Journal of Rural Development

Open Access Open Access  Restricted Access Subscription Access

Role of Institutional Credit for Agricultural Development in Bihar


Affiliations
1 BIRD (NABARD), Lucknow, PIN-226012, India
 

   Subscribe/Renew Journal


Naturally endowed with fertile soil, adequate rainfall, rich water resources and congenial climate, Bihar is poised for high farm productivity to lead the second green revolution in the country. Realising its importance, Government of Bihar adopted planned approach of agriculture development through Agriculture Road Maps since 2008. It aims to increase production and productivity of food crops in a cost-effective manner and make it a viable means of livelihood. The approach has put considerable emphasis on ensuring availability of certified seeds at subsidised rate, creating storage space, promoting bio-farming, farm mechanisation and new technique of System of Rice Intensification (SRI) cultivation.

Although, institutional credit assumes utmost importance in increasing agricultural productivity, the role of formal credit delivery system in the State of Bihar has not been quite encouraging. The Credit Deposit (CD) ratio in Bihar stood at 44.03 per cent as in March 2015 against the national average of 78 per cent. The State Annual Credit Plan (ACP) target of ₹0.74 lakh crore (including Non-priority Sector) and target of agriculture and allied activities at ₹0.36 lakh crore for 2014-15 works out to less than ₹6800 per capita credit.

Given the high credit elasticity of 0.574 in Bihar's agriculture, there is an urgent need to strengthen the institutional credit delivery system by encouraging all banks, particularly commercial banks, to play their role in the right earnest to secure agricultural prosperity in the State. The way forward in this regard is suggested in the paper.


User
Subscription Login to verify subscription
Notifications
Font Size

  • Bhalla, G.S. and Gurmail Singh (2010), “Growth of Indian Agriculture: A District Level Study”, Planning Commission, Government of India. Available at http://planningcommission.nic.in/ reports/sereport/ser/ser_gia2604.pdf.

  • Government of Bihar (2015), “Economic Survey 2014-15”, Finance Department, Patna http:// finance.bih.nic.in/Documents/Reports/Economic-Survey-2015-EN.pdf.

  • Government of India, “Agriculture Census 2010-11, State-wise Number and Area of Operational Holdings for All Social Groups and Marginal Size Groups”, Ministry of Agriculture and Cooperation, http://agcensus.nic.in/document/agcensus2010/agcen2010rep.htm

  • Government of India (2008), “Bihar’s Agriculture Development: Opportunities & Challenges - A Report of the Special Task force on Bihar”, http://planningcommission.gov.in/aboutus/taskforce/ tsk_adoc.pdf

  • Government of India (2013), “Twelfth Five Year Plan (2012–2017)”, Economic Sectors, Volume II, Planning Commission, SAGE Publications India Pvt Ltd, New Delhi, www.sagepub.in (Table 12 & 13).

  • Gulati, Ashok, (2013), “3rd Crop Summit in Bihar”, Sept. 2013, Reported in Economic Times, http:// articles.economictimes.indiatimes.com/2013-09-17/news/42148746_1_farmers-crop-productionminimumsupport-price

  • Government of India (2014), “Handbook of Horticulture”.

  • NABARD (2015), “Productivity of Agriculture Credit in India - Assessing the Recent Role of Institutional Credit to Agriculture in India Using State level Data”, Mumbai.

  • RBI (2008), Circular on Simplification of Lending Procedures for Crop Loans, RBI/ 2008-09/ 140. RPCD.PLFS. BC. No. 22 /05.04.02/ 2008-09 dated 26 August 2008.

  • Reserve Bank of India (2014), “State-wise Outstanding Credit of Scheduled Commercial Banks According to Place of Sanction and Utilisation, March 2014, Table1.7, https://rbidocs.rbi.org.in/rdocs/ Publications/PDFs/107T9698DE69B4D043FF9D583FE4322DEBF0.PDF

  • Sen, S R (1984), “Dr. Sen Committee on Agriculture Production in Eastern India”.

  • State Level Bankers Committee, Bihar, 2013, Agenda and Minutes of 45th SLBC Meeting, http:// slbcbihar.com/

  • State Level Bankers Committee, Bihar, 2014, Agenda and Minutes of 48th SLBC Meeting, http:// slbcbihar.com/

  • State Level Bankers Committee, Bihar, 2015, Agenda and Minutes of 52nd SLBC Meeting, http:// slbcbihar.com/

  • State Level Bankers Committee, Odisha, As on 12 July 2015, http://www.slbcorissa.com/BNS.html State Level Bankers Committee, West Bengal, As on 12 July 2015 http://www.slbcbengal.com/ ImplementationAnnualCreditPlan.asp


Abstract Views: 222

PDF Views: 111




  • Role of Institutional Credit for Agricultural Development in Bihar

Abstract Views: 222  |  PDF Views: 111

Authors

Arvind Kumar Srivastava
BIRD (NABARD), Lucknow, PIN-226012, India

Abstract


Naturally endowed with fertile soil, adequate rainfall, rich water resources and congenial climate, Bihar is poised for high farm productivity to lead the second green revolution in the country. Realising its importance, Government of Bihar adopted planned approach of agriculture development through Agriculture Road Maps since 2008. It aims to increase production and productivity of food crops in a cost-effective manner and make it a viable means of livelihood. The approach has put considerable emphasis on ensuring availability of certified seeds at subsidised rate, creating storage space, promoting bio-farming, farm mechanisation and new technique of System of Rice Intensification (SRI) cultivation.

Although, institutional credit assumes utmost importance in increasing agricultural productivity, the role of formal credit delivery system in the State of Bihar has not been quite encouraging. The Credit Deposit (CD) ratio in Bihar stood at 44.03 per cent as in March 2015 against the national average of 78 per cent. The State Annual Credit Plan (ACP) target of ₹0.74 lakh crore (including Non-priority Sector) and target of agriculture and allied activities at ₹0.36 lakh crore for 2014-15 works out to less than ₹6800 per capita credit.

Given the high credit elasticity of 0.574 in Bihar's agriculture, there is an urgent need to strengthen the institutional credit delivery system by encouraging all banks, particularly commercial banks, to play their role in the right earnest to secure agricultural prosperity in the State. The way forward in this regard is suggested in the paper.


References





DOI: https://doi.org/10.25175/jrd.v36i1.141866