Abstract

This paper aimed at analyzing the changes in the trends and composition of multi-agency networks (co-operatives, scheduled commercial banks and regional rural banks) in the issuance of credit to the agriculture sector during the post-reform period in India, by using the time series data from the year 1975 to 2005. The analysis revealed that the trends of direct (short and long-term) and indirect institutional credit to the agriculture sector has increased significantly during the post-reform period. As far as the composition is concerned, the share of scheduled commercial banks, as percentage of total direct institutional credit, has increased significantly, whereas the co-operatives share has decreased; although the regional rural banks’ contribution has almost been constant. However, a trial was made by this study also to find out the distribution of indirect finance through scheduled commercial banks.

Key words: Agricultural finance, institutional credit, short and long term credit, post-reform period, India.