flow of institutional credit to agriculture and allied sectors in karnataka-an economic analysis

144 Pages·2015·2.26 MB·English

FLOW OF INSTITUTIONAL CREDIT TO
AGRICULTURE AND ALLIED SECTORS IN
KARNATAKA-AN ECONOMIC ANALYSIS

DHANANJAYA SWAMY, P. S.
PALB 2001

DEPARTMENT OF AGRICULTURAL ECONOMICS
UNIVERSITY OF AGRICULTURAL SCIENCES
GKVK, BENGALURU-65
2015
FLOW OF INSTITUTIONAL CREDIT TO
AGRICULTURE AND ALLIED SECTORS IN
KARNATAKA-AN ECONOMIC ANALYSIS

DHANANJAYA SWAMY, P. S.
PALB 2001

Thesis submitted to the
University of Agricultural Sciences, Bengaluru
in partial fulfillment of the requirements
for the award of the degree of
Doctor of Philosophy
in
AGRICULTURAL ECONOMICS

BENGALURU JULY, 2015
Affectionately dedicated to
My beloved parents
Smt Shivamma & Sri Siddappa,
Brother Mahendra Kumar, P.S.
and Sister Nagaratna, P.S.

ACKNOWLEDGEMENT
It is my pleasure to glance back and recall the path one travelled during the day
of hard work and perseverance. Interdependence is definitely more valuable than
independence. This thesis is the result of three years of work whereby I have been
accompanied, supported and guided by many people. I would thus like to thank everyone
who, knowingly or otherwise, has provided support, encouragement and assistance along
the way.
First and foremost, I express my deep sense of reverence and gratitude to
Dr. B. Chinnappa, Professor and Head, Department of Agricultural Economics, UAHS,
Navile, Shimoga and esteemed chairman of my advisory committee for his constant
encouragement, sustained interest and generous assistance at every stage of
investigation.
My sincere gratitude and heartfelt thanks to Dr. K. B. Umesh, Professor and
Head, Department of Agricultural Economics, UAS, GKVK, Bangalore, Dr. Y. S. Arun
Kumar Professor, Department of Agricultural Economics, UAS, GKVK, Bangalore,
Dr. T. N. Prakash Kammaradi, Chairman, Karnataka Agricultural Price Commission,
Govt. of Karantaka and Sri V. Manjunath, Associate Professor, Department of Agril.
Statistics, UAS, GKVK, Bangalore for their critical comments and valuable suggestions
as members of my Advisory Committee.
I gratefully record my indebtedness to Dr. B. V. Chinnappa Reddy, Professor,
Department of Agricultural Economics, UAS, GKVK, Bengaluru for his constant
encouragement and support. He contributed his vast knowledge to complete this
seemingly never ending task in a resplendent way. With immense pleasure and deep
respect, I express my heartfelt gratitude to my revered teacher, Dr. M. G. Chandrakanth,
Professor, Department of Agricultural Economics, UAS, GKVK, Bangalore for his
excellent guidance, constant support, close counsel and valuable suggestions throughout
the period of my study. I honestly confess with gratitude that it has been a rare privilege
to be under his guidance.
I indebted to all my teachers late Dr. S. Suryprakash, Dr. G. S. Ananth,
Sri P.S. Srikanta Murthy, Sri Honnaiah, Sri Mallikarjuna Swamy, Dr. Venkataramana
and Dr. G. S. Mahadevaiah, and Dr. Murutuza Khan for being the lighthouses in this
hard journey.
The love and patience of my family have been instrumental for me to achieve
anything in life. There are no words to express my feelings of adoration, love, respect and
obligation to my beloved parents, who moulded me to what I am. My beloved mother
Smt. Shivamma, father, Sri Siddappa, brother, P.S. Mahendra Kumar (My lovely
Anna), Sister, Kum. P.S. Nagarathna, grandmother, Smt. Kallamma and grandfather
Sri. Boranayaka always backed me by their love and support.
I also extend my sincere thanks to Sujatha Devi, Devaraju, Narasimha Murthy
and Hanumanthu, who has directly or indirectly helped me in completing the
programme.
I am fortunate in having many affectionable love from UG friends, Mr. Basavaraj
Bhopale, Mr. Lokanath, V., Mr Naveen, K. P., Mr. Shashikanth, V.S., Mr. Raghunath,
and Mr. Pradeep, S. D. I also have been highly fortunate to have a myriad of friends
here. I am thankful for the emotional support from my all classmates Harish Kumar, H.
V., Ms. Sravanthi Kolla, Mr. Doan Tien Huu, Mr. Naveen Kumar, P., Mr. Nagaraj and
Mr. Harshan H.S. who encouraged me in each and every step of my post graduation and
they deserve a more personal note of gratitude.
I was privileged to have a group of seniors and juniors who were always ready to
offer unconditional help when needed. I thank Mr. Promod Chandakavte,
Dr. B. R. Jamkhandi, Ms. Roopa, Mr. Ramesh, G. B., Mr. Raghavendra, D. V.,
Mr. Raghavendra, T. M., Mr. Mahadev Reddy. Mr. Guruprasad,
Mr. Chikkathimmegowda, Mr. Mallikarjun, Mr. Madhu, Mr. Kiran Yadav, Mr. Sagar,
Mr. Satish and others for their support during the degree programme.
Above all, I thank Almighty goddess Chanmundeshawari, Varahantha kalahalli
Swamiy and lord Shiva for the blessings showered on me and helped to complete this
thesis work at proper time.
Any omission in this brief acknowledgement does not mean lack of gratitude.

Bengaluru
July, 2015 (P.S. Dhananjaya Swamy)

CONTENTS
CHAPTER TITLE PAGE NO.
I INTRODUCTION 1-6
II REVIEW OF LITERATURE 7-24
III METHODOLOGY 25-40
IV RESULTS AND DISCUSSION 41-91
V SUMMARY AND CONCLUSIONS 92-99
VI REFERENCES 100-105
APPENDICES 106-116
LIST OF TABLES
Table Page
Title
No. No.
3.1 Banking profile in Mandya District (2012-13) 27
3.2 Banking profile in Chitradurga District (2013-14) 28
4.1 Relative share of borrowing by farmer from different sources in India 42
Flow of institutional credit to agriculture and allied sector from
4.2 44
different institutional agencies in India
Flow of investment (Long term) credit to the agriculture and allied
4.3 44
sectors from different institutional agencies in India
Share of investment credit of different institutional agencies in their
4.4 46
total lending to agriculture and allied sectors in India
4.5 Regional distribution of agricultural credit in India 47
Source wise distribution of KCC through different institutional
4.6 agencies in India (Number of cards issued in Lakhs / Amount 48
sanctioned in Rs. Crores)
Ratio of agriculture and allied sector credit to agriculture and allied
4.7 50
sectors GDP; and Total GDP
4.8 Ratio of agricultural credit to agricultural GDP; and Total GDP 51
Availability of the loan and returns obtained per hectare of Gross
4.9 52
Cropped Area in India
Compound annual growth rate of institutional credit flow to
4.10 53
agriculture and allied sectors in India
Compound annual growth rate of investment credit flow to agriculture
4.11 53
and allied sectors in India
Distribution of respondents according to some socio-economic
4.12 55
characterstics (%)
4.13 Average amount of loan per borrower farmers by source 56
4.14 Distribution of borrower farmers by quantum of loan 57