AN OVERVIEW OF AGRICULTURAL FINANCE IN INDIA
Keywords:
policy reforms, income fluctuations, capital requirements, financial sustainability, rural development.Abstract
This study provides a comprehensive analysis of agricultural finance in India,
highlighting its vital role in improving productivity and ensuring the sustainability of the
agricultural sector. Using secondary data from credible sources, the research identifies key
challenges such as unpredictable risks, limited farmer cooperation, and the small scale of
farming operations [1]. It also examines the diverse credit needs of farmers, ranging from
short-term to long-term loans, and the dual role of institutional and non-institutional sources
in addressing these needs. While institutional sources like cooperative societies and banks
have made significant strides in providing financial support, non-institutional sources, such
as moneylenders, remain essential, particularly in areas with limited institutional access. The
study emphasizes the importance of a balanced approach that combines institutional
frameworks with the adaptability of non-institutional sources [9]. It also calls for policies
focused on improving financial literacy, simplifying credit access, and ensuring equitable
resource distribution to enhance agricultural finance in India.
