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Credit Constraints and Distress Sales in Rural India

Evidence from Kalahandi District, Orissa

Dados Bibliográficos

ID2158159
AutoresGagan Bihari Sahu (0000-0002-3015-3089), Madheswaran (0000-0001-9663-0127), S Madheswaran, D Rajasekhar (0000-0002-9542-058X)
Ano2004
Volume31
Fascículo2
Páginas210-241
Data de publicação2004-01-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoThe Journal of Peasant Studies (JOURNAL)
Identificadores do periódicoISSN: 0306-6150 • E-ISSN: 1743-9361
EditoraInforma UK Limited (PUBLISHER • GB)
DOI10.1080/0306615042000224285
OpenAlexW1987352955
IdiomaEN
Citações recebidas12
Referências citadas22

The literature on the rural credit market in India (and elsewhere) has generally assumed that peasant farm households are rationed in their access to subsidized formal credit. Because of a lack of infrastructure and poor access to institutional credit, such farmers are exploited by means of an interlocked market connecting informal credit to the sale of paddy. The resulting gap, between the sale by a borrower of paddy at a predetermined low price, and the price of this commodity on the open market, constitutes the amount of what is termed a distress sale. The latter is itself influenced by the bargaining capacity (or lack thereof) of the peasant farmer who borrows on the informal market. Also of importance in determining whether or not a cultivator is compelled to resort to the informal credit market - and thus into an interlocked arrangement - is the need for additional liquidity to meet production costs and/or household consumption, as well as the monopsony nature of the paddy market. Data from Kalahandi district in Orissa suggest that access to formal credit is limited in rural areas although there exists a high demand for it, that a high degree of credit rationing by the formal lender occurs, and that poor implementation by the state of minimum support price policy all contribute to the need for informal loans and its attendant interlinkage

Bond market · Business · Commodity · Commodity market · Consumption (sociology · Credit rationing · Economics · Interest rate · Market economy · Market liquidity · Peasant · Subsidy · Land Rights and Reforms · Microfinance and Financial Inclusion · Urban and Rural Development Challenges · Finance

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Obras citantes distintas12
Citações por ano0,57
Intervalo de citações2005 - 2026 (22)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 12
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