Paper Key : IRJ************696
Author: Dr. Ajad Singh,Dr. Ghanshyam Bairwa,Dr. Amrendra Kumar Singh
Date Published: 01 Nov 2024
Abstract
This study investigates the evolving credit patterns among farmers in West Bengal between 2002-03 and 2018-19, with a specific focus on the distribution of institutional and non-institutional loan sources. Drawing on data from the National Sample Survey Office (NSSO) 59th Round (2002-03) and 77th Round (2018-19), the research aims to analyze the relationship between farmersincome growth and access to credit, evaluate the shift in loan sources across landholding categories, and examine trends in interest rates and loan shares. Findings reveal a notable increase in farmersreliance on institutional loans, particularly from banks, as the share of institutional credit rose from 58.0% to 78.5% over the study period. Meanwhile, non-institutional loans, particularly from traders and moneylenders, showed a sharp decline. The study also highlights significant reductions in interest rates for both institutional and non-institutional loans, with banks becoming the dominant source of credit, offering lower interest rates compared to 2002-03. Marginal and small farmers, however, continue to face challenges in accessing large loan amounts, despite improvements in institutional credit availability. This study contributes to the understanding of rural credit dynamics and offers insights for policymakers to enhance access to affordable credit for all landholding categories in West Bengal.
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