State of Agricultural Finance in India: A Case Study of Haryana

The paper has investigated the level of financial inclusion in Haryana, i.e. how much financially inclusion the growth of agricultural sector is in Haryana and whether there exists dry discrimination in provision of agricultural finance to different segments of farmers. For the first aim of study a Financial Inclusion Index (FII) was prepared based on the data taken from the Banking Statistical Returns, published by Reserve Bank of India, for the year 2010. For the second aim, primary survey was conducted in three districts (Kurukshetra, Rohtak and Mewat) of Haryana by interviewing 30 farmers selected randomly during March-April, 2012. For analysis, multivariate logit model was used. Based on FII, study has revealed that the range of financial inclusion was from medium to high implying that Haryana is moving towards financial inclusion. The second analysis has concluded that there exists discrimination in the provision of agricultural finance with preference to a particular segment of population and landholding-size.