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Understanding Agricultural Credit and Financing

Its been a while since I have written a post here and last time I wrote - it was on the savings theme - a whole month of reading, talking, discussions and two SPARK sessions (usual literature/study review presentations at IFMR Research). I am still working on a video documentary meant for the Savings theme - should be done in a week or two perhaps. This is when I started spending time on a topic that has been mentioned here before: agricultural financing

The first document I have come across is this: Link - Agricultural Credit in India: Status, Issues and Future Agenda. This document has a very comprehensive breakup of how India's policy on agricultural credit has come to be right from the colonial period. Yes, it is outdated, however seeing how the government has come to play a massive role in shaping up agricultural credit and its features in India - a question rises in my mind. Did the Government do a mistake by regulating too much of it? This idea or question is partially because of watching this interesting documentary on how Government's should not be involved in regulating industries. For those of you who would be interested in what Friedrich Hayek (exponent of classical liberalism) has to say about the role of Government, I suggest you watch this documentary - Link

As you can see from the history of agricultural credit in the previous document, there was a time when people relied heavily on money-lenders and not on co-operatives - should that have been allowed to evolve? We cannot change the past, however we can change the direction we are headed now if we understand the past really well, at least I like to think so. Do watch out for more in the coming days on the topic of Agricultural Credit and Financing.


  1. Financing Agriculture:SFACIndaia provides the financing agriculture, finance in agriculture and agricultural loan.


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