Citation

Kannan E. Indian Journal of Agricultural Economics 2011; 66(3): 444-456.

Copyright

(Copyright © 2011)

DOI

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PMID

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Abstract

The article focuses on the relationship between agricultural credit policy, credit disbursements, and crop productivity. The growth performance of Karnataka's agriculture has not been impressive during recent years. The average annual growth in agriculture and allied sector was meager at 0.5 per cent during 1999-2000 to 2008-09. One of the reasons attributed to the poor performance of agriculture was the decline in public investment during 1980s and 1990s. Meanwhile, encouraged by developments at the central government level and alarmed by unabated farmers' suicides in the state, the Government of Karnataka announced the concessional interest on crop loan to enable farmers to access cheap credit in 2004-05. Though policy decision on this came late, but it was important to realize that commercial banks and RRBs taken together have accounted for about three-fourth of ground level disbursement of agricultural loans, which will be discussed in the subsequent sections.

Language: en

Keywords

India; decision making; agricultural economics; credit provision; Karnataka; lending behavior; state role; agricultural policy; banking; crop production; rural finance