IDEAS home Printed from https://ideas.repec.org/a/ags/aerrae/57467.html
   My bibliography  Save this article

Inadequacies of Institutional Agricultural Credit System in Punjab State

Author

Listed:
  • Singh, Sukhpal
  • Kaur, Manjeet
  • Kingra, H.S.

Abstract

In spite of various measures to rejuvenate farm credit, the flow of credit to agriculture sector remained inadequate quantitatively and qualitatively. The study is based on a random sample of 600 farm households covering 11 districts in Punjab, comprising 107 marginal, 150 small, 53 semi-mediums, 87 medium and 103 large farmers and pertains to the year 2005-06. The total debt per sample farm household from both institutional and non-institutional sources has been found to be Rs 178934 in the year 2005-06. The institutional sources have contributed about 62 per cent to the total debt and non-institutional 38 per cent. Although the institutional credit has increased rapidly in recent years in Punjab, it still lacks behind the productive needs of the farmers in Punjab. A farmer on an average has to incur Rs 4016 for obtaining a loan from commercial banks, which amounts to 5 per cent of the total loan obtained by him. In the case of cooperatives, the transaction cost has been worked out to be 1.2 per cent of the loan and the cooperatives are located right in the villages. About 59 per cent farmers have reported the procedure to get loans from the institutional agencies to be complicated and time-consuming. On the contrary, availing non-institutional loan has been found easy and is the reason of preference given by 51 per cent farmers to it. Policy implications include issuing of a simple but comprehensive record book to farmers containing information relating to his land record and institutional transactions; computerization of land records by the state government; simplification of loan application form; and maintenance of proper records of loan applications and making disbursement of loan mandatory.

Suggested Citation

  • Singh, Sukhpal & Kaur, Manjeet & Kingra, H.S., 2009. "Inadequacies of Institutional Agricultural Credit System in Punjab State," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2), July.
    • Handle: RePEc:ags:aerrae:57467
    DOI: 10.22004/ag.econ.57467
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/57467/files/15-Sukhpal-Singh.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.57467?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph Chisasa, 2016. "Determinants of the demand for credit by smallholder farmers: survey results from South Africa," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 26-46.
    2. Jainuddin, S.M. & Hiremath, G.M. & Patil, S.S., 2015. "Efficiency of Kisan Credit Card (KCC) Scheme in Karnataka: A Comparative Study of Commercial and Co-operative Banks," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(2).
    3. Chisasa, Joseph, 2015. "Sources Of Growth In South African Sources Of Growth In South African Agriculture – A Corporate Finance Perspective," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 38(4).
    4. Chisasa, Joseph, 2015. "Sources of Growth in South African Agriculture - A Corporate Finance Perspective," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 2015(35).

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:57467. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeraiea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.