GROUND REALITIES OF AGRICULTURE CREDIT - SERIOUS CONCERNS
GROUND REALITIES OF AGRICULTURE CREDIT - SERIOUS CONCERNS Role of credit in farming systems: Credit plays very vital role in farmer’s crop production systems. In fact, farmers decide what to grow, seeds & other inputs, choice of the crop etc depending on the scale of finance available. Despite best possible efforts by successive governments in reaching out to the farmers with formal credit systems, the reach is still limited due to severe lacuna in the operational strategy. Micro finance which emerged as an alternative credit to reach farmers in remote areas, addressing the procedural hurdles in formal credit banking institutions, met with very limited success due to high interest rates charged by these institutions and unfortunately they emerged as legalised money lenders. The seed & input supply shops are another avenue for crop loans, again with high interest rate. Other than the interest, the farmer is bound to buy whatever brand of seed or inputs that pa