Role of Institutional Credit for Agricultural Development in Bihar
Naturally endowed with fertile soil, adequate rainfall, rich water resources and congenial climate, Bihar is poised for high farm productivity to lead the second green revolution in the country. Realising its importance, Government of Bihar adopted planned approach of agriculture development through Agriculture Road Maps since 2008. It aims to increase production and productivity of food crops in a cost-effective manner and make it a viable means of livelihood. The approach has put considerable emphasis on ensuring availability of certified seeds at subsidised rate, creating storage space, promoting bio-farming, farm mechanisation and new technique of System of Rice Intensification (SRI) cultivation.
Although, institutional credit assumes utmost importance in increasing agricultural productivity, the role of formal credit delivery system in the State of Bihar has not been quite encouraging. The Credit Deposit (CD) ratio in Bihar stood at 44.03 per cent as in March 2015 against the national average of 78 per cent. The State Annual Credit Plan (ACP) target of â‚¹0.74 lakh crore (including Non-priority Sector) and target of agriculture and allied activities at â‚¹0.36 lakh crore for 2014-15 works out to less than â‚¹6800 per capita credit.
Given the high credit elasticity of 0.574 in Bihar's agriculture, there is an urgent need to strengthen the institutional credit delivery system by encouraging all banks, particularly commercial banks, to play their role in the right earnest to secure agricultural prosperity in the State. The way forward in this regard is suggested in the paper.
How to Cite
Bhalla, G.S. and Gurmail Singh (2010), â€œGrowth of Indian Agriculture: A District Level Studyâ€, Planning Commission, Government of India. Available at http://planningcommission.nic.in/ reports/sereport/ser/ser_gia2604.pdf.
Government of Bihar (2015), â€œEconomic Survey 2014-15â€, Finance Department, Patna http:// finance.bih.nic.in/Documents/Reports/Economic-Survey-2015-EN.pdf.
Government of India, â€œAgriculture Census 2010-11, State-wise Number and Area of Operational Holdings for All Social Groups and Marginal Size Groupsâ€, Ministry of Agriculture and Cooperation, http://agcensus.nic.in/document/agcensus2010/agcen2010rep.htm
Government of India (2008), â€œBiharâ€™s Agriculture Development: Opportunities & Challenges - A Report of the Special Task force on Biharâ€, http://planningcommission.gov.in/aboutus/taskforce/ tsk_adoc.pdf
Government of India (2013), â€œTwelfth Five Year Plan (2012â€“2017)â€, Economic Sectors, Volume II, Planning Commission, SAGE Publications India Pvt Ltd, New Delhi, www.sagepub.in (Table 12 & 13).
Gulati, Ashok, (2013), â€œ3rd Crop Summit in Biharâ€, Sept. 2013, Reported in Economic Times, http:// articles.economictimes.indiatimes.com/2013-09-17/news/42148746_1_farmers-crop-productionminimumsupport-price
Government of India (2014), â€œHandbook of Horticultureâ€.
NABARD (2015), â€œProductivity of Agriculture Credit in India - Assessing the Recent Role of Institutional Credit to Agriculture in India Using State level Dataâ€, Mumbai.
RBI (2008), Circular on Simplification of Lending Procedures for Crop Loans, RBI/ 2008-09/ 140. RPCD.PLFS. BC. No. 22 /05.04.02/ 2008-09 dated 26 August 2008.
Reserve Bank of India (2014), â€œState-wise Outstanding Credit of Scheduled Commercial Banks According to Place of Sanction and Utilisation, March 2014, Table1.7, https://rbidocs.rbi.org.in/rdocs/ Publications/PDFs/107T9698DE69B4D043FF9D583FE4322DEBF0.PDF
Sen, S R (1984), â€œDr. Sen Committee on Agriculture Production in Eastern Indiaâ€.
State Level Bankers Committee, Bihar, 2013, Agenda and Minutes of 45th SLBC Meeting, http:// slbcbihar.com/
State Level Bankers Committee, Bihar, 2014, Agenda and Minutes of 48th SLBC Meeting, http:// slbcbihar.com/
State Level Bankers Committee, Bihar, 2015, Agenda and Minutes of 52nd SLBC Meeting, http:// slbcbihar.com/
State Level Bankers Committee, Odisha, As on 12 July 2015, http://www.slbcorissa.com/BNS.html State Level Bankers Committee, West Bengal, As on 12 July 2015 http://www.slbcbengal.com/ ImplementationAnnualCreditPlan.asp