FINANCE FOR AGRICULTURE OR AGRICULTURE FOR FINANCE

Abstract

This study explores the transformation of agricultural finance in India,
emphasizing the shift from state-led interventions to privatization and increased financial
speculation [1]. Historically, state institutions like NABARD and public sector banks played
a significant role in stabilizing agricultural markets and supporting small farmers. However,
recent reforms have reduced state involvement, enabling private financial actors to dominate,
which has benefited large-scale farming while marginalizing small producers. The rise of
commodity exchanges and speculative trading has increased risk for farmers, causing greater
price volatility and uncertainty. This speculative focus has contributed to the industrialization
of agriculture, leading to concerns over the displacement of small farmers and environmental
degradation. The growing influence of financial actors in the agricultural sector has raised
challenges for equity, food security, and long-term stability. To address these issues, the
study highlights the need for stronger financial oversight, regulatory reforms, and policies
that support small farmers [2]. A balance must be struck between financial interests and the
needs of small-scale farmers to ensure the sustainability and resilience of India's agricultural
sector. Strengthening financial regulations, promoting inclusivity, and supporting sustainable
practices are essential for protecting farmers and maintaining market stability in the face of
financial speculation.