Inequalities in Flow of Agriculture Credit: A Macro and Micro Level Analysis

Abstract

This paper seeks to examine the level of inequalities in flow of agriculture credit to farmers of different farm classes and also the regional disparity prevailing in flow of agriculture credit in India. Analysis of inclusiveness of formal credit delivery reveals that there exist widespread inequality which has been studied through total credit disbursed, credit disbursed per account, KCC issued, CD ratio region wise. Some regions have emerged to be better served, with quantitatively better credit availability and others deficit. Thus apart from quantitative growth of credit, a rather more inclusive approach is inevitable so as to enable agriculture credit policy to fulfill its stated purpose.