Truncated Access to Institutional Agricultural Credit as a Major Constraint for Rural Transformation: Insights from Longitudinal Village Studies

The study has examined the trend of formal credit growth and its influence on rural transformation in terms of accelerating growth in household income levels. It has also identified the factors influencing the access to formal agricultural credit in the study regions, viz. eastern and semi-arid tropics (SAT) of India. The longitudinal household level data of about 1200 households in three states each in these two regions have been analysed for the period 2010 to 2013. The study has observed that the poor access to formal credit has compelled these households to take loan from informal sources who sometimes charge interest @ 60 to 120 per cent per annum, threatening the livelihoods of these smallholders and poor households. During the study period of three years (2010 - 2013), no change in situation was visible in these villages and the access to formal sources of agricultural credit seems to remain truncated. The main reasons for this disturbing trend is the lack of institutional framework to provide cheap and subsidized credit to these marginal and landless households, who take land on lease for cultivation. The Tobit model has been fitted to determine the accessibility to formal agricultural credit in these regions. The study has highlighted the need of building a strong and inclusive financial infrastructure to provide necessary credit support to the smallholder farmers in the eastern and SAT regions for bringing a rapid rural transformation

Understanding Trait Preferences of Farmers for Post-Rainy Sorghum and Pearl Millet in India - A Conjoint Analysis

A study was carried out on two important dryland crops, i.e., post-rainy season sorghum and pearl millet which are staples in Maharashtra, Karnataka, Rajasthan and Gujarat states of India. Both post-rainy (rabi) season sorghum and pearl millet are mainly grown under low rainfall regimes as they are drought tolerant and are prized for grain quality and fodder. The present study is undertaken to quantify the varietal attributes preferred by the formers for post- rainy sorghum and pearl millet using conjoint analysis technique. With this knowledge, researchers can focus on the most important features of seeds and design a variety that is most likely to gain acceptance of the target buyers. Further the utility attributes derived from the analysis are used to simulate preferences for new improved cultivars for both the crops that will identify the most preferred variety. The study would thus help in screening new improved cultivars of these crops for preferred attributes and overall preference

Does caste determine farmer access to quality information?

This paper explores the social inclusiveness of agricultural extension services in India. We estimate the probability and frequency of farmers' access to extension services and resulting changes in crop income across different caste groups. The literature suggests that caste-based social segregation manifests in various spheres of life, and perpetuates economic inequality and oppression. An econometric analysis of nationally-representative data from rural India verifies this with respect to the agricultural sector. Farmers belonging to the socially-marginalized castes are found to have a lower chance of accessing the public extension services, primarily due to their inferior resource-endowment status. Contacting extension agents at least once increased the average annual crop income by about 12 thousand Indian rupees per household, which is equivalent to 36% of the annual crop income of those without access to extension services. There exists significant impact heterogeneity. Farmers from the socially-marginalized castes hardly benefited from accessing the extension services. Based on these observations, we have developed a number of policy recommendations that could improve the social inclusiveness of agricultural development strategies in rural India

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Not AvailableThe study has examined the trend of formal credit growth and its influence on rural transformation in terms of accelerating growth in household income levels. It has also identified the factors influencing the access to formal agricultural credit in the study regions, viz. eastern and semi-arid tropics (SAT) of India. The longitudinal household level data of about 1200 households in three states each in these two regions have been analysed for the period 2010 to 2013. The study has observed that the poor access to formal credit has compelled these households to take loan from informal sources who sometimes charge interest @ 60 to 120 per cent per annum, threatening the livelihoods of these smallholders and poor households. During the study period of three years (2010 - 2013), no change in situation was visible in these villages and the access to formal sources of agricultural credit seems to remain truncated. The main reasons for this disturbing trend is the lack of institutional framework to provide cheap and subsidized credit to these marginal and landless households, who take land on lease for cultivation. The Tobit model has been fitted to determine the accessibility to formal agricultural credit in these regions. The study has highlighted the need of building a strong and inclusive financial infrastructure to provide necessary credit supportNot Availabl

Understanding Trait Preferences of Farmers for Post-Rainy Sorghum and Pearl Millet in India--A Conjoint Analysis

A study was carried out on two important dryland crops, i.e., post-rainy season sorghum and pearl millet which are staples in Maharashtra, Karnataka, Rajasthan and Gujarat states of India. Both post-rainy (rabi) season sorghum and pearl millet are mainly grown under low rainfall regimes as they are drought tolerant and are prized for grain quality and fodder. The present study is undertaken to quantify the varietal attributes preferred by the farmers for postrainy sorghum and pearl millet using conjoint analysis technique. With this knowledge, researchers can focus on the most important features of seeds and design a variety that is most likely to gain acceptance of the target buyers. Further the utility attributes derived from the analysis are used to simulate preferences for new improved cultivars for both the crops that will identify the most preferred variety. The study would thus help in screening new improved cultivars of these crops for preferred attributes and overall preference