One of the salient features of the agrarian economy of India is
preponderance of small and marginal farmers. Technological
break-through in agriculture has created a great potential for
increasing agricultural production. To step up the tempo of
agricultural production it is imperative that the farmers must be
provided adequate, timely and less costly credit to meet heavy
requirement of modern technology in agriculture. RRBs have come in
a big way to provide credit to farmers. With respect to crop
production, the crop loan has been more popular among the small and
marginal farmers because of its purposes and nature for which it is
granted. The crop loan facility to them is supposed to have had a
positive impact on crop production, net income and employment on
their farms. Therefore, credit widening and deepening efforts
should be made by improving credit absorption capacity through
hassle-free loaning process, augmentation of technology flow and
providing supporting infrastructure to the small and marginal
farmers with inadequate funds for crop production.
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