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Resource centre on India's rural distress
 
 

Give farmers their due credit -Ashok Gulati & Ritika Juneja

-The Indian Express

All crop loans should be routed through Kisan Credit Cards. This will ensure that farmers do not use the loans for non-agricultural purposes.

Normally, a sector’s credit off-take is a sign of its health. Higher the off-take, the better the sector’s performance. There has been a healthy off-take of ground-level credit (GLC) in agriculture and allied sectors. In the financial year (FY) 2018-19, banks disbursed Rs 12.55 trillion as GLC to agriculture, surpassing the government’s target of Rs 11 trillion. This should be cause for celebration but, unfortunately, the agriculture sector’s performance has not been commensurate with the credit that it has received. What has gone wrong? Let us go into some lesser-known facts about agri-credit in India to answer this question.

Please click here to read more.