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Credit Exclusion of the Poor: A Study of Cultivator Households in India

Author

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  • Manojit Bhattacharjee
  • Meenakshi Rajeev

Abstract

In India, about 55% of the workforce is dependent on agriculture and most of these cultivators, being small or marginal farmers, require financial help on a regular basis for their farming activities. Needless to say, such poor farmers suffer from irregular and volatile income. As these households do not possess adequate savings, accessibility to financial resources at reasonable terms and conditions is becoming a crucial parameter for their productive activities and hence, in turn, their well-being. Based on the household level data provided by the National Sample Survey Organisation (NSSO) of India, this paper examines the nature of exclusion faced by farmer households in credit market across selected prominent states of India.The paper also tries to identify the factors that explain exclusion from access to financial resources by developing a methodology for detection of credit exclusion. It is observed from this analysis that economic development and education increase access to financial resources.

Suggested Citation

  • Manojit Bhattacharjee & Meenakshi Rajeev, 2013. "Credit Exclusion of the Poor: A Study of Cultivator Households in India," ICDD Working Papers 8, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    • Handle: RePEc:ajy:icddwp:8
    as

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    File URL: https://kobra.uni-kassel.de/bitstream/handle/123456789/11803/ICDD_Working_Paper_No8.pdf?sequence=1&isAllowed=y
    File Function: First version, 2013
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    References listed on IDEAS

    as
    1. Narayanamoorthy, A. & Kalamkar, S.S., 2005. "Indebtedness of Farmer Households Across States: Recent Trends, Status and Determinants," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 60(3), pages 1-13.
    2. Priya Basu, 2006. "Improving Access to Finance for India's Rural Poor," World Bank Publications - Books, The World Bank Group, number 6927, December.
    3. Manojit Bhattacharjee & Meenakshi Rajeev & B.P. Vani, 2009. "Asymmetry in Information and Varying Rates of Interest," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(4), pages 339-364, October.
    4. Manojit Bhattacharjee & Meenakshi Rajeev, 2010. "Interest rate formation in informal credit markets in India: does level of development matter?," Global Development Institute Working Paper Series 12610, GDI, The University of Manchester.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tulika Bhattacharya, 2018. "Farmers in Peri-Urban Regions:Socio-Economic Changes and Access to Finance Study for Indian Economy," ICDD Working Papers 23, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    2. Manojit Bhattacharjee & Meenakshi Rajeev, 2014. "Accessibility to Credit and its Determinants: A State-level Analysis of Cultivator Households in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(3), pages 285-300, August.
    3. Ghosh, Saibal & Vinod, D., 2017. "What Constrains Financial Inclusion for Women? Evidence from Indian Micro data," World Development, Elsevier, vol. 92(C), pages 60-81.

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