Published Paper Details:

This paper presents the empirical research and report of the banks and committee's role towards the agriculture sector and finance of the state which shows that agricultural production is declining during 2001-07 and the farmers are unsatisfied from the income from agriculture to meet their basic needs. It is far small and marginal farmers whose income is less than their expenditure. Due to this most of the farmers don't have money to invest in the basic inputs of farming like irrigation, seeds, fertilizers and agricultural chemicals and due to adoption of modern technology, the financial requirement of farmers has increased more. So, there is the only option which can help in investing in agriculture by using the important inputs at the right time through improving the liquidity of the farmers is Institutional agriculture credit. Keeping in view the increasing demand for agricultural loan in Bihar, the NABARD is also focusing on it and increased their agricultural credit in the State from Rs 1745 cr. to Rs. 8427 cr. in last 10 years.