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In agri-credit, small farmers are still outside the fence


Updated:
January 25, 2021 00:56 IST
The agriculture sector’s performance has not been commensurate with the increasing subsidised credit it receives
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The agriculture sector’s performance has not been commensurate with the increasing subsidised credit it receives
Farmers on the warpath would mean that agriculture reforms have again occupied centrestage not just in the minds of the politicians but also policymakers. To enable small farmers to diversify their crops or improve their income they must have access to credit at reasonable rates of interest. This has been an agenda of the triad of the Centre, the States and the Reserve Bank of India (RBI) for decades. Unfortunately, while the volume of credit has improved over the decades, its quality and impact on agriculture has only deteriorated. Agricultural credit has become less efficient in delivering agricultural growth. Otherwise, why should over 85% of farmers’ income remain stagna ....

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