A Study on Extent Of Utilisation of Agricultural Credit by the Small Farmers in Madurai District

Abstract

India is an agricultural country. Indian economy is basically agrarian. The structure of the Indian economy comprises of agriculture, industry and allied activities such as transport, banking, insurance, warehousing and the like. Agriculture plays a pivotal role in the Indian economy. Although its contribution to Gross Domestic Product  (GDP) in now around one-sixth, it provides employment to 56% of the Indian workforce. Agriculture plays a predominant role in India providing employment to a large number of people living in villages. With a view to improve the economic conditions of the villagers, the Government of India has taken various measures of which the establishment of institutional agencies for providing inputs such as finance, implements, seeds, fertilizers, pesticides and agricultural equipment is very significant. All the agencies are owned and managed by the Central and State Government. Agricultural sector is more useful to the economy directly and indirectly. However, the agricultural sector remains the principal source of livelihood for more than 52% of the population though its contribution to the national GDP had declined to 14.2% due to the high growth in industries and service sectors. Further the farmers are changing their cropping pattern, giving more importance to the commercial crops than the traditional crops. Besides, the prices of food grains are increasing continuously.