Demand and supply of institutional credit in Rajasthan

The present investigation endeavors to cover issues related to demand for and supply of agricultural credit. The demand of credit increased from '3740 crores in 2000?01 to '6502 crores in 2010?11 in Rajasthan. However, supply of credit increased from '2648 crores to '11816 crores in the specified period leading to surplus supply of '5314 crores in 2010?11 in Rajasthan. The functional analysis indicate that the elasticity of value of output to agricultural productivity was estimated to be 0.28 indicating a positive relationship between them. The impact of inputs on agricultural productivity index measured through coefficient of elasticity came out to be 0.15 which indicates that farming is still in its primitive state. A closer scrutiny of results showed that with one per cent increase in input-output price ratio has increased the total value of output by 84 per cent. In a nutshell, the impact of institutional agricultural credit is still in its younger age and there is a need to promote and channelize the credit in development and modernization of agriculture in Rajasthan.