Department of Agricultural Economics, S D Agricultural University, Sardarkrushinagar, 385506, Gujarat, India
Online published on 13 December, 2019.
Credit is one of the critical inputs for agricultural development. Our results establish a proportional relationship between the amount borrowed and landholdings size. A contrary study also establishes an inverse relationship between the amount borrowed per hectare and landholding size. The study shows that the credit supply is equitably distributed across the landholding class but assets are relatively unequally distributed. Of the total credit availed by farmers, 63.9% is availed from institutional sources and 36.1% from non-institutional sources. The factors that influence the decision to borrow from institutional sources are the size of operational landholding, farm asset value and the household head's age. This information will help increase farmers’ credit absorption capacity.
