A STUDY OFAGRICULTURAL FINANCE PROVIDED BY BANKS IN SEDAM TALUKA, KALABURAGI DISTRICT OF KARNATAKA

Dr. SANTOSH M. SINGH

Volume : VII, Issue : IV, April - 2018

A STUDY OFAGRICULTURAL FINANCE PROVIDED BY BANKS IN SEDAM TALUKA, KALABURAGI DISTRICT OF KARNATAKA

Dr. Santosh M. Singh

Abstract :

Finance in agriculture is as important as development of technologies. Technical inputs can be purchased and used by farmers only if sufficient money (funds) is available with farmers. Most of the times farmers suffer from the problem of inadequate financial state. This situation leads to borrowing from an easy and comfortable source. Professional money lenders were the only source of credit to agriculture till 1935. They used to charge unduly exorbitant rates of interest and follow serious practices while giving loans and recovering them. As a result, farmers were heavily burdened with debts and many of them are left with perpetuated debts. There were widespread discontents among farmers against these practices and there were instances of riots also.The modern agriculture has increased the use of inputs especially for seed, fertilizers, irrigational water, machineries and implements, which has increased demand for agricultural credit. The adoption of modern technology, which is capital intensive, has commercialized agricultural production in India. Besides, the farmers‟ income is seasonal while his working expenses are spread over time. In addition, farmer‘sinadequate savings require the uses of more credit to meet the increasing capital requirements. Furthermore, credit is a unique resource, since it provides the opportunity to use additional inputs and capital items now and to pay for them from future earnings. In this context, this study is an attempt to find out the farmers’ perception towards agricultural finance provided by various sectors of banks in Sedam taluka, Kalaburagi district of Karnataka.