Study on Access Agricultural Credit by Small and Marginal Farmers in India

Abstract

Increased formalisation, more financial inclusion, and economic potential from changes spurred by digital technology have all contributed to the Indian economy's noteworthy gains. According to this survey, there has been a noticeable increase in the amount of loans given to small and marginal farmers—from 44.1% to 56.9%. On the other hand, throughout the same time frame, the proportion of related accounts decreased from 62.7% to 56.9%. In contrast to long-term loans, short-term credit has notably seen steady yearly increase. When the Compound Annual Growth Rate (CAGR) for 1998–1999, 2021–2022, and total credit were analysed, the CAGR for production (crop) credit was 19.12%, for term loans it was 18.96%, and for total credit it was 19.13%. By contrasting the years 2021–22 with 2013–14, the study evaluates the proportionate presence of small and marginal farmers in ground-level lending as well. In order to improve output, income, and the general quality of life for small and marginal farmers, the findings point to the necessity of stepping up efforts in the areas of alternative livelihoods, poverty reduction, mainstreaming marginalised groups, and the promotion of appropriate technology and inputs.