Comparative Analysis of Institutional Credit Flow to Agriculture and Horticulture Sector: A Case Study in Mysuru District, Karnataka, India

Abstract

Agriculture and horticulture farming require substantial investments, which are generally met through various sources of credit. Among these, institutional credit is regarded as the most effective and reliable source for the farming community. Credit is considered a crucial input for agricultural development, enabling farmers to make new investments and adopt improved technologies, thereby enhancing their socio-economic status. The total amount of credit allocated to the agriculture sector in Mysuru district has shown a consistent increase over the years (₹1,340 crore in 2012–13 to ₹3,489 crore in 2017–18). The study also revealed that horticulture farmers earn a higher average annual income (₹1, 19,416) compared to agriculture farmers (₹74,567). It was also observed that a majority of horticulture farmers belong to the small (45%) and medium (40%) categories, indicating that horticulture contributes significantly to both income generation and nutritional security. It is evident from the study that loan repayment capacity of horticulture farmer is more compare to agriculture farmer which is due to less crop diversity and mono cropping practice among agriculture farmers.