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FOOD PROCESSING

Access to Institutional Credit in Rainfed Areas-District Level Analysis

Taking Rural India >> Forward


BackgroundPaper is a part of a larger study planned to research on credit issues in rainfed agricultureCovers 70 districts from 4 Southern statesThe study is distinct in atleast two respects:It cover 2006-07 data whereas we have only SAS,NSSO, 2001-02 Preceded by Doubling of Agri. Credit programmeWe examined credit flow among two categories of districts- Rainfed and Non Rainfed


Major FindingsCredit Penetration RatioThe access improved by 2006-07-All India

Year1981-821996-972006-07All India23%13.40%25.0%


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% OH availing institutional credit


Major Findings Contd..2. % borrowing HouseholdsParticularsState/year1996-972006-071Andhra Pradesh24.7074.902Telangana26.20833Karnataka26354Tamil Nadu15.6012.40


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Major Findings Contd..3. Increase in % borrowing- RF vs. NRF

District Type1996-972006-07RemarksRF2037Good Access

&

Gap NarrowedNRF2844Overall2340


Major Findings Contd..B. Per hectare credit

Particulars1996-972006-07GrowthRF107478397.3 timesNRF2312113554.9 times 5 K049.27%28.5*



Credit obtained per hectare(Rs)



C. Percentage Term LoanS. No.Particulars199620061RF28422NRF15273Overall23.236.5a. 0 % Term loanRF177.6NRF2512.5b. >40 % Term loanRF3546NRF1839



Share of Term Loan



Distribution of Districts-Share of Term Loans



How this data is different?



ConclusionsAccess to credit deteriorated till 1996-97 & again improved by 2006-07.Penetration of institutional borrowing lower in RF districts.Gap between RF and NRF districts declined.Overall, credit/ha improved almost 6 times.Growth of 7.3 times in RF and 4.9 times in NRFAmount of credit higher in NRFShare of TL improved and was higher in RF districts





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satyasai presentation

Economy & Finance