The Flow Of Agricultural Credit Essay

Singh & Nasir (2003) have analyzed the flow of agricultural credit in Bihar to identify of factors influencing agricultural credit flow in the state. Their study was based on district-wise secondary data from 1980-81 to 1996-97 and to identify variables influencing agricultural credit flow, they applied regression analysis and the techniques of deflation index, diversification index and infrastructure development index and found that the disbursement of agricultural loans has increased during the 17 years period but it could not achieve a continuous increase at 1980-81 prices and the decline in the quantum of agricultural credit accompanied with an increase in input price had made the quantum of agricultural credit inadequate in Bihar, particularly during the early 1990s. As far as agency-wise credit flows are concerned, the co-operatives had an edge over commercial banks in 1980-81 (early eighties) but it has been replaced by commercial banks during the mid-1980s. They also found that the per hectare agricultural credit flow in Bihar has been inadequate and the adoption of HYV seeds or modern crop production technologies, fertilizer consumption and expansion of the network of rural institutions (bank branches) had positive influence on agricultural credit flow. Sriram and Kumar (2007) have indicated that it is difficult to find external explanation and macro-economic or demographic reasons for the emergence of micro-finance in certain regions as…