Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey
A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhanc...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2017
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/147886 |
| _version_ | 1855528470620143616 |
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| author | Kumar, Anjani Mishra, Ashok K. Saroj, Sunil Joshi, Pramod Kumar |
| author_browse | Joshi, Pramod Kumar Kumar, Anjani Mishra, Ashok K. Saroj, Sunil |
| author_facet | Kumar, Anjani Mishra, Ashok K. Saroj, Sunil Joshi, Pramod Kumar |
| author_sort | Kumar, Anjani |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhancing the flow of institutional credit to agriculture, the links between institutional credit and net farm income and consumption expenditures in India are not very well documented. Using a large national farm household–level dataset and instrumental variables two-stage least squares estimation methods, we investigate the impact of institutional farm credit on farm income and farm household consumption expenditures. Our findings show that in India, formal credit is indeed playing a critical role in increasing both the net farm income and per capita monthly household expenditures of Indian farm families. We also find that, in the presence of formal credit, social safety net programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) may have unintended consequences. In particular, MGNREGA reduces both net farm income and per capita monthly household consumption expenditures. In contrast, in the presence of formal credit, the Public Distribution System may increase both net farm income and per capita monthly household consumption expenditures. |
| format | Artículo preliminar |
| id | CGSpace147886 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1478862025-11-06T06:33:26Z Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey Kumar, Anjani Mishra, Ashok K. Saroj, Sunil Joshi, Pramod Kumar income consumer expenditure agricultural policies households families farm income social safety nets credit rural areas family farms A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhancing the flow of institutional credit to agriculture, the links between institutional credit and net farm income and consumption expenditures in India are not very well documented. Using a large national farm household–level dataset and instrumental variables two-stage least squares estimation methods, we investigate the impact of institutional farm credit on farm income and farm household consumption expenditures. Our findings show that in India, formal credit is indeed playing a critical role in increasing both the net farm income and per capita monthly household expenditures of Indian farm families. We also find that, in the presence of formal credit, social safety net programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) may have unintended consequences. In particular, MGNREGA reduces both net farm income and per capita monthly household consumption expenditures. In contrast, in the presence of formal credit, the Public Distribution System may increase both net farm income and per capita monthly household consumption expenditures. 2017 2024-06-21T09:23:27Z 2024-06-21T09:23:27Z Working Paper https://hdl.handle.net/10568/147886 en https://hdl.handle.net/10568/147674 https://hdl.handle.net/10568/147558 https://doi.org/10.2499/p15738coll2.134240 Open Access application/pdf International Food Policy Research Institute Kumar, Anjani; Mishra, Ashok K.; Saroj, Sunil; and Joshi, Pramod Kumar. 2017. Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey. IFPRI Discussion Paper 1614. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147886 |
| spellingShingle | income consumer expenditure agricultural policies households families farm income social safety nets credit rural areas family farms Kumar, Anjani Mishra, Ashok K. Saroj, Sunil Joshi, Pramod Kumar Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title | Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title_full | Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title_fullStr | Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title_full_unstemmed | Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title_short | Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey |
| title_sort | institutional versus noninstitutional credit to agricultural households in india evidence on impact from a national farmers survey |
| topic | income consumer expenditure agricultural policies households families farm income social safety nets credit rural areas family farms |
| url | https://hdl.handle.net/10568/147886 |
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