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Interlinking! of Credit and Commodity Markets in Karnataka

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  • Asha Maheshwari

Abstract

Prior to the expansion of the institutional sector. credit to agriculture was mainly provided by landlords, moneylenders and traders. Many a time all of these were the same person. The unequal bargaining position of small cultivators/tenants against the powerful classes in the village makes for interlocked markets. which leads to stagnation In agrlculture. In Karnataka, the foodgrain sector stagnated in the eighties The paper investigates whether this sragnatlon was due to interlinked markets. The results show that expansion of the institutional credit sector, abolition tenancy and other interventions by the State weekened the interlockedness of markets in Karnataka. Whatever interlockedness persisted in the elghties was not explorative, and hence not responsible for the stagnation in the foodgrain sector in the eighties.

Suggested Citation

  • Asha Maheshwari, 1999. "Interlinking! of Credit and Commodity Markets in Karnataka," Journal of Social and Economic Development, Institute for Social and Economic Change, Bangalore, vol. 2(1), pages 128-146, January-J.
  • Handle: RePEc:sch:journl:v:2:y:1999:i:1:p:128-146
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