Agricultural policy and role of banks from Indian farmerandrsquo;s perspective: A study with reference to Tamil Nadu

Abstract

In India, the main objectives of agricultural policy are to remove the major problems of agricultural sector related to improper and inefficient uses of natural resources, predominance of low-value agriculture, poor cost-benefit ratio of the sectoral activities and insignificant progress of co­operative farming and other self-help institutions. So, role of banks in implementing agriculture policies are of paramount importance. Banks in India provide financial assistance to the farmers for the purpose of enhancing their livelihood as well as agriculture productivity. Banks being regulated by Reserve Bank of India should follow the guidelines of Reserve Bank of India in implementing agriculture policy and safeguard the interest of farmers. In this research paper, investigator describes the contribution of banks in implementing agriculture policy in India.