1. AGRICULTURAL FINANCE
(Meaning, Scope and Significances, Credit
needs and its role in Indian agriculture)
Presented by
B. Chandana 101A-18
Prasenjit debbarma 18A-17
Forever dkhar 24A-17
2. MEANING
๏ต An economic study of borrowing funds by farmers, the
organization and operation of farm lending agencies and of
societyโs interest in credit for agriculture. Murray (1953)
๏ต It is studying, examining and analyzing the financial
aspects related to farm business.
๏ต financial aspects includes money matters relating to
production of agricultural products and their disposal.
3. SCOPE
Micro finance
๏ต Financing of agriculture at
individual level
๏ต Financial management of the
individual farm business units
๏ต Gives us an idea about how an
individual farmer obtains and
utilizes his credit
Macro finance
๏ต Financing of agriculture at
aggregate level
๏ต total credit needs of the
agricultural sector
๏ต Focuses on use of total credit
for the development of
agriculture
4. SIGNIFICANCES
๏ต Agro โ Socio โEconomic development of the country both
at macro and micro level
๏ต Strengthening the farm business
๏ต Increasing the productivity of scarce resources
๏ต Increase the agricultural productivity by new
technological inputs purchased through farm finance
๏ต Reduce the regional economic imbalances
๏ต Reduce interโfarm asset and wealth variations
๏ต Provides large scale financial investment for the
accretion of farm assets and infrastructure
5. CREDIT
๏ต Credit is certain amount of money provided for
certain purpose on certain conditions with some
interest, which can be repaid sooner or later.
๏ต Comes from a Latin word โCredoโ which means โI
Believeโ
๏ต Credit is other wise called as loan.
๏ต Temporary transfer of asset from one who has to
other who has not (Galbraith)
6. CREDIT NEEDS
PURCHASE OF NEW INPUTS
PURCHASE OF IMPLEMENTS
BETTER MANAGEMENT OF RISKS
PERMANENT IMPROVEMENT IN LANDS
BETTER MARKETING OF PRODUCTS
HELPS TO FACE CRISIS SITUATION
PAYMENT OF ANCESTORS DEBT
PURCHASE OF FARM ANIMALS
TO SATISFY PERSONAL CONSUMPTION EXPENDITURE OF FARM FAMILY
7. Roles in Indian agriculture
Counter balances Low Income of the farmers
Management of Uncertain Income
Supports Increase in Expenditure of farmer
Typical Production Pattern
Solves the problem of inability to raise funds through other
Supports Diversification and commercialisation of agriculture
