Role and performance of institutional sources of credit in agriculture: A study in Chhattisgarh

The present research, titled “Role and Performance of Institutional Sources of Credit in Agriculture: A Study in Chhattisgarh” focuses on assessing the effectiveness of commercial banks, cooperative banks and regional rural banks (RRBs) in delivering agricultural credit. The objective is to evaluate their individual contributions, challenges, and potential for improvement, with the aim of strengthening credit delivery systems, promoting rural financial inclusion and supporting sustainable agricultural development. The findings highlight the significant role institutional credit plays in Chhattisgarh's agricultural landscape, emphasizing its importance in meeting farmers’ financial needs. Despite notable contributions from commercial banks, cooperative banks, and RRBs, there is still a pressing need to improve credit access and affordability, particularly for small and marginal farmers. Enhancing the capacity of cooperative societies, extending the reach of RRBs and integrating semi-institutional and informal credit sources into the formal system could further reinforce the state’s agricultural credit infrastructure. From 2021 to 2024, Institutional lenders in Chhattisgarh showed varying levels of performance in agricultural credit distribution. Cooperative banks consistently exceeded their targets, achieving over 120% in 2024. Commercial banks showed improvement, with disbursement levels rising from 51.31% in 2023 to 69.35% in 2024. RRBs also demonstrated progress, increasing their performance from 25.17% in 2021 to 49.17% by 2024.