Page 72 - 2022

Ph.D.
(Management)
A STUDY ON MEASURING PERFORMANCE OF THE SELECTED
AGRICULTURE CREDIT SCHEMES FOR FARMERS

Ph.D. Scholar : Patoliya Jitendrakumar Vitthalbhai
Research Supervisor : Dr. Abhishek K. Parikh

Regi. No.: 17276111012
Abstract :
According to current data, the agriculture sector's contribution to India's GDP has
decreased over time. Despite this, the agriculture sector still employs a significant part of
our population. Many people in our country are involved in this sector directly or indirectly
to maintain their livelihood. A considerable amount of the agriculture sector in India has
been dependent on rain for irrigation purposes. However, due to uncertainty and
irregularity of rain falling and geographical adversity, there is no proper mechanism to
estimate farmers' crop revenue.

On the other hand, the spending on inputs must be for the whole land area under
cultivation. Hence it gives rise to the situation where there is no guarantee for revenue
generation, but expenditure for inputs cannot be avoided. The income generated from the
farming activity at a particular time has not been adequate to finance farm requirements
for inputs and equipment. The farmers need to borrow money to bridge the gap between
uncertain income and accurately estimated expenditure.

In the past, the preferred source for borrowing agriculture credit was a local moneylender
who charged a high-interest rate. As a result, the portion of agriculture credit borrowing
from informal (Unorganized and unregulated) sources was very high. Due to policy
measures are taken by India's government, the amount of borrowing from formal sources
(Organized and regulated) is surpassing informal sources. The efforts have been directed
to attract and inspire farmers to access the formal sources of finance to get agriculture
credit. To increase the spread of access to agriculture credit through the formal source of
finance government has taken many policy measures. Enhancing communication about
agriculture credit through various media

To provide accessibility of agriculture credit, the government has come with multiple
agriculture credit schemes that meet farmers' specific financial requirements. Therefore,
the following schemes have been included in the study.

1. Kisan Credit Card Scheme
2. Crop Loan

3. Interest Subvention Scheme
41