Hayat Ashraf

Agriculture finance in India refers to the financial services and support provided to farmers and the agricultural sector to meet their credit and financial needs. Access to finance is crucial for agricultural development, productivity enhancement, and rural economic growth. Here's an overview of agriculture finance in India: 1. Institutional Credit: Institutional credit plays a significant role in agriculture finance. The main sources of institutional credit in India are commercial banks, regional rural banks (RRBs), cooperative banks, and microfinance institutions (MFIs). These institutions provide agricultural loans to farmers for various purposes such as crop production, farm mechanization, irrigation, livestock rearing, and rural infrastructure development. 2. Priority Sector Lending: Agriculture is categorized as a priority sector by the Reserve Bank of India (RBI), mandating banks to allocate a certain percentage of their lending to the agricultural sector. This ensures that...