Role of Co-Operative Banks in Agriculture Credit: Organization, Growth and Challenges
Role of Co-operative Banks in Agriculture Credit: Organization, Growth and Challenges Rajesh Kumar, Sanjay Malhan
Abstract
In this study we have analysed the role of Co-operative banks in agriculture credit in India from 2001/2002 to 2006/2007 with the help of ACGR. The study reveals that the aggregate amount of agriculture credit has increased, while, the share in total institutional agriculture credit has been decreased from 37.91 in 2001/2002 to 18.51 in 2006/07 and further, found that the level of NPAs in Co-operative banks is very high as compare to other financial institutions in India. So, co-operatives banks should control their NPAs level for surviving in credit market of India in future.
Key Words: Co-operatives, Agriculture credit, NPAs
Introduction
Agriculture is the mainstay of the Indian economy. According to NSSO round 2001, 54.3 per cent workforce has been depends on agriculture, out of these, 50.3 percent depends on crop production and left 4 percent on livestock production for their livelihood. Agriculture and allied sectors contribute nearly 22 per cent in Gross Domestic Product (GDP) of India and further 9.93 per cent contribution in total export of India (Economic Survey of India: 2006). Agriculture sector plays a vital role in Indian economy through providing livelihood opportunity and export earnings. Agriculture is the most important sector of the Indian economy from the perspective of poverty alleviation, and employment generation. When any change in the agriculture sector-‘Positive or Negative’- has multiplier effect on the entire economy. At presently agriculture are facing much difficulties such as irrigation, HYVs, marketing of agriculture products, advanced technique of farming, fertilizer, credit and other capital equipment etc. Credit is the major factor all of them that affecting the agriculture development. The low productivity of land, heavy dependence on usurious money lender and high level of indebtedness were seem as the main
Abstract
In this study we have analysed the role of Co-operative banks in agriculture credit in India from 2001/2002 to 2006/2007 with the help of ACGR. The study reveals that the aggregate amount of agriculture credit has increased, while, the share in total institutional agriculture credit has been decreased from 37.91 in 2001/2002 to 18.51 in 2006/07 and further, found that the level of NPAs in Co-operative banks is very high as compare to other financial institutions in India. So, co-operatives banks should control their NPAs level for surviving in credit market of India in future.
Key Words: Co-operatives, Agriculture credit, NPAs
Introduction
Agriculture is the mainstay of the Indian economy. According to NSSO round 2001, 54.3 per cent workforce has been depends on agriculture, out of these, 50.3 percent depends on crop production and left 4 percent on livestock production for their livelihood. Agriculture and allied sectors contribute nearly 22 per cent in Gross Domestic Product (GDP) of India and further 9.93 per cent contribution in total export of India (Economic Survey of India: 2006). Agriculture sector plays a vital role in Indian economy through providing livelihood opportunity and export earnings. Agriculture is the most important sector of the Indian economy from the perspective of poverty alleviation, and employment generation. When any change in the agriculture sector-‘Positive or Negative’- has multiplier effect on the entire economy. At presently agriculture are facing much difficulties such as irrigation, HYVs, marketing of agriculture products, advanced technique of farming, fertilizer, credit and other capital equipment etc. Credit is the major factor all of them that affecting the agriculture development. The low productivity of land, heavy dependence on usurious money lender and high level of indebtedness were seem as the main
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