its have all accept that how farmer can get credit

2. Agricultural Credit
Market
Presented By:
Adnan Khalil

3. Credit
According to samuelson,
“Credit is the use of someone else’s funds in
exchange for a promise to pay with or without interest at a later date”

4. Definition of agriculture credit
“Farm Credit or Agriculture Credit is the count of loan or credit
obtained form any source for the promotion and development of
Agriculture”.

5. Objectives
Accelerating the national economic growth by increasing the rate of
growth of agriculture, an important subsector of agriculture economy.
Reduction the unemployment by creating job opportunities.
Increasing Pakistan’s foreign exchange earning by increasing quantity,
quality and variety of Agriculture exports.

6. Ensuring food security and nutritional balance of the people’s food intake
by providing them protein rich agricultural product in their food.
Improving the condition and status of women by providing them
opportunities to own resources.

7. Sources of Agricultural credit market
This can be divided into two categories:
Institutional sources
Non-institutional sources.

8. Institutional sources
Zarai Taraqiati Bank Limited ( 1961, only for agri credit, low interest)
Cooperatives banks
Commercial Banks and rural Banks ( More formalities, High interest)
NGO’s

10. Non-Institutional sources
Moneylenders
Relatives
Traders
Commission agents
Landlords

11. Agricultural credit marketing needs of the
farmers
Agricultural credit marketing needs of the farmers can be examined from two
different angles
On the basis of time
On the basis of purpose.

12. On the Basis of Time
The needs of the farmers can be classified into three categories on the basis
of time:
Short term loan
Medium term loan
Long term loan

13. Short-term loans
Short-term loans are required for the purchase of seeds, fertilizers,
pesticides, feeds on fodder of livestock, marketing of agricultural produce,
payment of wages of hired labour are classified according to the use and
kind of application as insecticides, fungicides, herbicides and other
pesticides. Such loans are normally taken from Non-institutional sources.

14. Medium-term loans
Medium-term loans are obtained for the purchase of cattle, small agricultural
implements, repair and construction of wells etc. The period of such loans
extends from 15 months to 5 years. These loans are generally provided by
money-lenders, relatives of farmers, cooperative societies and commercial
banks.

15. Long-term loans
Long-term loans are required for effecting permanent improvement on land,
digging tube wells, purchase of larger agriculture implements and machinery
like tractors, harvesters etc. and repayment; of old debts. The period of such
loans extends beyond; 5 years. Such loans are normally taken from Banks.

16. On the Basis of Purpose
Agricultural credit market needs of the farmers can be classified on the basis
of purpose into the following categories:
Productive loans
Unproductive loans
Consumption needs

17. Productive loans
Under productive needs we can include all credit requirements which
directly affect agricultural productivity. Farmers need loans for the purchase
of seeds, fertilizers, manures, agricultural implements, livestock, digging and
repair of wells and tube wells, payment of wage, effecting permanent
improvements on land, marketing of agricultural produce, etc.

18. Consumption needs
Farmers often require loans for consumption as well as Institutional credit
agencies do not provide loan for consumption purpose. Therefore farmers
stretch their hand towards the moneylenders.

19. Unproductive loans
Loans are taken for unproductive purposes such as litigation, marriages,
social ceremonies on birth and death of a family member, religious
functions, festivals etc. Farmers take loans from non-institution source since
institutional credit agencies do not give such loans.

20. Efficiency for Agriculture credit market
Increasing farmers access to credit.
Low interest rate
Targeting Credit Access
Short procedure for credit
Farmer awareness to Agriculture credit