eprintid: 9150
rev_number: 11
eprint_status: archive
userid: 1305
dir: disk0/00/00/91/50
datestamp: 2015-11-24 08:08:12
lastmod: 2018-03-03 10:02:51
status_changed: 2015-11-24 08:08:12
type: article
metadata_visibility: show
creators_name: Kumar, R
creators_name: Vikraman, S
creators_name: Bantilan, C
creators_name: Lagesh, M A
creators_name: Yadav, U S
icrisatcreators_name: Kumar, R
icrisatcreators_name: Vikraman, S
icrisatcreators_name: Bantilan, C
icrisatcreators_name: Lagesh, M A
icrisatcreators_name: Yadav, U S
affiliation: ICRISAT (Patancheru)
country: India
title: Truncated Access to Institutional Agricultural Credit as a Major Constraint for Rural Transformation: Insights from Longitudinal Village Studies
ispublished: pub
subjects: s2
subjects: s2.4
divisions: D6
crps: crp1.14
full_text_status: public
keywords: Rural credit, Agricultural credit, Interest subvention, Eastern region, SAT region, Village level studies, Panel data, India, Longitudinal village studies
note: This article is part of the issue " Conference Issue on Inter- and Intra - Sectoral Dynamics for Transforming Indian Agriculture" published by Agricultural Economics Research Review (AERI), India in 2015
abstract: The study has examined the trend of formal credit growth and its influence on rural transformation in
terms of accelerating growth in household income levels. It has also identified the factors influencing the
access to formal agricultural credit in the study regions, viz. eastern and semi-arid tropics (SAT) of India.
The longitudinal household level data of about 1200 households in three states each in these two regions
have been analysed for the period 2010 to 2013. The study has observed that the poor access to formal
credit has compelled these households to take loan from informal sources who sometimes charge interest
@ 60 to 120 per cent per annum, threatening the livelihoods of these smallholders and poor households.
During the study period of three years (2010 - 2013), no change in situation was visible in these villages
and the access to formal sources of agricultural credit seems to remain truncated. The main reasons for
this disturbing trend is the lack of institutional framework to provide cheap and subsidized credit to these
marginal and landless households, who take land on lease for cultivation. The Tobit model has been fitted
to determine the accessibility to formal agricultural credit in these regions. The study has highlighted the
need of building a strong and inclusive financial infrastructure to provide necessary credit support to the
smallholder farmers in the eastern and SAT regions for bringing a rapid rural transformation.
date: 2015
date_type: published
publication: Agricultural Economics Research Review
volume: 28
publisher: Agricultural Economics Research Association (AERA)
pagerange: 137-150
refereed: TRUE
issn: 0971-3441
related_url_url: https://scholar.google.co.in/scholar?as_q=Truncated+Access+to+Institutional+Agricultural+Credit+as+a+Major+Constraint+for+Rural+Transformation+Insights+from+Longitudinal+Village+Studies&as_epq=&as_oq=&as_eq=&as_occt=title&as_sauthors=&as_publication=&as_y
related_url_type: pub
citation:   Kumar, R and Vikraman, S and Bantilan, C and Lagesh, M A and Yadav, U S  (2015) Truncated Access to Institutional Agricultural Credit as a Major Constraint for Rural Transformation: Insights from Longitudinal Village Studies.  Agricultural Economics Research Review, 28.  pp. 137-150.  ISSN 0971-3441     
document_url: http://oar.icrisat.org/9150/1/2015_Rural%20Credit_AERA.pdf