Agricultural Finance in Kerala: Trends, Challenges and Policy Implications in a Post-Liberalised Period
Author(s): Joji Jacob
Publication #: 2511009
Date of Publication: 08.11.2016
Country: India
Pages: 1-10
Published In: Volume 2 Issue 6 November-2016
Abstract
To address the issue of how far agricultural finance has evolved in Kerala over the past 25 years (1991–2016), this study investigates the institutional credit flows, the disbursement patterns and the roles of the various financial institutions which support the agricultural sector of the state. Based on secondary data from the Reserve Bank of India, NABARD, and Government of Kerala sources, it follows a path of transformation of agricultural credit mechanisms in the post-liberalisation era. The results show an uptick in the disbursement of credit, with cooperative banks and regional rural banks emerging as major players, but concerns remain about credit intensity and access for farmers. The present study exemplifies the specific difficulties confronted by the agricultural finance system in Kerala, namely small landholdings, declining cultivable areas, and the predominance of plantation crops. The article ends with policy recommendations on building institutional credit delivery mechanisms and promoting financial inclusion in agriculture.
Keywords: Agricultural credit, Kerala agriculture, institutional finance, cooperatives, rural banking, credit disbursement.
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