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Economic Analysis of Institutional Finance for On-Farm Irrigation Development in Karnataka

KrishiKosh

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Title Economic Analysis of Institutional Finance for On-Farm Irrigation Development in Karnataka
 
Creator Shivaswamy G.P.
 
Contributor R.S. Poddar
 
Subject Agricultural Economics
 
Description On-farm irrigation development requires large capital investments and
depends mainly on external financial support. Financial support is provided by rural
financing agencies like commercial banks, Regional Rural Banks (RRBs) and
cooperative banks under refinancing assistance from NABARD. Present study was
undertaken to analyze trend in flow of and institution wise on-farm irrigation
development in Karnataka. The study used both primary and 10 years time series data
for analysis. Findings of the study revealed that the total minor irrigation credit from
institutional sources grew by 21.29 per cent per annum during 2001-02 and 2010-11.
However, the share of minor irrigation credit in term loan declined from 11.29 to 6.92
per cent over the years. Commercial banks and regional rural banks were the major
sources with higher contribution towards development of minor irrigation while the
share of cooperatives declined over the years. The percentage of credit gaps observed
in case of co-operative banks was 42.74 per cent followed by RRBs (25.46%) and
commercial banks (18.26%). 11.61 per cent of diversion of funds was noticed in case
of commercial banks followed by regional rural banks (6.72%) while no diversion of
funds was found in the case of co-operatives loans. Cumbersome procedures,
inadequate amount of co-operative credit, high rate of interest with commercial banks
and RRBs were the main constraints in strengthening minor irrigation credit. The
study advocates that financing of minor irrigation be made priority in rural financing.
The role of co-operatives in financing minor irrigation needs to be strengthened and
procedures for lending by the institutions need to be simplified using modern ICT’s.
 
Date 2016-11-14T17:00:56Z
2016-11-14T17:00:56Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/85496
 
Format application/pdf
 
Publisher UAS, Dharwad