AGRICULTURAL CREDIT TO THE FARMERS IN ANDHRA PRADESH: AN ECONOMIC ANALYSIS OF EXTENT AND MAGNITUDE IN VISAKHAPATNAM DISTRICT

S. AMRUTHA¹, I.V.Y. RAMA RAO²*
¹Principal, Rishi Agricultural Polytechnic, Narsipatnam, Visakhapatnam, Acharya N. G. Ranga Agricultural University, Lam, Guntur, 522034, Andhra Pradesh, India
²Senior Scientist (Agricultural Economics), Regional Agricultural Research Station, Anakapalle, Visakhapatnam, 531 001, Acharya N. G. Ranga Agricultural University, Lam, Guntur, 522034, Andhra Pradesh, India
* Corresponding Author : ramaraoeconomist@gmail.com

Received : 31-10-2019     Accepted : 27-11-2019     Published : 30-11-2019
Volume : 11     Issue : 22       Pages : 9205 - 9208
Int J Agr Sci 11.22 (2019):9205-9208

Keywords : Indebtedness, Agricultural credit, Commercial banks, Co-operative banks and Visakhapatnam
Academic Editor : Dr Vijayachandra Reddy S, Pushpendra Singh, Dr Prakash Chand Yadav
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Acharya N.G. Ranga Agricultural University, Lam, Guntur, 522034, Andhra Pradesh, India
Author Contribution : All authors equally contributed

The problem of indebtedness is age-old and the disheartening aspect is; it has been aggravated further in the recent years. Borrowings and indebtedness are the two sides of the same coin, while borrowing is the cause, indebtedness is the result. Increase in borrowings need not increase the indebtedness, unless persistent problems affect the agricultural prospects. The present study was carried-out with specific objectives; assessing the extent and magnitude of agricultural credit, estimating the composition of agricultural credit, calculating the targets and achievement of agricultural credit and suggesting possible ameliorative measures. Secondary data for the period 2013-14 to 2017-18 pertaining to total agricultural credit advanced, credit targets and achievements by the major financial institutions in the district were collected from Debt and investment survey reports of RBI etc. Tabular analysis viz., Averages and Percentages, were used to analyse the data. Results reveal that, Credit supply by institutional agencies to total agriculture had increased from 2013-14 to 2016-17. In crop loans and agricultural term loans; the share of commercial banks and co-operative banks were increased, whereas, other banks decreased from 2013-14 to 2016-17. Majority of banks nearly (>90%) had achieved their targets in plain areas; whereas, they are still struggling to achieve their targets in tribal and hill areas. The role of cooperative sector vis-à-vis commercial sector is low; this needs immediate strengthening of co-operative institutions on war-footing. The cumbersome procedure for availing loans from institutional sources should be simplified and further adequate loans should be provided at affordable rates of interest.

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