Extent and nature of agriculture debt in Haryana: A case study

The demand for credit is increasing rapidly under the impact of agricultural transformation. Adoption of modernization in agriculture and economic expansion takes place as financial intermediaries both banking as well as non-banking play a vital role in growing requirements of credit poses a challenge for its supply. A wide variety of agencies, institutional as well as non-institutional, operate in order to meet this challenge. The institutional agencies namely government, co-operatives and commercial banks to a large extent satisfy the requirements of a sound agricultural credit system. As despite the several efforts made in order to create and strengthen an adequate institutional framework, non-institutional agencies plays a small role in the supply of farm credit in district. The chief sources of non-institutional credit in this area are private moneylender, commission agents, friends/relatives, which co-operatives, commercial banks and government, constitute the institutional sources of indebtedness. The present study has assessed the magnitude of agriculture debt purpose-wise, source-wise and categories-wise and examines the progress of institutional as well as non institutional agricultural credit in Haryana.