Published Paper Details:

Agriculture as a priority sector occupies a prominent role and hence all possible measures have to be taken to protect this sector in its strict sense. As a result, the Government of India have been framing number of initiatives to protect this sector including provision of adequate credit supply. Interest subsidy is another significant measure, which has to be ensured even now to protect the agriculturists from the high cost of borrowings as well as high cost of agricultural accomplishments. Despite the interest subvention scheme is one of the land marks in the history of agricultural credit system, it has not gained much up to the standard. An in-depth analysis of the subsidy system enjoyed by the agricultural borrowers will be highly helpful to the policy makers in order to ensure a defect free and efficient subsidy system. It is clear from the statistics reveal that majority of the agricultural borrowers have not enjoyed the benefit of subsidy and are out of the purview of the interest subsidy system associated with their credit. It is also undoubted that subsidy is an inevitable one in the credit system for the enrichment of the sector. Therefore, some more crucial measures by way of policies, programmes, initiatives and strategies are to be ensured by Governments at various levels to ensure the availability of subsidy as fixed.