AGRICULTURAL LENDING IN INDIA – TRENDS, ISSUES AND STRATEGIES
Agriculture plays an important role in Indian Economy. Agricultural sector, an important component of Priority Sector Lending (PSL). For a country to be called as a prosperous country, the base is to what extent the country is strong in its growth under Agriculture. India is struggling to achieve the growth rate of 4% under Agriculture despite various initiatives taken by Government of India (GOI), National Bank for Agriculture and Rural Development (NABARD), Reserve Bank of India and various other stake holders. Role of Indian Banks in providing technical and financial support to the farmers play a crucial role in various aspects of indicators which decides growth under Agriculture. Understanding well that nearly 80% of the farmers in India are coming under the purview of small and marginal farmer category, RBI fixed 8% of Adjusted Net Bank Credit (ANBC) as bench mark in the latest priority sector guidelines. No doubt that financing of agriculture by the commercial banks brought a change in economy of the farmers, yet financing to agriculture sector is not free from some issues and inconveniences. So this paper is an attempt to study and discuss the trends of agricultural lending in India, Issues and strategies to be adopted in near future for betterment of country’s development in various aspects of meeting demand and supply factors.
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