High Ratio of Agriculture NPAS In Priority Sector Lending By Public And Private Banks In India - Reasons, Suggestions and Discussions

Agriculture is a very important sector in India. In fact it is the life and blood of our economy. Despite having so much importance, it is increasingly facing various problems, which arise from inadequate technologies, indifferent attitude of the government, socio-economic condition of farmers and the credit systems prevalent in India. Government and banks are continually working for development of this sector, but certain inherent challenges and risks such as high number of non-performing assets (NPAs) are posing problems. In order to solve these problems it is important that certain alternative methods as extension agriculture activities and fair price mechanisms should be practiced. This paper aims to first throw light on some systemic reasons behind the high number of NPAs in the agricultural sector, and then offer suggestions to reduce them.