Agriculture Credit
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Transcript Agriculture Credit
Agriculture Credit
What is Credit?
According to Samuelson
“ Credit is the use of someone else’s funds
in exchange for a promise to pay with or
without interest at a later date”
“ Farm Credit or Agriculture Credit is the count
of loan or Credit obtained form any source for the
promotion & development of Agriculture”
Agriculture Credit
Classification of Agriculture Credit
1.
Short Term Credit:
2.
Provided for one year, purpose is for purchasing of
fertilizers, pesticides etc.
Medium Term Credit:
3.
Provided for one to five years, Purpose is purchasing of
spry machines or drainage improvements etc.
Long Term Credit
provided for a period exceeding five years, purpose for
purchasing tractors, harvesting machines & install of tube
wells/ agriculture land etc.
Agriculture Credit
Sources of Agriculture Credit
Non-Institutional or Informal Sources
Village Money Lenders
Friends & Relatives
Landlords
Institutional or Informal Sources
Zarai Taraqiati Bank Limited ( 1961, only agri credit, low interest)
Commercial Banks ( More formalities, High interest/ ZTBL)
Cooperative Societies ( 1904, in 1990 Coop 60562, advance to mem)
Cooperative Banks ( old form, each province, advance every type)
Taccavi loans (up to 1960s, crop failure, were at low interest rate)
Agriculture Credit
Need of Agriculture Credit
Agrarian Economy
Agriculture Backwardness
Low income of farmers
Uneconomic Holdings
Storage & Marketing
Debt
Irrigation facility
Farm productivity
Interim difficulties
Modern Technologies
Unproductive Expenditures
Agriculture indebtedness in Pakistan
Natural climates
Civil & Criminal Suits
Unorganized Marketing Conditions
Agriculture Credit
Problems of Agriculture Credit
Small Units
Damage to crops & Land
Low & Uncertain yields & incomes
Lack of Credit worthiness & Security
Small & large cultivators
Unproductive uses
High Cost
Limited flow of Capital to Small Farmers
Delayed disbursement of Credit
Agriculture Credit
Measures to Solve those Problems
Agriculture Credit Institutions
(ADFC1952)(ABP1957)(ADBP1961) ( ZTBP)
Federal Bank for Co-operatives (1976)
Agriculture Credit Advisory Committee
(1972)
Special Schemes (1977 extend credit amount)
Recovery of Loan
Finance in kind & supervised
Pass Book System