Wl-7008-Effects of Farm Credit on Productivity and Resilience in Indian Agriculture

Bibliographic Data

ID9691975
AuthorsPratap S Birthal (0000-0003-2423-8024, corresponding author), Jaweriah Hazrana (0000-0003-3010-9595), Devesh Roy (0000-0003-4795-7240), K J S Satyasai
Year2025
Volume60
Issue3
Publication date2025-01-18
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic and political weekly/Economic & political weekly (JOURNAL)
Journal identifiersISSN: 0012-9976 • E-ISSN: 2349-8846
PublisherSameeksha Trust (PUBLISHER)
DOI10.71279/epw.v60i3.41169
OpenAlexW4407856806
LanguageEN
Citations received1

Finance is one of the main limitations to improving the productivity and resilience of smallholder agriculture. Using household-level data from the recent nationally representative farm survey in India, this paper has assessed the impact of farm credit on productivity and risk in agriculture. Findings show a measurable impact of credit on farm outcomes — a 24% higher productivity and a 16% reduction in downside risk. The effects of credit, however, differ by its source and purpose. Formal-sector credit has a comparatively significant effect. Both productivity and resilience effects are higher if informal credit supplements formal credit, possibly because the latter is likely insufficient. Further, long-term credit for capital investment is more effective than short-term credit, and again, the effects are comparatively significant in the case of their joint use. The main implication is that with rapid changes in climate, financing adaptation and mitigation must comprise an integral component of agricultural planning

Agricultural economics · Agriculture · Archaeology · Business · Economic growth · Economics · Geography · Natural resource economics · Productivity · Resilience (materials science · Agricultural Economics and Practices · Agricultural risk and resilience

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