Bridging The Gap: Assessing The Role Of Financial Literacy In Enhancing Working Capital Management Among Farmers In Dhule District

Abstract The agricultural sector in rural India has persistent obstacles, especially in financial decision-making among marginal and small-scale farmers. A critical challenge is the management of working capital, vital for the everyday operations of agriculture, yet frequently neglected due to prevalent financial illiteracy. This research article, grounded on a literature analysis, seeks to examine the relationship between financial literacy and efficient working capital management, with a particular emphasis on farmers in the Dhule District, Maharashtra. The study is structured around two primary objectives: first, to critically evaluate and synthesize the existing evidence on the correlation between financial literacy and productive capital practices in the agriculture sector; and secondThe study consolidates findings from over 60 studies, policy papers, and empirical reports from national and international sources, concentrating on agricultural finance, financial inclusion, rural development, & advances in agri-fintech. This study examines the influence of financial literacy elements, such as budgeting, debt management, and the utilization of digital financial tools, on farmers' ability to efficiently manage working capital. The study evaluates the techniques and their execution.Research demonstrates that despite the availability of institutional supports and financial choices, their actual implementation and successful use are impeded by several barriers, including behavioral, educational, or infrastructural challenges.This assessment emphasizes the necessity of instituting financial literacy programs at the community level by including diverse viewpoints and tackling certain local challenges. It provides a foundation for politicians and educators to reconsider and reformulate policies designed to improve financial empowerment in rural regions, assuring