Importance of Agriculture Financing with Special Reference to India


  • Dr. Sunil Joshi



Producing food items through farming and forestry is called agriculture. The existence of the entire human race is dependent on agriculture itself. The basic requirement of our life is fulfilled by the agriculture sector. In agriculture, the practice of growing crops or raising animals is described. India is an agricultural dominated country, and it is the foundation of our country's economy. In India agriculture is not just farming, but an art of living. The entire country depends on agriculture. The hunger of the people is eradicated only through agriculture. Despite being the main economic activity, productivity of production factors involved in agriculture is very low compared to developed nations. Economists have proved that agriculture and farmers are pioneers of economic development, who contribute immensely in its development. Such as by supplying wage goods to industrial workers, transferring surplus from agriculture to finance, for industrialization, using the product of industry as an investment for the agricultural sector, and transferring excess labour from agriculture to industrial jobs. It is very sad that the farmer who feeds the people is facing economic difficulty due to low productivity. Government of India, State governments, National Bank of Agriculture and Rural Development and other financial institutions continuously working to enhance the livelihood of farmers. Agricultural finance is a finance system related to the execution of works related to rural development and agriculture related activities which are known as a department dedicated to the financing of its supply, wholesale, distribution, processing and marketing. Despite many financial inclusion programs, about 44% of rural households take loans from informal sources. Additionally, the majority of the debt is taken over by affluent farmers and is used for consumption as opposed to productive purposes. This paper looks at different types of finances available, importance of Agriculture financing, various initiatives taken by the government and financial institutions to uplift the agriculture sector and various challenges facing by agriculture sector.




How to Cite

Dr. Sunil Joshi. (2020). Importance of Agriculture Financing with Special Reference to India. International Journal of Modern Agriculture, 9(3), 319-323.