Vol. 3, Issue 3 (2016)
Measurement of Credit Constraint to Farming Households: A Case Study of Jaipur and Rajsamand Districts in Rajasthan (An Empirical Analysis)
Author(s): Mr. Jitender Kumar, Prof. M.S. Bhatt, Dr. Showkat Ahmad Bhat
Abstract: Agricultural credit is considered a critical input for agricultural development. Keeping in view the importance of agricultural credit in India, government constituted different committees from time to time for suggesting ways and means to increase the credit accessibility to farmers. Following from their recommendations number of policy instruments were put in place to ensure effective and inclusive access to bank credit. These polices have indeed yielded dividends but failures of equitable access to credit are disquieting. Indian agriculture is the source of livelihood of more than 90% of small & marginal farmers. These farmers do not have enough source of money to make adequate investment during production cycle. These farmers face constraints in accessing the credit from banks. Thus, in this paper an attempt has been made to identify the problems and constraints faced by the farmers in Jaipur and Rajsamand districts of Rajasthan in accessing agriculture credit from commercial banks. Multi stage random sampling has been used to collect the sample from both the districts. The result revealed that the farmers are facing constraints in accessing credit from banks. The factors that determine the accessibility of credit are: Age, Age 2, Sex, Education, HH Size, Livestock, HH Assets, Interest Rate, Complicated Procedure, Membership of Cooperatives and Distance from the Bank. The Study suggested that, there is need to increase the flow of credit by removing all constraints, both macro and micro, in accessing credit.