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Demand and supply of institutional credit in Rajasthan

Vishnu Shanker Meena, Shirish Sharma and S.S. Jheeba

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Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 4
First page : ( 345) Last page : ( 351)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2014.00556.3

Demand and supply of institutional credit in Rajasthan

Meena Vishnu Shanker1,*, Sharma Shirish2, Jheeba S.S.3
1Ph.D. Scholar, Department of Agricultural Economics, SKN COA, Jobner (Jaipur)

2Associate Professor of Economics, Department of Agricultural Economics, SKN COA, Jobner (Jaipur)

3Senior Research Fellow, COA, SKRAU, Bikaner, Rajasthan

*Email: vishnurau@gmail.com

JEL Classification: C81, E51, Q14

Abstract
The present investigation endeavors to cover issues related to demand for and supply of agricultural credit. The demand of credit increased from ‘3740 crores in 2000–01 to ‘6502 crores in 2010–11 in Rajasthan. However, supply of credit increased from ‘2648 crores to ‘11816 crores in the specified period leading to surplus supply of ‘5314 crores in 2010–11 in Rajasthan. The functional analysis indicate that the elasticity of value of output to agricultural productivity was estimated to be 0.28 indicating a positive relationship between them. The impact of inputs on agricultural productivity index measured through coefficient of elasticity came out to be 0.15 which indicates that farming is still in its primitive state. A closer scrutiny of results showed that with one per cent increase in input-output price ratio has increased the total value of output by 84 per cent. In a nutshell, the impact of institutional agricultural credit is still in its younger age and there is a need to promote and channelize the credit in development and modernization of agriculture in Rajasthan.

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