Question

cooperative credit society agriculture finance​

Answer 1

Answer:

It provides short-term and medium-term loan to farmers which helps to meet their short-term financial requirements. It supplies agricultural inputs and provides marketing facility for the agricultural products. For the development of agricultural sector and allied activities adequate and timely finance are essential.

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Answer 2

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Agricultural credit is considered as one of the most basic inputs for conducting all agricultural development programmes. In India there is an immense need for proper agricultural credit as Indian farmers are very poor. From the very beginning the prime source of agricultural credit in India was moneylenders.

After independence the Government adopted the institutional credit approach through various agencies like co-operatives, commercial banks, regional rural banks etc. to provide adequate credit to farmers, at a cheaper rate of interest. Moreover, with growing modernisation of agriculture during post-green revolution period the requirement of agricultural credit has increased further in recent years.

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