Indian Agriculture: Credit, Green Revolution and Subsidies

NABARD (National Bank for Agriculture and Rural Development) is the apex regulatory body and development bank for agricultural credit in India.

The traditional sources of agricultural credit termed as non-institutional sources.In
order to fulfill the financial requirements of the agricultural sector
in
rural India, appropriate and specialized credit agencies are needed.
Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

Credit available for a period of 15 months to 5 years is termed as medium term credit.In
order to fulfill the financial requirements of the agricultural sector
in
rural India, appropriate and specialized credit agencies are needed.
Credit helped to increase the productive capacity.

Finance used to purchase seeds, fertilizers, pesticides and related agricultural tools and credit taken for the purpose of permanently enhancing the productivity of land are known as productive credit.

In March, 2014 there were over 93000 'primary agricultural credit societies' (PACS) covering 98% of villages in India.
PACS provides institutional credit which assists rural households involved in agricultural activities.Credit helps to increase the productive capacity of the economy.

Non-institutional sources of rural credit still performs a vital role in providing credit for unproductive purposes.The traditional sources of agricultural credit termed as non-institutional sources.Non-institutional credit providers charge exorbitant interest rates ranging between 24% to 50%.In
order to fulfill the financial requirements of the agricultural sector
in
rural India, appropriate and specialized credit agencies are needed.
Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

The traditional sources of agricultural credit termed as non-institutional sources.Non-institutional credit providers charge exorbitant interest rates ranging between 24% to 50%.In
order to fulfill the financial requirements of the agricultural sector
in
rural India, appropriate and specialized credit agencies are needed.
Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

Co-operative banks have a  3-tier structure.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

In 1950-51, the formal banking sector was underdeveloped in rural areas, leaving farmers heavily dependent on informal sources like moneylenders for credit.

Cooperative banks are designed to serve rural needs by providing both short-term and medium-term loans to farmers for various agricultural activities.

Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities. Land Development Banks (LDBs) have a 2-tier structure.Land Development Banks (LDBs) have been effectively established in India since 1929.

State Cooperative Banks operate in each state at the apex level.State Cooperative Banks provides
institutional credit which assists rural households involved in
agricultural activities.Credit helps to increase the productive capacity
of the economy.

Cooperatives have not made much progress in tribal and hilly areas- this is a true statement.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Primary Land Development Banks operate at the district level.Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

Issue of bonds and debentures is the major source of funds for Land Development Banks (LDBs).Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

Central Land Development Banks operate at the state level.Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

Land Development Banks (LDBs) have a 2-tier structure.Land Development Banks (LDBs) have been effectively established in India since 1929.Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

Land Development Banks (LDBs) have been effectively established in India since 1929.Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

70% of loans advanced by cooperative societies have been dispersed in 8 states.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

The number of primary land development banks stood at 714  as of Mar., 2013.Primary Land Development Banks operate at the district level.Land
Development Banks (LDBs) are also called as Land Mortgage Banks and
Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities.

Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land
Development Banks- co-operative credit institution provides long-term
loans. It provide loans generally more than one year. It provides
institutional credit which assist in agricultural developmental
activities. Land Development Banks (LDBs) have a 2-tier structure.Land Development Banks (LDBs) have been effectively established in India since 1929.

A large part of cooperative credit is dispersed to  large and rich farmers.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Cooperative societies have not been facing problems with regards to recovery of loans and advances- this is a false statement since cooperative societies have been facing problems with regards to recovery of loans and advances.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Rural credit provided by cooperative societies suffers from the problem of undue delays- this is a true statement.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Men have been migrating to urban locations in search of better employment avenues leaving the farm responsibilities on women the Survey has suggested the Government for 'gender-specific farm interventions' to support the farm sector.

At present (2017-18, Provisional) India's agri-exports are at US$ 30 billion while its potential is of US$ 100 billion. The scheme Operation Greens is aimed at promoting food processing facilities also together with agri-logistics and professional management of the agri-goods. 

Historical data on agricultural credit distribution in India indicates that southern states have consistently accounted for a significant portion of the total credit disbursed.

Agricultural loan defaults in India have historically been a significant issue, with estimates often cited around 40% in various economic reports.

Due to factors like lack of bargaining power, dependence on middlemen, and lack of storage facilities, Indian farmers often receive low prices for their produce.

Studies on agricultural credit in India have shown that large and medium farmers have historically been the primary beneficiaries due to better collateral and access to formal banking.

The share of cooperative credit institutions in the total institutional credit shifted from 44% in 1990-91 to 16% in 2014-15Cooperative credit institutions have covered only 65% of the rural population.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

By this, the government intends to check the expanding value of fertilizers subsidiessubsidies still go to the manufacturers and importers.

Use of bio-tech is optional and not obligatory to make farming 'green'. But in the case of India it looks better to use it as part of the second green revolution as it can be handy in the development of so many suitable inputs which may increase production and cut prices of the agriculture products.

Fertilizers subsidy still goes to the manufacturers/importers but since it has been put on the value of 'nutrients' available in them the government has been able to cut down the cost of fertilizers subsidies. Statement-2 is correct. 

Indian green revolution gave major focus on increasing the production of wheat rice, maize, jowar. In the first phase major increase the productivity of wheat were sown and during the second phase rice saw an increase. 

When it started the focus of the Green Revolution was to be kept on crops like Wheat, Rice, Maize, Jowar. But during the actual implementation and result the main growth has been in the crop of Wheat. 

In the first phase of green revolution the production of wheat increased majorly. The impact of the green revolution was evidently seen in the northern states like Hariyana, Punjab, which created the regional inequalities. The richer farmers got the advantage creating inter personal inequalities.

Green Revolution refers to the revolution brought about in Indian agriculture in 1966 with the help of improved varieties of seeds (HYV), better manure and irrigation and more up to date methods of farming in form of technological upgradation.

Subsidies do not disturb the pattern of consumption there is no relation between subsidies and consumption.

To encourage the adoption of High Yielding Variety (HYV) seeds, the government provided institutional support, primarily through bank loans to help farmers purchase necessary inputs.

The Kisan Credit Card (KCC) Scheme, introduced in 1998-99, has made rapid progress with the banking system. The scheme has helped in augmenting the flow of short-term crop loans for seasonal agricultural operations to farmers. Besides the existing facilities of providing crop loan, the scope of KCC Scheme has been enlarged to include term loans for agriculture and allied activities along with a component to meet the consumption needs.

During the Green Revolution, the government's strategy favored farmers with large land holdings who could afford the necessary inputs like fertilizers and irrigation, which were required to make HYV seeds successful.

The government's role in the Green Revolution was comprehensive, involving the provision of equipment, irrigation infrastructure, and policy support to ensure the successful adoption of HYV seeds.

Subsidies in India are typically provided for essential inputs like fertilizers, food, and petroleum to support consumers or producers. Coal factories are generally commercial entities that do not receive direct government subsidies in the same manner as essential public goods.

Agricultural subsidies are provided to address multiple challenges faced by farmers, including low income, low productivity (yield), and the high cost of modern equipment. These interventions aim to ensure food security and support rural livelihoods.

The Green Revolution in India focused primarily on high-yielding varieties of seeds, particularly wheat and rice, which are the main cereals. This significantly increased food grain production.

The Green Revolution is often referred to as the Wheat Revolution because the most dramatic increases in yield and production were observed in wheat crops during the initial phase.

Due to the success of the Green Revolution and subsequent agricultural advancements, the total food grain production increased significantly, leading to an improvement in per capita availability over the years.

The Green Revolution in India is widely recognized as having started in the 1967-68 crop year, focusing on high-yielding varieties of wheat and rice.

The Green Revolution in India is historically associated with the mid-1960s, specifically beginning around 1966, to combat food shortages.

The core of the new agricultural strategy (Green Revolution) was the use of High Yielding Variety (HYV) seeds combined with chemical fertilizers and irrigation to maximize crop output.

Green revolution was started in the year of 1966 with a significant break in the production of two main food grains, Rice and wheat. 

The main aim of Green Revolution was to maintain a high level of agricultural production over a long period of time with efficient use of resources.

Green revolution was started in the year of 1967 with a significant break in the production of two main food grains, Rice and wheat. 

On 1st January 1965, Agricultural Price Commission was set up which later rechristened as Commission for Agricultural Costs and Prices (CACP) to advice the Government from time to time on appropriate price policies for agricultural commodities so all different consumers groups can be protected from price distrimination in the market.

Green revolution was started in the year of 1966 with a significant break in the production of two main food grains, Rice and wheat. 

The main aim of Green Revolution was to maintain a high level of agricultural production over a long period of time with efficient use of resources which refers to sustainable improvement in agriculture. 

Substantial Improvement in Agricultural Productivity was achieved through Green Revolution. It was commenced from 1966. The father of Green Revolution was M.S Swaminathan. The introduction of HYV seeds and increased use of fertilizers, pesticides and irrigation- collectively known as Green Revolution.

Green Revolution commenced in the year 1966.Substantial Improvement in
Agricultural Productivity was achieved through Green Revolution. The father of Green Revolution was M.S Swaminathan.
The introduction of HYV seeds and increased use of fertilizers,
pesticides and irrigation- collectively known as Green Revolution.

Significant breakthrough by way of productivity increase under Green Revolution was achieved in wheat.Green Revolution commenced in the year 1966.Substantial Improvement in
Agricultural Productivity was achieved through Green Revolution. The father of Green Revolution was M.S Swaminathan.
The introduction of HYV seeds and increased use of fertilizers,
pesticides and irrigation- collectively known as Green Revolution.

Before the Green Revolution, India relied on food imports (like PL-480 from the US). After the success of the Green Revolution, India achieved self-sufficiency and eventually became a net exporter of food grains.

Green Revolution commenced in the year 1966.Substantial Improvement in
Agricultural Productivity was achieved through Green Revolution. The father of Green Revolution was M.S Swaminathan.
The introduction of HYV seeds and increased use of fertilizers,
pesticides and irrigation- collectively known as Green Revolution.

During
third plan, i.e., before implementation of HYVP food grain production
was 81 million tones which has increased to 241 million tonnes
2010-11.HYVP basically aimed at increasing
agricultural productivity at a large extent. It helped to ensure the
food security of the country.

The Green Revolution has led to marked increase in the regional inequalities , the productivity of wheat and the interpersonal inequalities.