Impact of Microfinance in the Upliftment of Agriculture Sector

The agricultural production has been showing declining trend during 2001-07 and the income from agriculture is increasingly becoming insufficient to fulfill even the fundamental consumption needs of farm households. It's more thus far small and marginal farmers whose income falls in need of their consumption expenditure. during this situation, the bulk of farm households do not have savings to speculate in critical inputs like irrigation, seed, fertilizer and agricultural chemicals. Institutional agricultural credit is that the only option which may help in increasing investment in agriculture through improving the liquidity of the farmers for using critical inputs at proper time. The financial requirement of farmers has increased manifold because of adoption of contemporary technology Considering the raising demand for agricultural finance in Bihar, NBFC (National Bank for Agriculture and Rural Development, Regional Office, Patna) also raised the projection of agricultural finance within the state from Rs 1745 crore in 2001-02 to Rs 5720 crore in 2008-09.and Rs. 8427 crores in 2009-10.