1 National Dairy Research Institute, Karnal, Haryana-132001 E-mail: aminur_rk@rediffmail.com
2 Department of Agricultural Economics, GBPUA&T, Pantnagar, Uttaranchal-263145
Authors are thankful to the learned referee for his suggestions
This study has examined (i) the regional disparities in per hectare flow of institutional credit to different farm-size groups and, (ii) share of different farm-sizes in the per hectare institutional credit flow to agriculture. It has covered all the six regions of the country as indicated in RBI publications and is based on the published data for the period 1980–81 to 1999–2000 (or the period for which latest data are available).
The study has revealed that inter-regional disparities in per hectare flow of institutional credit to small as well as to non-small farms as measured through coefficient of variation (CV) exhibit a cyclical trend for small farms and a distinct declining trend for non-small farms during the pre-liberalization period (1980–81 to 1990–91). During the post-liberalization period (1991–92 to 1995–96), the direction of change in CV has been found to be reversed, decreasing in small farms and increasing in non-small farms. In addition, it is evident that both flow-wise and rate of growth-wise, the southern region has been well placed, followed by northern region. The eastern and northeastern regions have not been found placed well in this context.
The study on the relative shares of different farm-size groups in per hectare institutional credit flow during the pre-liberalization period has shown that under small farm-size category, the northeastern, southern and central regions could get a higher percentage share in the total per hectare credit flow from institutional sources than the national average of 62.7 per cent.
Under the non-small farm-size group, the western, northern, central and eastern regions have maintained a higher percentage share of credit flow than the all India average. During the post-liberalization period, the picture has not altered significantly. The regions having higher percentage shares of per hectare institutional credit flow than the national average to different farm-size groups have remained more or less the same. The inter-regional disparities in the flow of institutional credit to various farm-size groups increased during the pre-liberalization period and continued to persist during the post-liberalization period.
