural resources. In recent years, many promising agricultural
development initiatives were unable to provide sustainable solutions to agricultural challenges in
most parts of Africa, including Ghana, as a result of policy failures. The agricultural sector is a
complex system and requires a holistic approach to deal with the root causes of challenges. This
research therefore uses systems thinking tools, including causal loop diagrams and Bayesian
belief network modelling, to develop new structural systems models whereby stakeholders can
determine the components and interactions between the structure, conduct and performance
(SCP) of the agricultural sector in Ghana, by using the first five steps of the Evolutionary Learning
Laboratory. The results illustrate how the SCP elements interact together to influence the survival
and growth of the agricultural sector. The study identifies that stakeholders adopt several
strategies to survive and compete, which lead to overexploitation of the ecosystem. The results
from the Bayesian belief network models indicate that the implementation of systemically
determined interventions, policies and strategies could significantly improve the probability of
business survival and growth from 58.8 to 73%. Also, the chances of improving the SCP could
be increased from 39, 28.3 and 36.4 to 80.1, 55.9 and 62.4%, respectively, and these may vary
based on the conditional probability tables. This paper contributes to the systemic approach to
SCP, in that improvements to production and allocative efficiency may usher in a greater potential
for improving food security, supporting the ecosystem and further strengthening agricultural
sustainability. Copyright © 2016 John Wiley & Sons, Ltd.

Tristam Barrett, Giuseppe Feola, Marina Khusnitdinova and Viktoria Krylova

Journal: Human Ecology, 2017,
35
 The convergence of climate change and post-Soviet socio-economic and institutional
transformations has been underexplored so far, as have the consequences of such convergence
on crop agriculture in Central Asia. This paper provides a place-based analysis of constraints and
opportunities for adaptation to climate change, with a specific focus on water use, in two districts
in southeast Kazakhstan. Data were collected by 2 multi-stakeholder participatory workshops,
21 semi-structured in-depth interviews, and secondary statistical data. The present- day
agricultural system is characterized by enduring Soviet-era management structures, but without
state inputs that previously sustained agricultural productivity. Low margins of profitability on
many privatised farms mean that attempts to implement integrated water management have
produced water users associations unable to maintain and upgrade a deteriorating irrigation
infrastructure. Although actors engage in tactical adaptation measures, necessary structural
adaptation of the irrigation system remains difficult without significant public or private
investments. Market-based water management models have been translated ambiguously to this
region, which fails to encourage efficient water use and hinders adaptation to water stress. In
addition, a mutual interdependence of informal networks and formal institutions characterises
both state governance and everyday life in Kazakhstan. Such interdependence simultaneously
facilitates operational and tactical adaptation, but hinders structural adaptation, as informal
networks exist as a parallel system that achieves substantive outcomes while perpetuating the
inertia and incapacity of the state bureaucracy. This article has relevance for critical
understanding of integrated water management in practice and adaptation to climate change in
post-Soviet institutional settings more broadly.

Daniel Adu Ankrah and Comfort Yomle Freeman

Journal: The Journal of Agricultural Education and Extension, 2022,

This paper argues that large-scale agricultural programmes embedded with the Agricultural
Innovations Systems (AIS) thinking helps in facilitating innovations.

Seyni Siddo, Nassim Moula, Issa Hamadou, Moumouni Issa, Salissou Issa, Marichatou
Hamani, Pascal Leroy and Nicolas Antoine-Moussiaux
Journal: Archives Animal Breeding, 2018,

The complex balance between innovation and conservation regarding animal genetic
resources makes it difficult to find mutually accepted improvement pathways between breeders,
36
government agencies, and research and education institutions. This study maps stakeholder
viewpoints on cattle genetic improvement in Niger using the Q method. Fifty-three statements
derived from expert opinions and focus group interviews were ranked by 22 respondents along
a seven-grade scale expressing their degree of approval. The Q method reveals a limitedconsensus
on development goals, overall strategy, and the present context of operation. Beyond this
consensus, three discourses are identified that express distinct attitudes regarding the balance
between conservation and progress, leading to distinct strategies. The first discourse fits with
a modernist vision and government strategies established in the 2000s based on exotic
crossbreeding and improved purebred Azawak. The second discourse lines up with the previous
livestock development strategy of Niger (before 2000) based on indigenous breeds. The third
discourse represents a conservationist vision, with minor importance in the present sampling.
Tentative observations are proposed on the consequences of this divide in opinions on livestock
policies in Niger, including extension. The Q method appears effective in identifying the concerns
of stakeholders on complex agricultural innovation topics. As a sensing tool to follow-up policy
implementation in similarly complex agricultural topics, the Q method may inform adaptive
extension and education strategies.

Terry Griffin, Thomas Oberthür, Christian Huyghe, Weifeng Zhang, John McNamara
and Andrew Hall
Journal: Nature Food, 2022

Restructuring farmer–researcher relationships and addressing complexity and uncertainty

through joint exploration are at the heart of On-Farm Experimentation (OFE). OFE describes new
approaches to agricultural research and innovation that are embedded in real-world farm
management, and reflects new demands for decentralized and inclusive research that bridges
sources of knowledge and fosters open innovation. Here we propose that OFE research could help
to transform agriculture globally. We highlight the role of digitalization, which motivates and
enables OFE by dramatically increasing scales and complexity when investigating agricultural
challenges.

Rica Joy Flor, Grant Singleton, Madonna Casimero, Zainal Abidin, Nasruddin Razak,
Harro Maat and Cues Lewis
Journal: International Journal of Agricultural Sustainability, 2016,

37
 International agricultural research centres use approaches which aim to create effective linkages
between the practices of farmers, introduced technologies and the wider environment that affects
farming. This paper argues that such new approaches require a different type of monitoring as a
complement to conventional approaches that tend to favour a quantitative assessment of adoption
and impact at the farm level. In this context, we examined monitoring data from an Adaptive
Research (AR) project highlighting complementary qualitative analysis. Our emphasis is to
capture the improvisational capacities of farmers and to reveal social and institutional constraints
and opportunities in a broader innovation system. Our approach provided clear insights into how
rice farmers adjusted their practices and how actors involved linked (or not) with others in the
innovation system. We also demonstrated how institutions such as policies, religious rituals or
service provider arrangements pose conditions that establish or constrain practices aligned with
introduced technologies. A broader perspective in monitoring AR therefore provides important
additional insights into the factors which shape outcomes in farming communities. To expand
outcomes, AR projects should also pay attention to designing and testing new institutional
arrangements that create enabling conditions for agricultural innovation.

Arlette S. Saint Ville, Gordon M. Hickey and Leroy E. Phillip

Journal: Regional Environmental Change, 2015,

Smallholder farmers are key actors in addressing the food and nutrition insecurity challenges
facing the Caribbean Community (CARICOM), while also minimizing the ecological footprint
of food production systems. However, fostering innovation in the region’s smallholder farming
systems will require more decentralized, adaptive, and heterogeneous institutional structures and
approaches than presently exist. In this paper, we review the conditions that have been
undermining sustainable food and nutrition security in the Caribbean, focusing on issues of
history, economy, and innovation. Building on this discussion, we then argue for a different
approach to agricultural development in the Small Island Developing States of the CARICOM
that draws primarily on socioecological resilience and agricultural innovation systems
frameworks. Research needs are subsequently identified, including the need to better understand
how social capital can facilitate adaptive capacity in diverse smallholder farming contexts; how
formal and informal institutions interact in domestic agriculture and food systems to affect
collaboration, co-learning, and collective action; how social actors might better play bridging and
linking roles that can support mutual learning, collaboration, and reciprocal knowledge flows;
and the reasons underlying past innovation failures and successes to facilitate organizational
learning.
38
D. H. B. Bisseleua, L. Idrissou, P. Olurotimi, A. Ogunniyi, D. Mignouna and S. A. Bamire
Journal: The Journal of Agricultural Education and Extension, 2018,

In this paper, we explore the strategic role of Multi-stakeholder processes (MSP) in agricultural
innovations and how it has impacted livelihood assets’ (LAs) capital dynamics of stakeholders in platforms
in West Africa.

Simon J. Fielke, Neels Botha, Janet Reid, David Gray, Paula Blackett, Nicola Park and
Tracy Williams
Journal: The Journal of Agricultural Education and Extension, 2018

Purpose: This paper highlights important lessons for co-innovation drawn from three ex-
post case study innovation projects implemented within three sub-sectors of the primary industry
sector in New Zealand.

Laxmi Prasad Pant

Journal: Agroecology and Sustainable Food Systems, 2014,

Technological innovation is necessary but not sufficient to achieve food security. This article
uses interlinked social, ecological and technical systems theory to investigate why agricultural
biodiversity-rich developing countries fail to utilize “agroecological competence,” particularly
natural resource-based competitive advantage, to achieve food security despite substantial
investments in “technological competence” development. Empirical study involves a critical
examination of two food security strategies: improving subsistence agriculture to contribute to
Nepal's national food security strategies, and promoting high value agriculture integrating Indian
farmers into global commodity supply chains. Findings from these countries at very different
stages of economic agricultural development suggest that low and middle-income countries,
irrespective of their economic growth, cannot succeed unless technological competences are
complemented by critical systems of “learning competence.”

Ivan S. Adolwa, Stefan Schwarze, Imogen Bellwood-Howard, Nikolaus Schareika and

Andreas Buerkert
Journal: Agriculture and Human Values, 2017,
39
 Agriculture remains the backbone of most African economies, yet land degradation severely
hampers agricultural productivity. Over the last decades, scientists and development practitioners
have advocated integrated soil fertility management (ISFM) practices to improve soil fertility.
However, their adoption rates are low, partly because many farmers in sub-Saharan Africa are
not fully aware of the principles of this system innovation. This has been attributed to a wide
communication gap between farmers and other agricultural actors in agricultural knowledge and
innovation systems (AKIS). We add to the literature by applying innovation system approaches
to ISFM awareness processes. This study aims to assess if AKIS are effectively disseminating
ISFM knowledge by comparing results from two sites in Kenya and Ghana, which differ in the
uptake of ISFM. Social network measures and statistical methods were employed using data from
key formal actors and farmers. Our results suggest that the presence of weak knowledge ties is
important for the awareness of ISFM at both research sites. However, in Kenya AKIS are more
effective as there is a network of knowledge ties crucial for not only dissemination but also
learning of complex innovations. This is largely lacking in Ghana where integration of formal
and informal agricultural knowledge systems may be enhanced by fostering the function of
informal and formal innovation brokers.

Justina Adwoa Onumah, Felix Ankomah Asante and Robert Darko Osei
Journal: Innovation and Development, 2021,

Innovation platforms promote interactions among actors in an innovation system. Given

the importance of the cocoa sub-sector to the Ghanaian economy, having an innovation platform
is imperative for increasing innovative performance. Using qualitative data collection tools we
obtained in-depth information on the roles and linkages of actors to provide options for the
establishment/strengthening of the cocoa innovation platform in Ghana. Findings from the
thematic and social network analysis suggest that stimulating the participation of farmer groups,
actors in research, extension, policy, and the private sector is important as they have the power to
attract and sustain relevant actors to the network and hold the structure of the cocoa innovation
platform together. The study contributes to the literature by being the first study that has applied
the SNA tool to the cocoa innovation system in Ghana and also by emphasizing the prominent
role farmers and private sector actors play in such networks.

40
Marc Shut, Laurens Klerkx, Murat Sartas, Dieuwke Lamers, Mariette Mc Campbell,
Ifeyinwa Ogbonna, Pawandeep Kaushik, Kelsi Atta-Rah And Cues Lewis
Journal: Experimental Agriculture, 2016.

Innovation Platforms (IPs) are seen as a promising vehicle to foster a paradigm shift in
agricultural research for development (AR4D). By facilitating interaction, negotiation and
collective action between farmers, researchers and other stakeholders, IPs can contribute to more
integrated, systemic innovation that is essential for achieving agricultural development impacts.
However, successful implementation of IPs requires institutional change within AR4D
establishments. The objective of this paper is to reflect on the implementation and
institutionalization of IPs in present AR4D programmes. We use experiences from sub-Saharan
Africa to demonstrate how the adoption and adaptation of IPs creates both opportunities and
challenges that influence platform performance and impact. Niche-regime theory is used to
understand challenges, and anticipate on how to deal with them. A key concern is whether IPs in
AR4D challenge or reinforce existing technology-oriented agricultural innovation paradigms. For
example, stakeholder representation, facilitation and institutional embedding determine to a large
extent whether the IP can strengthen systemic capacity to innovate that can lead to real paradigm
change, or are merely ‘old wine in new bottles’ and a continuation of ‘business as usual’.
Institutional embedding of IPs and – more broadly – the transition from technology-oriented to
system-oriented AR4D approaches requires structural changes in organizational mandates,
incentives, procedures and funding, as well as investments in exchange of experiences, learning
and capacity development.
Ludic Temple, Estelle Biennale, Danielle Barrette and Gilles Saint-Martin
Journal: African Journal of Science, Technology, Innovation and Development, 2016,

The need for technological transition and the context of the privatization of public research
funding both challenge the evolution of methods to assess the impact of research in the
agricultural and food sectors. We analyze this evolution through a literature review and an
examination of a range of case studies on research completed in developing countries. In the first
part, the results stemming from the former analysis question the controversies raised by
quantitative approaches. In view of these controversies, we then examine the methodological
innovations taking place in a qualitative approach. A survey of case studies ultimately helps to
characterize the strategic resources that research generates with a view to improving its impact

on innovation and development.

41
Loadable Ladino Adejuwon
Journal: African Journal of Science, Technology, Innovation and Development, 2019

The dearth of technological progress in small-scale agricultural activities in sub-Saharan

Africa has been majorly attributed to inappropriate innovations. This study employs the user-
producer approach to recommend mechanisms to ensure the development of appropriate
innovations for the sector. An analytical framework consisting of five types of policy actions
which could foster the development appropriate innovations was developed from the approach to
execute a qualitative analysis on a series of successful and failed attempts to mechanize small-
scale oil palm fruit processing in Nigeria. The study revealed that initial technologies introduced
failed because they were made to process other raw materials, were beyond the financial
capability of processors and culturally incompatible. More successful innovations were found to
be those developed in conjunction with processors. Recommended mechanisms include
mandating and supporting research institutions to determine the needs of smallholders before
R&D activities commence; funding the adoption and debugging of adopted technologies to
further align technologies with smallholder needs; encouraging linkages among research
institutions to enhance capabilities for problem solving; and increasing the number and types of
research institutions in the sector to reduce the imposition of innovations.

42
, Marcello De Rosa, Yari Vecchio, Luca Bartoli and Felice Adinolfi
Journal: Agricultural and Food Economics, 2022,

The adoption of innovations may boost the transition to sustainable agricultural models.
Among these innovations, precision farming offers a fundamental contribution to sustainable soil
management and the improvement in product quality. The work is set against this background
and aims to analyse the rate of introducing precision farming tools and the variables that
prevent/facilitate this adoption. Although adoption rates in Italy remain relatively low, it is vital
to underline the obstacles that limit the broader use of precision agricultural technologies inside
farms. To this end, the literature has highlighted various elements of complexity (farm
characteristics, socio-economic and psychological), which can hinder or generate perceived
complexity and significantly reduce the potential for technology adoption. Inthis context emerges
the increasing importance of public and private activities related to knowledge transfer. The paper
focuses on agricultural knowledge and innovation systems, which are also relevant in light of the
recent proposal for the new regulation on rural development. The awareness–knowledge–
adoption–product (AKAP) sequence was used to reveal the gap between the potential and actual
adoption of innovation on Italian farms to comprehend the adoption process and identify relevant
barriers and the role knowledge systems played. Empirical findings show that AKIS has a critical
mediating function in promoting innovation uptake. Strengthening knowledge systems, acting on
the different phases of the AKAP sequence, could allow a greater understanding of precision
agriculture techniques and bottlenecks to adoption.

Mokaddes Ahmed Dipu, Natalie A Jones and Ammar Abdul Aziz

Journal: Agroecology and Sustainable Food Systems, 2022,

This paper identifies drivers and barriers to the uptake of regenerative agriculture (RA) as
a grassroots innovation in the southeast Queensland context. It aims to identify opportunities for
supporting RA as a viable pathway for sustainable food production. A mental model approach
involving semi-structured interviews was used to recognize the important interconnected causal
mechanisms at play within this grassroots agricultural system, as perceived by the study
participants who have an interest in RA in the southeast Queensland context. It revealed two key
interrelated themes driving uptake of RA in the region: economic viability of the approach and
shifting values and priorities of consumers and producers. Inhibiting factors identified include
limited access to local mentoring and advice, financial risk, and lack of supportive

43
policies. We conclude that adopting RA in a given region provides an opportunity to explore its
benefits and challenges in building resilient and sustainable food systems. Hence, facilitating
grassroots experimentation should be seized as an opportunity for driving society’s sustainability
agenda.

44
 CHAPTER – 3
RESEARCH
METHODOLOGY

45
 RESEARCH METHODOLOGY

3.1 STATEMENT OF RESEARCH PROBLEM

The study focused on A STUDY ON PUBLIC & PRIVATE FINANCIAL INSTUTION

IN FINANCING AGRICULTURE.

3.2 DATA COLLECTION

This study was Analytical Research and therefore required a mixed method approach.

Analytical research: is primarily concerned with testing and specifying and interpreting

relationship, by analyzing the facts or information already available.

The method used was quantitative and qualitative research methods.

Quantitative research: It is employed for measuring the quantity or amount of a

particular phenomenon by the use of statistical analysis.

Qualitative research: It is a non-quantitative type of analysis that is aimed at finding

out the quality of a particular phenomenon.

3.3 DATA SOURCE

Primary data source

A primary source provides direct or firsthand evidence about an event, object, person, or
work of art. Primary sources provide the original materials on which other research is based and
enable students and other researchers to get as close as possible to what actually happened during
a particular event or time period. Published materials can be viewed as primary resources if they
come from the time period that is being discussed, and were written or produced by someone with
firsthand experience of the event. Often primary sources reflect the individual viewpoint of a
participant or observer. Primary sources can be written or non-written (sound, pictures, artifacts,
etc.). In scientific research, primary sources present original thinking, report on discoveries, or
share new information.

Primary data is fresh data. This data is collected from books and direct questionnaire. The
data is collected from questionnaire. The questionnaire is filled from farmers through direct
46
interviewing them. These are the data that are collected for the first time by an investigator for a
specific purpose. Primary data are ‘pure’ in the sense that no statistical operations have been
performed on them and they are original. An example of primary data is the census of India.

Methods of Collecting Primary Data

1. Direct personal investigation

2. Indirect oral investigation

3. Information through correspondents

4. Telephonic interview

5. Mailed questionnaire

6. The questionnaire filled by enumerators

Secondary data source

Secondary data are those which have been already collected by some other agency and
which is already processed and published and used for their purpose. Generally speaking
secondary data are the information which is collected by some other organization for its own
need, but used by others for different purpose
They are the data that are sourced from someplace that has originally collected it. This means
that this kind of data has already been collected by some researchers or investigators in the past
and is available either in published or unpublished form. This information is impure as statistical
operations may have been performed on them already. Secondary data is collected from the
magazines, newspaper, etc.
Ex. Government sites, books, newspaper.

47
3.4 DATA REQUIRED

The source of data used in this project report are both primary and secondary data.

Primary data

The primary data is required such as opinions of farmers regarding different policies of
finance in agriculture, experiences and expectations etc.

Secondary data
The secondary data is required such as record about agricultural government schemes from
the National bank for agriculture and rural development (NABARD) and Regional rural bank
(RRB)

3.5 OBJECTIVE OF THE STUDY

1. To study the need of institutional finance in agriculture.

2. To study about financial institute to related the various government scheme like. Kisan
credit card in agriculture department.

3. To study the challenges of institutional finance in agriculture and their solutions.

4. To understand the system of NABARD /RRB/ co-operative banks.

5. To learn about various government schemes.

6. . To study the challenges of institutional finance in agriculture and their solutions.

48
3.6 SIGNIFICANCE OF THE STUDY

1. Use of new technological inputs purchased through farm finance helps to increase
the agricultural productivity

2. Farm finance can also reduce the regional economic imbalances and is equally good
at reducing the inter–farm asset and wealth variations.

3. Farm finance is like a lever with both forward and backward linkages to the
economic development at micro and macro level

4. As Indian agriculture is still traditional and subsistence in nature, agricultural

finance is needed to create the supporting infrastructure for adoption of new
technology.

3.7 LIMITATIONS OF STUDY

During this project following limitations where known:

 In agriculture you decide to implement something (in regards to crops) and you have to
wait for a year to see whether it’s working or not. This truly limits the agility and
innovativeness of an agricultural business as if you do farm for 60 years.
 Problems of Agricultural Credit in India with Suggested Remedies! An average Indian
farmer, who has to work on an uneconomic holding’, using traditional methods of
cultivation and being exposed to the risks of a poor agricultural season is almost always
in debt. He is a perennial debtor.

49
Methods of Collecting Primary Data

Direct personal investigation

In direct personal invertigation, the investigator obtains the first-hand information from the
respondents themselves. He personally visits the respondents to collect the data. Merits: Reliable
and accurate data collected. Flexibility for questions.
For example if a survey is to be conducted about the workers of a factory, then the investigator
will personally meet the workers of the factory and get the necessary information

Indirect oral investigation

What is Indirect Oral Investigation? Indirect Oral Investigation is a method of collecting

primary data through which the investigator approaches third parties who are in the possession of
required information about the subject of enquiry.
Indirect Oral investigation is the method in which the data is collected by the investigator by
interviewing orally the persons close to the original incidence. It is used when the original persons
are not available to give information or when they are reluctant to give information.

Information through correspondents

What is Information from Local Sources or Correspondents? It is a method of collecting

primary data under which the investigator appoints local persons or correspondents at different
places
A journalist might work as a TV station's Middle East correspondent or a newspaper's
education correspondent. You can also call yourself a correspondent if you're a regular letter or
email writer, corresponding, or communicating, with someone.

Telephonic interview
Basically, a telephonic interview is the first contact, the candidate establish with the company.
Such interviews are often used for shortlisting the candidates in order to narrow the crowd of
applicants who will be invited for face-to-face interviews.
Technical phone interviews are an essential part of the hiring process at most tech companies.
They help the recruiter determine your technical competency for such positions as a coder or
programmer.
50
 Mailed questionnaire
Mailed questionnaires.is a tool of research where an answerer sends his answers through
mail to the researcher. It is administered by mail to designated respondents under an
accompanying cover letter and is returned, by mail, by the respondent to the research
organization.

Types of questionnaire questions:

 Open-Ended Questions.
 Multiple Choice Questions.
 Ordinal Scale Questions.
 Interval Scale Questions.
 Ratio Scale Questions.

SAMPLE SIZE:

Financial institutions which is provide agriculture finance to the farmers.

51
3.8 RESEARCH DESIGN

MEANING OF RESEARCH DESIGN:

A Research design is defined as “a logical and systematic plan prepared for directing a
research study. It specifies the objectives of the study; the methodologies and techniques to be
adopted for achieving the objectives.”

“Research design actually constitutes the blue print for the collection, measurement and
analysis of the data”.

 Guidelines to the Researcher:

 When to start and when to complete the research work?

 What data to be collected?
 From where the data to be collected?
 How the data to be collected? etc.

 Organizing Resources :

 Funds required for collecting the data.

 The equipment / instruments and materials required to conduct the research (especially
in the case of physical sciences like physics, chemistry, etc.)
 The manpower to collect the data.

 Selection of data:
 Survey or Interview
 Observation
 Experimentation.

52
 CHAPTER - 4
DATA ANALYSIS
INTERPRETATION AND
PRESENTATION

53
 DATA ANALYSIS AND RESEARCH

Farm finance has become an important input due to the advent of capital intensive
agricu1tural technologies. Farmers require capital in order to enhance the productivities of
various farm resources. Indian agriculture, in general, is characterized by low and uncertain
returns. In order to break the vicious cycle of low returns → low savings → low investment
→low returns, provision of external finance to farmers becomes inevitable.
Credit is made available in rural areas by both organized and unorganized credit institutions,
for both consumption and development. Due to differences in the banking systems followed by
the bankers, the socioeconomic circumstances of the borrowers, and the infra- structural facilities
and institutional support offered to the borrowers, the provision of credit by these agencies
involved many challenges for both bankers and borrowers. Additionally, the government
regularly modifies its agricultural credit policies in regards to institutional credit setup, credit
rationing, interest rates, subsidies, and the operation of markets and other developmental
agencies, all of which have an impact on the amount of credit available to farmer-borrowers.
Hence, the effects of all these variables ultimately affect farm results. So, if one could
comprehend the theoretical underpinnings of the Indian agricultural credit system, theobstacles
faced by lenders and borrowers, and the government's efforts to address these issues, capital
challenges might be clearly comprehended.

54
CAUSES OF RURAL INDEBTEDNESS

In India, the issue of rural indebtedness is treated extremely casually, and it is typical to
consider farmer illiteracy, unfavorable climatic circumstances, an increase in population
pressure, subdivision and fragmentation of properties, and the money lender 29 system, poor
marketing, farmers' excessive spending, etc. as the root causes of rural indebtedness.
(1) Ancestral debt (Inherited debt): The primary source of current debt is inherited debt,
which is passed down from father to son, generation to generation.
(2) Sub-division and fragmentation of holding: As a result of population pressure and
overpopulation, land is becoming increasingly divided and fragmented. Farmers are
getting poorer and poorer as a result of unprofitable land holding.
(3) Rural poverty: Rural poverty is the main cause of debt in the rural sector, which has
absurdly low income, as the poor are unable to pay back their loans.
(4) Agriculture depends on nature: There is a chance that there won't be any rain, that it will
fall insufficiently or prematurely, that there will be a drought, or that there will be a
weather effect.
(5) Social and religious events related to marriages, births, deaths, etc. are examples of
wasteful or unproductive expenditures that lead to an increase in debt.

55
QUESTIONS & ANALYSIS
We have surveyed of 5 farmers from Karat and panvel region of Thane districts. Following is
the questionnaires and answers given by them. Data has analyzed according to answers given by
them and conclusion has been provided.

THE DATA ANALYSIS AND INTERPRIATION OF FARMERS

1) Do you have equity holding in co-operative dairy and factories?
The response related to agriculture finance:

QUESTION ANALYSIS

0
FARMER 1 FARMER 2 FARMER 3 FARMER 4 FARMER 5

POSSITIVE RESPOSE NEGATIVE RESPOSE

INTERPRITATION

Above diagram is explained the positive and negative response related to equity holding
in co-operative factories

56
QUESTIONS:
 Do you have saving account and loan account in nearby co-operative bank?
 Have you applied for district level competition organized by agriculture
department?

Chart Title
6

0
FARMER 1 FARMER 2 FARMER 3 FARMER 4 FARMER 5

POSSITIVE RESPOSE NEGATIVE RESPOSE

INTERPRETATION:

o Lengthy procedures of collecting document and papers is also big hurdle in front of
farmers.
o Behaviour of several government officials towards farmers is also not good and helpful.

57
 QUESTIONS:

 Are you satisfied with MAP provided by government for food grains crop?
 Are you interested in horticulture farming and its schemes?

Chart Title
6

0
FARMER 1 FARMER 2 FARMER 3 FARMER 4 FARMER 5

POSSITIVE RESPOSE NEGATIVE RESPOSE

INTERPRITATION

o MSP is not available for all the crops which are grown by these farmers and they are not
able to get fair price for their produce.
o Credit is not available for horticulture and other newly introduced genetically modified
crops.

58
 QUESTIONS:
o Have you applied for subsidy on fertilizer and farm equipment?
o Does the interest rate of loans provided by rrb’s and co-operative is affordable as
Compare to commercial bank?

Chart Title
4.5

3.5

2.5

1.5

0.5

0
FARMER 1 FARMER 2 FARMER 3 FARMER 4 FARMER 5

POSSITIVE RESPOSE NEGATIVE RESPOSE

INTERPRITATION
o Credit provided by most of the government institutional finance demands mortgage
which is basically land holding of farmers. Credit available to them in proportion of
landholding which is very small.
o Most of the time, farmers are not fully aware about several schemes launched by
government department.

59
Farmer 1:
Locality: Panvel
Crops: Wheat, Rice

SR NO. QUESTIONS ANSWERS

1 Have you applied for district level competition organized by YES

agriculture department?
2 Does the interest rate of loans provided by RRBs and YES
Cooperatives is affordable as compared to commercial bank?
3 Do you have equity holding in cooperative dairy and factories? YES
4 Are you satisfied with MSP provided by govt for food grains NO
crop?
5 Are you interested in Horticulture farming and its schemes? NO
6 Do you have saving account and loan account in nearby YES
cooperative bank?
7 Do you know about the famous govt. schemes? YES

8 Do you have income proof for availing the benefits of various NO

animal husbandry schemes?
9 Have you applied for subsidy on fertilizers and farm NO
equipment’s?
10 Do you apply for short term and medium-term loans for land YES
reclamation in RRBs?

60
 ANSWER

YES NO

Interpretation:

 There is huge corruption in agricultural department and various other related

departments.
 Small and marginal farmers don’t have political influence as compared to big and
wealthy farmers which keep them outside of beneficiary circle of various govt schemes.
 There is urgent need of digital technology and E-governance in various departments to
making administration fast and quick.

61
Farmer 2:
Locality: karjat
Crops: leafy vegetable, rice

SR NO QUESTIONS ANSWERS

1 Do you know about the famous govt. schemes? NO

2 Do you have equity holding in cooperative dairy and NO

factories?
3 Have you applied for subsidy on fertilizers and farm YES
equipment’s?
4 Are you interested in Horticulture farming and its YES
schemes?
5 Have you applied for district level competition organized YES
by agriculture department?
6 Are you satisfied with MSP provided by govt for food YES
grains crop?
7 Does the interest rate of loans provided by RRBs and NO
Cooperatives is affordable as compared to commercial
bank?
8 Do you have saving account and loan account in nearby YES
cooperative bank?
9 Do you have income proof for availing the benefits of YES
various animal husbandry schemes?
10 Do you apply for short term and medium-term loans for YES
land reclamation in RRBs?

62
 YES NO

INTERPRETATION:

 Various documents and long administrative process for getting subsidy on fertilizer
and farm equipment s is very hectic.
 Behaviour of various government officials towards farmers is also not good and
helpful.
 Illitercey among farming communities is also making them reluctant towards getting
benefits of governments schemes.

63
 CHAPTER-5
FINDINGS, CONCLUSION
AND SUGGESTIONS

64
5.1 FINDINGS:

Above diagram is explained the positive and negative response related to equity holding in co-
operative factories.
Lengthy procedures of collecting document and papers is also big hurdle in front of farmers.
Behaviour of several government officials towards farmers is also not good and helpful.
MSP is not available for all the crops which are grown by these farmers and they are not able to
get fair price for their produce.
Credit is not available for horticulture and other newly introduced genetically modified crops.
Credit provided by most of the government institutional finance demands mortgage which is
basically land holding of farmers. Credit available to them in proportion of landholding which
is very small.
Most of the time, farmers are not fully aware about several schemes launched by government
department.
There is huge corruption in agricultural department and various other related departments.
Small and marginal farmers don’t have political influence as compared to big and wealthy
farmers which keep them outside of beneficiary circle of various govt schemes.
There is urgent need of digital technology and E-governance in various departments to making
administration fast and quick.
Various documents and long administrative process for getting subsidy on fertilizer and farm
equipment s is very hectic.
Behaviour of various government officials towards farmers is also not good and helpful. Illitercey
among farming communities is also making them reluctant towards getting benefits of
governments’ schemes.

65
5.2 CONCLUSION:

One of the most crucial components in any agricultural development operations for
raising agricultural productivity is agricultural finance. Farmers must be given timely
access to sufficient funding for land development, farm mechanisation, and irrigation. As a
result, agricultural financing is a crucial tool in streamlining the process of agricultural
activities. In the framework of new strategy and for bringing the agricultural sector up to
date and contemporary, finance is crucial.
Agricultural credit itself is not an input, but it aids in fostering the adoption of
cutting-edge production techniques by utilizing more inputs and promoting private
investment in agriculture. Both institutional and non-institutional credit agents, such as co-
ops and commercial banks, provide financing to landowners, traders, and their friends and
family.
Institutional financing is regarded as the primary source of external finance to
support and accelerate the development of the agriculture sector as the base of available
resources and the capacity to generate sufficient levels of financial resources within the
rural sector, particularly in the agriculture sector, are currently limited. The supply of
sufficient, prompt, and liberal finance to farmers has become a key component of India's
agricultural development strategy.
Commercial banks played a very small role in agricultural development, mostly
providing indirect financing. The nationalisation of 14 major banks in July 1969 and 6
banks in April 1980 considerably boosted the previously underutilized area of farm
financing by commercial banking facilities. Agriculture was given special attention, and
specific programmes and initiatives were established to aid the weaving community, which
included small and marginal farmers.
Because agriculture in the past was primarily subsistence-based and required less
capital to produce, credit was also scarce. Agriculture has evolved over time to become
more credit- and capital-intensive. Over 69% of Indian farmers are small and marginal
farmers, and thus earn relatively little money. Poor income leads to little savings, which
prevents one from making more investments and forces them to deal with low income once
more. Indian farmers are thus caught in a vicious cycle; financing is crucial to breaking it.
Investment is needed in agriculture at the time of planting and growing crops, and if the
farmer has the necessary finances, credit can meet these needs.

66
5.3 SUGGESTIONS

Various scientific methods of cultivation should be employed to increase production. Farmers

should adopt techniques like rotation of crops, use of fertilizers, pesticides. Farmers using new
teclmiques must be encouraged. The Key to Improving Agricultural Productivity is Efficient
Farm Management. Agricultural productivity is a big concept with a global impact, but it starts
with efficient on-farm management. How productive or efficient our global food production
systems can become will significantly impact our future well-being. To the maximum extent
possible organic farming system rely upon crop rotations, use of crop residues, animal manures,
legumes, green manures, off farm organic wastes, biofertilizers, mechanical cultivation, mineral
bearing rocks and aspects of biological control to maintain soil productivity and tilth to supply
plant.
Marketing of agricultural products will be improved by linking producers to commercial outlets,
establishing more market outlets and increasing market-compliant products. Online marketing,
promotion, and branding will also help stimulate product sales.
Allowing more private sector participation in the financial system, making it easier for funds to
flow into capital markets, and properly regulating systemically important NBFCs are all ways
for the financial sector to evolve in a direction that can position India for fast, broad-based
growth.
NABARD is a development bank focussing primarily on the rural sector of the country. It is the
apex banking institution to provide finance for Agriculture and rural development. Its headquarter
is located in Mumbai, the country's financial capital.

67
5.3 BIBLIOGRAPHY

1. Agricultural Finance and Management by S. Subba Reddy and P. Raghu Ram, Oxford &
IBH Publishing Co. Pvt. Ltd, New Delhi
2. Agricultural economics by S. Subba Reddy, P. Raghu Ram, T.V. Neelakanta Sastry and
I. Bhavani Devi, Second Edition, Oxford & IBH Publishing Co. Pvt. Ltd, New Delhi
3. An introduction to Agricultural Finance by U. K. Pandey, Kalyani Publishers, New Delhi
4. Datta, R. and Sundharan, K.P.M., 2009, Indian Economy, S Chand and Company. Ltd.,
New Delhi
5. Gowhar, B. A., Ashaq, H. G. and Padder, M. J., 2013, A study on institutional credit to
agriculture sector in India. Int. J. Curr. Res. Aca. Rev. 2013; Vol 1 (4):72-80
6. Kumar, A., Singh, K. M. and Sinha, S., 2010, Institutional Credit to Agriculture Sector
in India: Status, Performance and Determinants. Agricultural Economics Research
Review. Vol. 23 (2): 253-264
7. Misra and Puri, “Indian Economy”, Himalaya Publishing House Mumbai 2010, pp. 375-
377.
8. Reddy S. S. and Ram, P.R., 1996, “Agricultural Finance and Management” Oxford &
I.B.H. Publishing Co. Pvt. Ltd., New Delhi, P.256.
9. Basu, S.K. (1979), Commercial Banks and Agricultural Credit- A Study of Regional Disparity in
Indian Allied Publications, Mumbai Choubey, B.N. (1983), Agricultural Banking in India,
National Publishing House, New Delhi
10. Banarjee, P.K. (1970), Indian Agricultural Economy, Chaitanya Publication, New Delhi. 
Choubey, B.N. (1979), Principles and Practice of Cooperative Banking in India, Asia Publishing
House, Mumbai.
11. Desai, S.S.M (1990), Agriculture and Rural Banking in India, Himalaya Publishing House,
Mumbai.  Dinesh, C. (1970), Agricultural Finance by Commercial Bank: A Pilot Study,
Vaikuntha Mehta Institute of Cooperative Management, Pune
12. Gadgil, M.V. (1988) Banking & Rural Development. L K Naidu Bank Finance for Rural
Development, Ashish Publishing House, New Delhi.  Gupta, B.L (2010) Indian Economic
Development, Arya Publications, PP 97-98
13. Jain, N.K (2013), Agricultural Finance, ABD Publishers, Jaipur, PP 20-21. Kalhon & Singh,K.
(1985) Managing Agricultural Finance, Allied Publishers, New Delhi.

68
 14. Jain, N.K (2013), Agricultural Finance, ABD Publishers, Jaipur, PP 20-21. Kalhon & Singh,K.
(1985) Managing Agricultural Finance, Allied Publishers, New Delhi.
15. Mishra, A.K & Mohapatra , U (2017) Op. cit P 413.
16. Mishra, A.K & Mohapatra, U (2017) , Agricultural Finance in India – An Overview, IJESRT, vol
6(8), www.ijesrt.com p. 411.
17. Parthasarathy, G (2000), Agricultural Development & Small Farmers, Vikash Publishing House
Malhotra, J.S (1998) Agricultural Finance in Jammu & Kashmir, Anmol Publication, New Delhi.
 Shylendra, H. S (2008) Role of Self Help Groups, Yojana, vol 52, P 25.

WEBIBLIOGRAPHY

1. Statistical Tables Relating to Banks in India (Various Issues), Reserve Bank of India, Mumbai.
URL: (www.rbi.org.in)
2. . www.agrimoney.com.

69
 APPENDIX

QUESTIONNAIRE:

1. Do you have equity holding in cooperative dairy and factories?

☐ YES
☐ NO
2. Have you applied for district level competition organized by agriculture department?

☐ YES
☐ NO
3. Does the interest rate of loans provided by RRBs and Cooperatives is affordable as
compared to commercial bank?

☐ YES
☐ NO
4. Are you satisfied with MSP provided by govt for food grains crop?

☐ YES
☐ NO
5. Do you have saving account and loan account in nearby cooperative bank?
☐ YES
☐ NO
6. Are you interested in Horticulture farming and its schemes?

☐ YES
☐ NO
7. Do you know about the famous govt. schemes?
☐ YES
☐ NO

70
8. Do you have income proof for availing the benefits of various animal husbandry
schemes?
☐ YES
☐ NO

9. Have you applied for subsidy on fertilizers and farm equipment’s?

☐ YES
☐ NO
10. Do you apply for short term and medium-term loans for land reclamation in RRBs?

☐ YES
☐ NO

71