Behavioral pattern of long-term advances made by PLDBS in Haryana

Indian agriculture is becoming more capital intensive, modern inputs and greenhouses needs more and more capital. Agriculture holds a great importance from a futuristic perspective in India. There are various institutional and non-institutional sources in India to fulfill the capital requirement of farmers by charging differential rate of interest. Among these sources Co-operative finance is the best and cheapest source of rural finance because loans are advanced for productive activities and also at low rates as compared to non-institutional sources. There are separate co-operative institutions for advancing short-term and medium-term loans on the one hand and the long-term loans on the other. Whereas the primary agricultural co-operative credit societies generally advance short-term and medium-term loans to the farmers, the primary land development banks look after long-term financial requirements of the farmers. In the present study attempt is made to analyse the temporal behavioral pattern of Growth of Long-term advances made by Primary Land Development Banks in Haryana by using secondary data from 1990–91 to 2011–12 i.e. post reform period and by analyzing through suitable technique it is found that Land Development Banks in numbers decreasing or showing negative growth after post-reform period but in spite this membership in these banks showing positive growth this is due to because their advancement for Long-term loans is increasing. These banks advance loans for multiple purposes such as redemption of old loans, purchase of land, purchase of tractors, installation of Tube wells effecting other improvements on land to the farmers of the state.