FROM CONSTRAINT TO OPPORTUNITY: STRATEGIES FOR EFFECTIVE AGRICULTURE CREDIT MANAGEMENT

Agriculture as a business activity is at a juncture where it has to pivot to either high-end technology-oriented or natural/organic farming. For this, understanding the credit scenario is imperative to boost economic activity. An Ex-post facto was formulated to elucidate farmers’ constraints in credit availing, utilization, and repayment, obtain suggestions, and formulate strategies. In Gujarat state, two districts were conveniently selected from which four blocks and four villages from each, making a sample size of 230. With pre-tested, well-structured interview schedule response was obtained for which statistical analysis as frequency, percentage, and Kendall’s coefficient of concordance (W) were put to use, and results were tabulated. Market price fluctuations (Mean score 176.67), low farm profitability (164.00), and inaccessibility of credit information (133.33) were ranked as the top three constraints. The study revealed a moderate agreement (W= 0.291) among farmers regarding these constraints, emphasizing the need for tailored solutions. Farmers’ suggestions, such as lowering interest rates (52.17%), increasing loan amounts (42.61%), and offering loans in both cash and kind (31.30%), reflect their desire for more flexible and accessible credit options. Establishing agriculture credit counselling services within banks, promoting sustainable agricultural practices, like Zero Budget Natural Farming, Leveraging fintech solutions, and revitalizing Primary Agriculture Credit Societies (PACS) would make the agricultural credit system more inclusive and efficient, transforming constraints into opportunities for India’s farmers.