Status of Agricultural Credit and Indebtedness in India: An Analysis

Abstract

This article attempts to analyse status of agricultural credit and indebtedness in India. The objectives of the study are as follows: (a) to study a comparison of flow of total institutional agricultural credit among different land size groups at all India level; (b) to study a comparison of indebtedness of agricultural households between different size classes of land possessed at both states and all India level and (c) to analyse incidence of indebtedness in major Indian states. It is concluded that mostly, short- and medium-term loans of agricultural purposes are taken for marginal land size groups in India. The percentage of indebted agricultural households to total agricultural household increases as land size increases. The percentage of holdings is less than percentage of indebted agricultural households in Punjab, Uttar Pradesh, Andhra Pradesh, West Bengal, Karnataka, Odisha and Rajasthan.

JEL Code: Q14